Pres Ali announces wealth-building plan for citizens

…persons to invest in gas, fertiliser projects, secure future pensions

…says Guyanese can look forward to increased cash grants

The Government has plans to pursue projects that include a national gas company and a fertiliser factory, with the view of not only generating revenue for the country, but also giving citizens a chance to make investments they can earn returns on.
On Saturday during a public meeting in Belle West in Canal Number Two, Region Three (Essequibo Islands-West Demerara), President Dr Irfaan Ali spoke of the importance of persons being registered to receive their National insurance Scheme (NIS) pension when they retire.

President Ali pointed out that that for someone who has made the maximum contributions to NIS, they can receive a pension of $168,000. However, those who are employed in the ‘informal economy’ will be unable to receive this benefit.
“We recognise that many farmers, bus drivers, conductors, casual and seasonal workers, are not registering on the NIS programme. So, they are not allowing themselves to benefit from pension. So, in the next five years, we’re going to come up with a plan to incentivise and help these categories of workers to go on the system and qualify and when they get to 60, they will benefit from this pension.”
“We are going to find an avenue to help you to get on the system. That is what we are about. So that all our farmers, we have to create an enabling environment so that you’ll get on the system. So that you too can benefit from the system. So how do we do this?”
It was at this point, according to President Ali, that wealth creation steps in. The Head of State noted the importance of ensuring that vehicles to wealth creation exist, so that ordinary citizens who participate will feel the need to enter the formal system.
“We have to do this also, by creating opportunities to build and grow wealth. And how are we going to create those opportunities? We’re going to identify a series of small, medium and large-scale projects here in Guyana. And we’re going to coinvest with Guyanese.”
“We’re going to allow you to invest your money here and in the diaspora in these projects that will give you greater returns than you’re getting now. The new fertiliser plant. Everybody will have a chance to invest in that. The national gas company must provide opportunities for every single Guyanese.”
The President added that citizens will also receive training, even at the community level, in financial literacy, addressing a gap in the education of many adults. And while it is a big task, President Ali was confident that it can be done, especially as the Government plans to increase the cash grants it will distribute. He made it clear that citizens must be able to see the importance of investing these grants.
“That is a big task before us. The next five years is to build and create these opportunities that will generate wealth at the individual, household, community, region, and national levels,” President Ali said.
Vice President (VP) Bharrat Jagdeo had previously reflected on ways in which the citizens of Guyana can be allowed to invest their own money in the oil and gas sector. Over in Suriname, the state-owned oil company Staatsolie had issued bonds that citizens can invest in, with a view of financing an offshore oil project.
Citizens can purchase a percentage of this bond, which can lead to them gaining significant earnings in much the same way as stocks are purchased on the stock market. During a discussion at the Guyana Energy and Supply Chain conference, Jagdeo had lauded Suriname’s initiative and had noted the possibility of Guyana itself going this route. There has also been talk of the Government underwriting investments to ensure returns for the citizens.
When it comes to gas, the Government has been actively exploring ways in which it could monetise this resource, and has contracted US-based company Fulcrum LNG to develop these monetisation options.
The company is expected to work in a tripartite arrangement with the Guyana Government and ExxonMobil to develop another potential gas project, following on the heels of the Gas to Energy (GtE) Phase 1 Project.
Guyana’s Stabroek block is held by US oil company ExxonMobil and its other joint venture partners including Hess and CNOOC. The Liza Phase one and two, as well as the Payara development, where Exxon is the operator, are currently the only oil developments producing oil.
While the oil blocks are overwhelmingly held by private companies, there has been talks of the Government of Guyana collaborating with other countries to develop future blocks.