The Government of Guyana has secured US$20M from the World Bank to support capacity building for Petroleum Resources Governance and Management.
According to the Ministry of Finance, the loan was approved on March 29, 2019, and is expected to enhance the transparency, governance, legal, regulatory and institutional frameworks for the oil and gas sector.
Cognizant of the risks associated with being a new oil and gas (O&G) producer, the Government negotiated the loan to maximize the benefits from expected oil revenues and minimize downside risks associated with oil revenues and growth of the sector, a statement from the Ministry noted.
The loan is expected to benefit “present and future generations [and] the environment and local communities.”
The Government said it is keen to invest in strengthening its institutions and building capacity to manage the incoming resources.
As such, the Project envisages a review and update of Guyana’s legal and regulatory frameworks for the sector. I
Institutional capacity to oversee and manage the O&G sector in the various relevant government ministries, commissions and other departments will be created using consultants, initially, but with a view to ensuring local personnel are trained to replace these technical advisers over time, the Ministry said.
Guyana is expected to begin oil production in early 2020.
