…funds for housing development, UG student loan-write off also sought
The Government has approached the National Assembly, seeking its approval for more than $84 billion in supplementary funds for projects that range from the Gas-to-Energy (GtE) Initiative to money for the highly-anticipated $100,000 one-off cash grant initiative.
During Monday’s sitting of the National Assembly, the People’s Progressive Party/Civic (PPP/C) Government presented two financial papers to account for and seek supplementary advances of money. The first paper, financial paper No. 3 of 2024, that was laid by Finance Minister Dr Ashni Singh, pertains to an advance of $456.8 million made from the contingency fund between November 7 and 22, 2024.
These funds were used for payment of increased security charges in Regions One (Barima/Waini) and Six (East Berbice/Corentyne), and the Ministry of Education. Additionally, monies were advanced for the Guyana Office for Investment (GO-Invest) and the Protected Areas Commission.
The second financial paper, No. 4 of 2024, that was laid pertains to a sum of over $84 billion being sought. According to a statement from the Ministry of Finance on Monday, $30.5 billion from this amount is for the commencement of the $100,000 cash grant initiative.
President Dr Irfaan Ali had announced back in October 2024 that Guyanese 18-years and older will receive the one-off cash grant. As part of efforts to ensure a robust and transparent process that upholds the integrity of the cash grant initiative, the Government of Guyana has implemented strict measures. These measures include persons having to register, individuals must present their valid National Identification Card (ID) or valid passport.
According to the Government, photocopies of these documents will not be accepted. These official documents are the only acceptable forms of identification used to confirm that the applicant is a Guyanese citizen aged 18 or older, making them eligible to receive the cash grant. Registration for the cash grant has, in fact, already started in some areas.
Gas-to-energy
Meanwhile, another $25.3 billion is being sought for the transformative GtE Project. Already, significant progress has been made on the project, which consists of the construction of 225 kilometres of pipeline from the Liza field in the Stabroek Block offshore Guyana, where Exxon and its partners are currently producing oil.
It features approximately 200 kilometres of a subsea pipeline offshore that would run from Liza Destiny and Liza Unity Floating, Production, Storage, And Offloading (FPSO) vessels in the Stabroek Block to the shore. Upon landing on the West Coast of Demerara (WCD) shore, the pipeline would continue for approximately 25 kilometres to the Liquefied natural gas (LNG) plant at Wales, West Bank Demerara (WBD).
In last year’s national budget, the project received a $43.3 billion allocation in addition to the $24.6 billion injected into the start-up of the transformational project. And this year, some $80 billion was allocated to advance the project.
The Guyana Government has envisioned the startup of the GtE Project by 2025, thus realising its commitment to deliver cleaner, cheaper, and more reliable energy to the population… particularly since it will slash electricity costs by half.
Housing & Education
Under the Ministry of Public Works, $138 million was sought for the Demerara River Bridge. And with the Government looking to complete a number of new and improved regional hospitals, a sum of $4.5 billion was also sought for the Ministry of Health.
The Ministry of Finance explained in their statement that this money is for advancing construction of the six regional hospitals in Lima, De Kinderen, Diamond, Enmore, Bath and No. 75 Village. Additionally, the money will be used to initiate works on regional hospitals at Lethem, Moruca and Kato. Further, $3.6 billion is being sought to support the provision of drugs and medical supplies.
Meanwhile, the Ministry of Housing and Water sought $6.5 billion for its housing development infrastructure drive. Under the Ministry of Education, approval was also sought for an amount of $1.2 billion to support the operations of the University of Guyana.
“It would be recalled that, also in October, His Excellency President Irfaan Ali announced that starting January 2025, tuition fees will be completely abolished at the University of Guyana (UG),” the Ministry of Finance reminded in their statement.
Current funds were also sought all ten administrative regions, with region 10 accounting for the largest provision at $134.3 million for additional security charges. According to the Finance Minister in his presentation, these papers will be debated in the National Assembly on Wednesday, November 27, after the next sitting gets underway.
“In relation to the aforementioned financial papers, that is to Say Financial Papers Three and Four of 2024, Mr Speaker I would like to name Wednesday, November 27 as the date for the said papers to be considered,” Singh said.
The last time supplementary financing was sought from the National Assembly was in August 2024, when Financial Papers Numbers One and Two were presented during the 84th sitting of the 12th Parliament.
Some $16 billion was sought by the Government for the Guyana Power and Light (GPL), specifically $4 billion from Financial Paper one and a $12 billion Supplementary request in Financial Paper two. In addition, the administration had sought $1.1 billion for additional resources to support electricity companies in Linden, Lethem, Mabaruma and Matthew’s Ridge.
Further, the sum of $9.5 billion was requested for Guyana Sugar Corporation (GuySuCo). In the infrastructure sector, an additional $904 million was sought for the construction and rehabilitation of hinterland roads and $600 million for the completion of infrastructure for the critical supply of water to these far-flung communities were also requested. (G3)
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