…encourages Guyanese to take advantage of investments
An official visit by Assistant Secretary of the Department of State’s Bureau of Energy Resources (ENR), Geoffrey Pyatt has led to favourable discussions on long-term partnerships between Guyana and the United States in the areas of energy and climate change.
From left: Vice President Bharrat Jagdeo, US Ambassador Sarah-Ann Lynch, and Assistant Secretary Geoffrey Pyatt
Vice President Bharrat Jagdeo during a press conference on Thursday underscored that both sides were able to engage on areas of mutual interest.
“Both sides expressed the desire to forge a strong, lasting, long-term partnership in the issue of energy, the energy transition, and fulfilling our global commitments on climate change…We discussed key elements of that and how we can achieve all of these goals together in partnership, working with each other,” the Vice President told media operatives.
Pyatt – who was accompanied by Ambassador Sarah-Ann Lynch; Political and Economic Counsellor at the US Embassy, Brian Hall and Economic and Commercial Officer at the US Embassy, Thomas Seger – held a series of meetings with Government officials and business leaders to discuss energy security in Guyana, the United States, and the world.
The Assistant Secretary discussed the US-Caribbean Partnership to address the Climate Crisis 2030 (PACC 2030) including the advancement of clean energy resources and resilient energy infrastructure in a timely manner, and on a sustainable and affordable basis.
He also took the opportunity to discuss Guyana’s immense forests, plans for economic diversification, and major infrastructural upgrades such as the transformational gas-to-energy project.
PACC 2030 establishes a framework to elevate US cooperation with Caribbean countries to support climate adaptation and strengthen energy security while building the resilience of critical infrastructure and local economies to the climate crisis.
PACC 2030 will serve as the US Government’s primary mechanism for regional climate adaptation and resilience and energy cooperation through 2030, as the parties work towards meeting the long-term goals of the Paris Agreement and the 2030 Sustainable Development Goals (SDGs).
According to Jagdeo, Guyana also gave a commitment that investors from around the world would be given a fair opportunity to participate in the country’s development.
“I assured the State Department that investors here from any country in the world – China, India, etc, will be given a fair opportunity. We’re looking for investments in this country in every sector that will bring benefit to our country and that will transform what are just opportunities into realisable projects,” Vice President Jagdeo said.
At the same time, he positioned that the benefits must trickle down to the ordinary man.
“Whilst they come here and make a good return on their investments, the people of this country, our people have to significantly benefit from these investments. That’s balanced. We reiterated that, that every incentive regime and framework for operating in the oil and gas sector will try to maintain that balance, but progressively, more and more of the benefits, particularly in the oil and gas sector will have to come to our people,” the former Head of State asserted.
The Local Content Act lays out 40 different services that oil and gas companies and their sub-contractors must procure from Guyanese companies by the end of 2022. For instance, these companies must procure from Guyanese companies 90 per cent of office space rental and accommodation services; 90 per cent of janitorial services, laundry and catering services; 95 per cent pest control services; 100 per cent local insurance services; 75 per cent local supply of food; and 90 per cent local accounting services.
The Local Content Act mandates penalties for oil and gas companies and their sub-contractors who fail to meet the minimum targets of the legislation, as well as those who are in breach of the Act. These fines range from as low as $5 million to as high as $50 million. Consultations are, meanwhile, currently underway, with the aim of updating the Act. (G-12)
