Misinterpretation of the Natural Resources Fund Act (2021

Dear Editor,
I wish to record my deep concerns about the misinterpretation of the spirit and intent of the Natural Resources Fund Act (2021) by some, and offer my full policy support to the declared interpretation made by the Government of Guyana on this matter during the years 2022, 2023, and 2024.
I saw some news report in the media a few days ago and it served as an immediate trigger for me to re-read the Natural Resources Fund Act (2021), to clarify in my mind what is the spirit and intent around withdrawals from the Natural Resources Fund. The actions of the Government of Guyana fulfills the mandate of that law.
Firstly, this Act serves to establish the management framework on how the sovereign wealth of Guyana is invested and utilized for the present and future benefits of the people and the sustainable development of the country. The key phrases in the preamble to the Act are “present benefits”, “future benefits”, and “sustainable development of the country”.
Present economic benefits are the positive financial outcomes that result from immediate actions, immediate policies, or immediate projects that serve to bring sustainable development to the people. For example, if funds are withdrawn from the Natural Resources Fund to partially fund the gas-to-shore project, then such an agenda must be supported. The evidence gathered, frames a picture whereby, such an initiative can catalyze the transition from consuming very toxic bunker “C” oil (which is extremely detrimental to the environment) to a cleaner option; gas.
If withdrawals from the Natural Resources Fund are expended to build a road such as “Hero’s Highway” and that road serves to reduce travel time for the public, then that project has contributed to the sustainable development of the people. I have personal experience using the “Hero’s Highway”, which took me to Diamond Village in under 10 minutes, as compared to that same journey on the East Bank Public Road, which takes much longer. That is a clear case of the “Hero’s Highway” also contributing to the economic and social progress in the country.
Editor, please allow me to amplify my specific interest in this subject since I am alarmed by the apparent advocacy by some persons in the society who appear to be attempting to stall the policy agenda of the Government of Guyana. Without money, not all of these promised national development priority projects and policy measures could have been implemented. That is why the National Resource Fund serves as an enabler towards a more ambitious sustainable national development agenda. There is no harm in using it to advance the economic well-being of the people.
By law, withdrawals from the National Resource Fund are permitted once they serve to finance national development priorities, embracing any initiative aimed at realizing an inclusive green economy. Fair enough; but isn’t this what the Government of Guyana did in 2022, 2023, and 2024 with most of their capital projects?
According to the records, withdrawals from the National Resource Fund totalled (considering exchange rates) approximately G$126 billion in 2022, followed by G$209 billion in 2023 and a further G$209 billion in 2024. If one is to juxtapose that with the spending on capital projects in 2022, one will find that some G$258 billion was spent vs a withdrawal from the Fund of only G$126 billion. The arithmetic informs me that some 48% of the capital projects implemented in 2022 could have been easily funded by the Natural Resources Fund. If one is to review the portfolio of Capital Projects for that year, there is compelling evidence of projects specifically designed as national development priority projects. There can be no question about this and to support my firm stance on this matter, I would just want to list a few of them here as follows:
1. The sum of $225 million was spent by the Office of the Prime Minister to support Hinterland Electrification Projects using solar technology. This project when completed is set to deliver solar mini-grids and provide renewable energy systems in the Hinterlands.
2. The sum of $920 million was spent by the Ministry of Housing to support projects to develop Water Supply Systems using solar technology in the Hinterlands.
3. The sum of $867 million was spent by the Government of Guyana under its capital projects to progress the Amerindian Land Titling Projects. In that bundle of spending, there were funds earmarked for Projects to further develop Information and Communication Techno-logy Access and E-Services for Hinterland residents and other residents’ remote communities.
The conclusive evidence from above illustrates that lots of spending intended to bring sustainable development to the people did occur in the year under review.
The same can be said for 2023 and 2024.
In my humble opinion, the evidence is there to demonstrate that G$421 billion and G$646 billion were spent in 2023 and 2024 on national priority capital projects with the principle aim of fostering sustainable national development. Both of these figures surpassed the withdrawal from the Fund in 2023 and 2024 which establishes factually that at no time were funds withdrawn to finance regular or routine government current expenditures such as wages and salaries.
What is also clearly established in facts, is that the Government of Guyana Capital Projects profiles for the years 2022, 2023, and 2024, as listed in Volume 3 of the respective national budgets, are all projects designed to not violate, do not violate and will not violate the 24 voluntary guidelines as declared in the Santiago Principles. There is nothing non-transparent or unaccountable about providing electricity to the hinterland folks using green technology. There is nothing unsound, concerning the governance framework, if a government chooses to move away from dirty Bunker “C” oil to cleaner gas. Any investment in ensuring every Guyanese citizen receives water in their yard can be considered an extremely prudent investment; after all, water is life.
I have had the privilege of having direct access to observe and discuss the history and operations of the Norwegian Sovereign Wealth Fund. The technicians whom I have met with in Europe, took great pains to impress upon me that while commercial production in Norway began in 1970, during the first 14 years, they spent most of their earnings on capital projects that were designed to enhance the sustainable development of their society.
It was only after that time had elapsed, were funds used for investment purposes. Isn’t this a win-win situation? Today, Norway has one of the most modern inventory of completed capital projects in the world that serves to sustainably aid their future national development. Can you imagine the scenario if they had refused to use their oil and gas revenue for national development capital projects?
I find any instance of trying to deny people access to completed capital projects that are designed to enhance the sustainable development of the society, most egregious. Such a situation would serve to threaten the professional output from the Government of Guyana and that will not reconcile with its policy ambitions and promises made to the people in 2020.
After all, in 2020, it was the majority of the people who made that decision to entrust the current team under His Excellency, Dr Irfaan Ali with the fiduciary responsibility to deliver sustainable development for them. As instructed by the people, this is what His Excellency did and continues to do today. The game plan is to continue to deliver betterment for the people, and if it means using some of the Natural Resources Funds to advance these capital projects for the people; so be it!

Sincerely,
Sasenarine Singh