During the National Budget Debates, Minister of Natural Resources, Vickram Bharrat, emphasized that Guyana’s burgeoning Oil and Gas sector is a significant driver of growth and development. He highlighted the industry’s prudent management, asserting that it operates with a high level of transparency and accountability.
Bharrat stated, “Guyana’s Oil and Gas Sector is regarded as one of the best managed oil and gas sectors in the world among new oil-producing countries. Every single new oil-producing country is looking at Guyana as an example.” He revealed that the government is assisting other countries in drafting their Local Content Legislation to follow Guyana’s framework.
He pointed out that shortly after taking office in 2020, the government passed the Natural Resource Fund Bill, establishing a Sovereign Wealth Fund in under a year, which usually takes other nations decades. “We placed accountability on the front burner,” he said, explaining that a prescribed formula now dictates how revenues from the Natural Resources Fund are allocated in the national budget.
Turning to the Mining Sector, Bharrat noted the revival of the Gold Industry and significant investments in the Bauxite Industry, crucial for job creation, especially in Region 10. He defended keeping the bauxite mine in Linden operational, contrasting it with the job losses attributed to the actions of the previous administration regarding RUSAL.
However, APNU Member of Parliament Sharma Solomon sharply criticized the Ministry’s management of the Gold, Bauxite, and Forestry sectors, arguing that there is weak oversight in these industries. He acknowledged that while the non-oil extractive sector grew by 17%, the regions dependent on these resources remain economically and socially underdeveloped.
“Gold remains one of Guyana’s largest non-oil revenue earners, yet oversight of the sector has weakened,” Solomon contended. He lamented the dismantling of previous support systems for small miners, which he claimed had allowed wealth to circulate within local communities.
In addressing the Forestry Sector, Solomon pointed out that timber continues to be extracted from hinterland regions while the infrastructure supporting these communities remains poor.
He also criticized the government’s approach to the Bauxite Industry, suggesting that the return of RUSAL lacks proper consultation with the residents of Region 10, and raised concerns over potential environmental impacts and revenue-sharing arrangements.
“Jobs alone are not development,” he cautioned, reminding the audience of the historical context and experiences of the region’s residents, indicating they would not accept a repeat of past mistakes.
The exchanges during the Budget Debates underscored the ongoing tension between government ambitions in the resource sectors and the calls for stronger accountability and community engagement.
