Guyana Puts Hold On US$20Mn World Bank Loan To Strengthen Scrutiny Of Oil Sector

• Since the People’s Progressive Party/Civic (PPP/C) Government has not requested any disbursements from a US$20M loan Guyana took three years ago to help strengthen the nation’s capacity to manage the oil sector effectively, the World Bank said it has been forced to downgrade the country’s performance score on the loan. 
• The financial institution downgraded the project’s overall implementation to ‘Moderately Unsatisfactory’, as only around 24% of the total credit was disbursed and no disbursement requests have been received by the Bank since October 2020. 
• The bank also said that, starting in the fourth quarter of last year project implementation came to a halt, particularly on critical procurement activities intended to have helped the project reacquire its implementation timeline, and meet its indicators and performance objectives. 
• It also noted that, in late December 2021 the government indicated its intention to “refine the scope of the project to bring it in line with current government priorities.” However, the World Bank said it remains on standby awaiting any guidance from the Government of Guyana on the status and direction of the project and a resumption of critical project activities.

(Source: Kaieteur News)