Guyana Fails To Complete Development Plan For Oil Sector With US$11.6Mn IDB Loan

• Despite taking a US$11.6Mn loan from the IDB back in 2018 to strengthen the nation’s governance framework for the oil sector, several objectives were either not achieved, or, in cases where they were, are no longer being utilised by the current administration.
• According to an IDB report on the performance of the loan, a key goal for the bank was the creation of a development plan for Guyana’s oil and gas sector, given Guyana’s inexperience in handling such a massive and highly technical sector.
• According to the financial institution, Guyana is on track to build a strategy based on the experiences of nations that have developed an effective institutional architecture for the control of their energy resources, including Brazil, Colombia, Norway, and, most recently, Mexico.
• Importantly, the bank contended that Guyana must have a development plan for the sector as it would outline what mechanisms are to be implemented and over what period for the State to sustainably administer its resources, manage risks and opportunities, and incorporate oil revenues into the development and diversification of certain sectors.

(Source: Kaieteur News)