In a pitch to United Kingdom (UK) investors on the advantages of investing here, President Irfaan Ali yesterday announced that his government will create the infrastructure for development while disclosing that discussions are ongoing with the United Arab Emirates to build a deepwater port.
He however urged UK business persons to be aggressive, as he spoke about their Chinese counterparts’ unrelenting positions when going after investment opportunities.
“We must have a major deep-water port to handle a Panamax [ship]”… “We are in discussions with Abu Dhabi Ports,” Bloomberg yesterday reported Ali as saying during the Guyana Investment Seminar that he is currently attending in London.
However, it is unclear what the fate of the planned CGX port development is, and how Abu Dhabi Ports fits in, given that government has said that there will only be one deepwater port in the Corentyne area.
CGX has said that it would be developing a deepwater port aback Seawell Village, Corentyne, Berbice, which is expected to cost about US$80 million. The civil works are being carried out by the company’s subsidiary, Grand Canal Industrial Estates Inc (GCIE).
The company’s Chief Executive Office Suresh Narine had previously said that CGX is looking at its offshore supply component of the port to be completed during the latter part of this year with the facility being operationalised by the latter part of 2022.
When completed, the port is expected to have an offshore supply component that will provide essential support to offshore oil and gas operations.
The keynote speaker at the Caribbean Investment Forum (CIF2022), hosted by the Caribbean Export Development Agency, in association with the Caribbean Association of Investment Promotion Agencies (CAIPA) in Dubai, last month, President Ali had said that his government was in talks with the Emirates on developing a logistics hub.
But no clear explanation has been given by the President or his Minister of Works on what the plans are.
However, Ali, on previous occasions has underscored the benefits of this country having its own deepwater port facility, as he promised Berbicians that his government will ensure its reality.
“We must invest in the deepwater port in Region Six and we will be doing it,” he had said at a meeting in Region Six earlier this year.
He stated that the building of such a port and the bridging of the Corentyne River will transform the economy of the region and ignite growth within the county. According to the president, with those two projects, Region Six can expect “the expansion of commerce, new businesses and opportunities in shipping, marketing, in technical services, in hotels, entertainment, logistics, insurance, brokerage, financial services, real housing.”
In addition to the port, Ali yesterday told the seminar that not only will his government ensure reliable and affordable power be available by 2025, but that an agreement is being worked on between Guyana, Suriname, and Brazil to ensure energy security among the three nations.
“As I speak to you today, we have maybe the highest cost of energy in the region. We have already committed that the cost of energy must be reduced by 50 per cent. By doing that, it will put Guyana on equal footing to compete with other countries,” he said
Natural gas
“We are bringing in the natural gas to have a new natural gas power plant. We are doing a hydroelectric project and adding solar electric off grid system to the hinterland communities,” he explained.
The president said that the only way the country can progress is if everyone has access to the same amenities and assured that “the investment will be made for all Guyanese to benefit from”.
“We are not stopping at an inward energy policy. We are working on a macro energy policy that involves Brazil and Suriname. Suriname is also having a lot of exploration and they have already found good gas deposits, when we combine the gas with the gas from Suriname. We are now studying whether we now have the potential to become an energy hub for the Guyana Shield and create a new energy corridor. That can supply Northern Brazil. So our energy policy is integrated into the regional energy demand.”
The United Kingdom came in for high praise as Ali told of the works started on enhancing the connectivity between Guyana and Brazil via road. “The first phase of a new highway has already been awarded. The UK is playing an important role in financing that through the CDB which is the implementation partner.”
And as he urged United Kingdom investors to look to one of the fastest growing economies in the world when they want to grow their money, he pointed out that the UK has already earmarked, “maybe notionally, maybe £750,000 pounds as development that Guyana can qualify for”.
He noted that the time to invest was now, as with time, more capital would be needed and the chances of maximising on the opportunities getting more competitive, since financing by other countries and multinationals has gotten significantly easier compared to pre-oil discovery.
“What is missing is the aggressiveness of the private sector in the UK and the EU. Many people ask sometimes why Chinese investors find the markets faster than anyone else… well, I can tell you from my humble experience – their aggression is far different and frankly speaking now that we are being sought after by different stakeholders, our experience is changing,” he said.
He told the forum that UK investors can research earmarked projects and that should they come to Guyana his government will be more than willing to give them face to face meetings with partners here and have them see firsthand what is available.
Singling out a planned ‘Smart City’ development project, Ali urged investors to join in.
“We are also looking at the development of a new city, a smart city and we are working with the best in the business. Developers from Singapore [are being used] for the urban plan of this city and we are hoping we can very soon launch this out. Maybe this is an area we can look at some of the financing from the UK,” he said.
Ali made reference to the United States saying that Washington has already committed to providing attractive financing. “We had a meeting with the US and they said to us whatever financing you are getting, we are committing to you that we’ll beat the financing – the terms – but an interesting question is : would these financing or these terms have been available without oil and gas? ”
Overall, the president told investors that whomever is looking to Guyana to invest must understand that their investment must be hinged to the development of this country’s people. He said that government is working to ensure that the ‘humble and hospitable’ natures of Guyana’s peoples “must never change” and thus they are never taken advantage of.
