Dear Editor,
Reference is made to the Reuters report (July 14). It comes across as a hatchet job to tarnish a family. But one aspect of the report drew my attention, which is, the funding of a shore base built on an artificial island at the mouth of the Demerara River. The report notes that Exxon has contracted a private company (three Guyanese partners and a Belgium builder) to construct the base. The private company, a consortium, is putting up a paltry figure to build the base with Exxon putting up over 95% of the cost. Exxon is funding the project from cost oil that will be deducted from cost oil revenues reducing the amount of money going to government coffers. The private company puts up a mere US$15 million and Exxon the rest to construct the initial phase of the shore base costing some US$300 million.
The first phase is supposed to be ready by early 2024. The other phases of the shore base are projected to cost much more with the exact amount not known. Exxon will lease the shore base and is paying rent up front for usage of the entire facility whose cost may approach US$1 billion. The private company will fully own the shore base. In short, Exxon builds the project with Guyana government cost oil revenues, all being our money except the initial investment of $15 million, and then hand over the shore base to the private consortium. The base is basically being built by Guyana government money.
Why is Exxon paying with our government money for a project that is private? Shouldn’t Guyana government own the shore base since our money is funding over 98% of the project? And why that particular company? Was there an announcement for proposed bids or was this private company preselected without any bids? Did government recommend that company? The government (read Vice President Bharrat Jagdeo) must come clean on how the shore base is being funded since he is charge of all energy related matters and projects. He should assert ownership on behalf of the people of Guyana.
Sincerely,
Lincoln Chase
