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Norton confident in PNCR’s ability to change terms of ExxonMobil oil deal
Norton confident in PNCR’s ability to change terms of ExxonMobil oil deal
Oct 12, 2024
News
…says terms already modified
Kaieteur News – Leader of the Opposition and the People’s National Congress Reform (PNCR), Aubrey Norton is confident in his party’s ability to engage the operator of the Stabroek Block, ExxonMobil Guyana Limited (EMGL), upon taking office in 2025, to effect changes to the 2016 Production Sharing Agreement (PSA).
Leader of the Opposition and PNCR, Aubrey Norton
On Friday during his weekly press conference, the Leader was asked to comment on the recent statements made by EMGL’s President and Country Manager, Alistair Routledge who said on Wednesday that the company has no interest in invoking the provision in the PSA which allows for renegotiation.
Norton however sought to read out the provision in the contract to make the point that irrespective of what Exxon says, changes can be made to the agreement.
Article 31.2 of the Exxon contract states, “This Agreement shall not be amended or modified in any respect except by written agreement entered into by all the Parties which shall state the date upon which the amendment or modification shall become effective.”
To this end, Norton reasoned, “Clearly this article opens the door for us to engage the contractor. When we arrive at that stage where we engage the contractor, we have people that are skilled in negotiations.”
He also pointed to the importance in timing, stressing that advantage must be taken at a time when talks are more likely to bear fruit. Furthermore, Norton said, “We believe at the time, regardless of what is said now, there will be scope to engage the contractor and make changes.”
“There is evidence that changes were made already so there is precedent. I accept that Mr. Routledge has to take a position in keeping with his company’s mandate. Our task is to represent the people of Guyana. We will do that and when we come to that bridge, we will cross it and we believe we will cross successfully,” the leader added.
It was reported that an addendum was made to the contract to assert that royalties paid by ExxonMobil to the government of Guyana will not be recovered. Additionally, Vice President, Bharrat Jagdeo had made it clear that while the contract allows for audits to be conducted within two years, Exxon must allow access to the auditors beyond this timeframe. In fact, he even threatened that “brick would rain on Exxon’s head” if the company did not agree to this change.
Moreover, the Opposition previously argued that the Gas-to-Energy (GTE) project required a feasibility study for the utilization of gas, however this was never conducted.
Three weeks ago, Norton unveiled the PNCR’s 20-point plan to manage the sector if elected in 2025 to govern the country. Key among his plans was a top-to-bottom review of Exxon’s oil deal, signed by the former A Partnership for National Unity/ Alliance For Change (APNU/AFC) administration.
EMGL’s President during a media conference this week in an invited comment told reporters that he was open to discussions with the party on the contract. He however made it clear that the party had no intentions of invoking the contractual provisions to change the deal.
Routledge said, “We always welcome engagements to look at the agreements to understand the agreements, to understand our operations.” He however noted, “We have no interest to invoke that article. As I say we have made US$55B worth of commitment to the country. To go back and to undermine the basis of that basis of that investment would seriously challenge any future investments.”
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Lack of feasibility and environmental studies for Gas-to-Energy project flagged by AFC in meeting with US State Department
Lack of feasibility and environmental studies for Gas-to-Energy project flagged by AFC in meeting with US State Department
Oct 12, 2024
News
Kaieteur News – The Alliance For Change (AFC) recently raised concerns over the lack of feasibility and environmental studies for the government of Guyana’s (GoG’s) US$2B Gas-to-Energy (GTE) project, in a meeting with the United States Department of State.
An artist’s impression of the Gas-to-Energy project
Leader of the party, Nigel Hughes during a press conference on Friday said the AFC addressed the project, highlighting the lack of adequate studies, citing that this approach has been applied to other major projects.
“In relation to the gas to energy project we did say that we were concerned that this was an approach that the government had adopted across several projects but particularly with the gas to energy project we were concerned that there was no feasibility (study), we were concerned that they would be approaching a financial institution like (US) EXIM Bank without any feasibility work being done,” Hughes explained.
The government had applied to the US-EXIM Bank in April 2023 for a US$646 million loan to aid in the construction of the Natural Gas Liquids (NGL) facility and the 300-megawatt power plant. Another key component of the project- a 250 kilometers pipeline- to transport the gas is being constructed by American oil giant, ExxonMobil. The pipeline is expected to cost approximately US$1B.
Hughes noted that the party indicated to the US State Department that earlier studies conducted by the previous government identified several optimal locations for the project; however, the Wales site, on the West Bank of Demerara was selected, though not highlighted as an option by the Consultant, at the time.
In addition to the GTE project, Hughes said he also raised the need for a new electoral list; the use of biometrics; government’s approach to the financial management of the country, especially in pursuing projects which were not backed by feasibility studies. He said it was also brought to the attention of the US State Department that none of those major projects were discussed in the National Assembly.
Hughes said the AFC made it clear that there was a real risk that this continued attitude by the government could lead to jeopardizing Guyana through excessive borrowing and lack of feasibility studies.
Meanwhile, Chairman of the Party, David Patterson added that concerns were raised about the ongoing registration activities by the Guyana Elections Commission (GECOM), particularly with regard to reports of Venezuelan migrants being registered.
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‘Guyanese Critic’ fails to advance construction 8 months after receiving $160M advance for Belle Vue Pump Station – AG Report
‘Guyanese Critic’ fails to advance construction 8 months after receiving $160M advance for Belle Vue Pump Station – AG Report
Oct 12, 2024
News
– Agri. Ministry says project still in contractual timeline
Kaieteur News – The recently released Auditor’s General 2023 Report revealed that eight months after its commencement date, TEPUI Group Inc. – the company closely linked to Mikhail Rodrigues also known as ‘Guyanese Critic’ had no works in progress on its $870 million Belle Vue pump station project.
The Belle Vue pump station project site during a visit by the Auditor’s General Office in August this year.
According to the AG, this was observed during a visit to the pump station project on August 14, 2024. It was reported that the project is being executed by the National Drainage and Irrigation Authority (NDIA) an agency under the Ministry of Agriculture.
The Report stated that an award for the construction of the Belle Vue Pump Station located in Region Three was made by the National Procurement and Tender Administration Board (NPTAB) in the sum of $870.563 million against the engineer’s estimate of $779.199 million.
It was reported that as at August 2024, the sum of $160.894 million was already paid to the contractor who was scheduled to commence the project in January 2024.
According to the AG Report, an examination of the contractor’s bid document and physical verification detailed that the award of the project was first made on August 14, 2023 for the sum $865.544 million which had corresponded with the amount stated in the Contractor’s Bid Form and priced bills of quantities.
It was noted however that this award was rescinded and a second award was made on September 15, 2023 to the same contractor for an increased sum of $870.564 million which is $5 million higher than the sum stated in the contractor’s bid, and which was the price of the NDIA’s Procurement Department priced Bills of Quantities seen in the contract.
In its findings, the AG detailed that an examination of the contractor’s bid submissions revealed that the contractor failed to satisfy nine out of the eighteen requirements set out in the evaluation criteria.
“The contract was signed on 22 September 2023, with duration of eighteen months for completion. According to documents seen, Addendum (№.1) to increase the percentage for advance payment from 15% to 30% was made on 21 September 2023, one day before the Contract Agreement was signed. Addendums №.2 and №.3 were for paying the Contractor for materials on site and changing the Contract start date from 6 October 2023 to 29 January 2024 respectively,” the Report revealed.
In its findings, the Auditor General stated that the contractor was mobilized on site; however, no works were in progress at the time of its visit in August 2024.
It was also disclosed that at the site, only the construction of two earthen coffer dams, excavation works, and demolition of the old existing sluice structure were completed, along with the installation of a test pile.
Additionally, two excavators were seen on site, along with two site office/containers, a water pump and a quantity of timber piles and steel sheet piles at the time, the report noted.
Following reports from the AG’s findings on the pump station project, the NDIA in a release on Friday clarified that the effective commencement date for the construction of the facility was February 6, 2024 and noted that the project is still within its contractual period.
“In accordance with the contract and upon submission of a mobilisation advance bond, an advance of $129,831,525 was paid. Subsequently, works commenced with the construction of cofferdam and the removal of an old deteriorated sluice which was within the footprint of the work area for which interim valuation number one, totaling $31,062,903 was certified by the engineering supervisory consultant following which payment was effected by the NDIA,” the agency provided.
The Authority noted also that as the works progresses, along with the supply of some of the steel sheet piles on site, greenheart piles and the installation of test bearing piles, interim payment number two, valuing $21,615,810 was also certified by the engineering supervisory consultant.
NDIA stated that the contractor is still on site and that the Ministry of Agriculture and its Technical Officers have been meeting with contractor and consultant to ensure that the projects are completed as per contract.
“It must be made clear that the NDIA values transparency and accountability in all its operations. We are committed to providing updates on project progress and addressing public concerns as they arise,” the statement said.
Meanwhile, this publication had reported that the $870 million contract was awarded to TEPUI early last year which saw works slated to be started then. But the project did not begin then due to delays and only started in January this year.
It was reported too that the contract was the subject of an investigation by Public Procurement Commission (PPC) after complaints were raised about the contractor’s failure to meet the technical requirements of the project.
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‘Appointment of Hicken as Police Commissioner would be legally flawed’ – AFC leader
‘Appointment of Hicken as Police Commissioner would be legally flawed’ – AFC leader
Oct 12, 2024
News
Kaieteur News – Leader of the Alliance for Change (AFC) Nigel Hughes on Friday said that the government’s intention to appoint acting Police Commissioner Clifton Hicken to the substantive post would be legally flawed.
Leader of the Alliance for Change, Nigel Hughes.
Hughes when asked to speak to the issue by this publication said that a commissioner can only be appointed if that person was substantively in the post before they retired from the Force.
“I don’t believe you can appoint a commissioner who was granted an extension or who is on contract and then deem them commissioner. I certainly believe that’s legally flawed and believe that this ought to be challenged in court,” he told Kaieteur News.
Further, the AFC leader said that it is not in the interest of the society to have the concerns expressed by the Opposition Leader disregarded particularly when that person has an integral role to play in the selection and appointment process.
“This is not a question of politics. This is a question of upholding the law in the land and it is a question of law and order, and, if you have such strong objections coming from the leader of the opposition Mr. Norton, particularly his lack of confidence in that particular candidate, I believe it’s dangerous waters to persist with that candidate, because what happened is unfortunate for Mr. Hicken (but it) is going to be perceived as the political candidate of the government of the day,” Hughes stated.
Hughes believes that it will be perceived that the government is not interested in appointing a person who would have cross political support as the head of law enforcement. The party leader noted should Hicken be appointed then the citizenry will lose confidence in the Police Force.
“So, you will end up with police officers going into difficult situations where the law ought to be enforced,” Hughes, who is also an attorney said.
Hicken’s tenure as the acting head of the Force was extended by President Ali although he is over the age of 55 – the age of retirement.
The very sentiment was expressed by Retired Assistant Police Commission (ACP), Clinton Conway. In a recent letter to the editor, Conway said to appoint Hicken as the Police Commission after he would have passed the age of retirement would be unconstitutional.
Conway noted that the appointment of a Commissioner of Police and Deputy Commissioner of Police is enshrined in the Constitution of the Cooperative Republic of Guyana. Article 211 (1) of the Constitution states,” The Commissioner of Police and every Deputy Commissioner of Police shall be appointed by the President acting after meaningful consultation with the Leader of the Opposition and Chairperson of the Police Service Commission after the Chairperson has consulted with other members of the Commission.”
Conway said it is pellucid that there is no need for any agreement with the parties for the appointment in question. “The vex question is whether or not the President can confirm Clifton Hicken who has passed the age of retirement as Commissioner of Police,” Conway reasoned.
The retired ASP said the Constitution speaks about appointment, exercising disciplinary control and removal from office of the Commissioner of Police. It does not mention anything about extending the service of the Commissioner of Police after he has passed the age of retirement, 55 years. However, he said the Constitution (Prescribed matters) 27:02 dated 20/09/1967 under the caption,” Age of vacating of office by the holder of certain offices,” gives the President the authority to permit the Commissioner who has attained the age of 55 years to continue in office until he has attained such later age, not exceeding sixty years. Section (b) states: “the President acting on the recommendation of the Police Service Commission tendered after the Prime Minister has concurred on the recommendation, may permit a Commissioner of Police who has attained the age of 55 years to continue in office until he has attained such later age, not exceeding sixty years, as may (before the Commissioner of Police has attained the age of 55 years) have been agreed with the Commissioner of Police.”
No precedent
Conway said it is apposite to note that former Commissioners: Balram Raguber, Laurie Lewis, Floyd McDonald, Henry Greene and Leroy Brummel services were extended, but before they reached the age of retirement. He said according to the legal document alluded to above, a Commissioner of Police cannot be extended or confirmed after he has passed the age of retirement, 55 years.
“The extension or confirmation must be done before the Commissioner reaches the age of retirement, 55 years. Clifton Hicken has passed the age of retirement; hence he cannot be legally confirmed as Commissioner of Police. To confirm him will be unconstitutional, ultra vires, null and void and of no legal effect. I rest my case.”
On Thursday, Vice President Bharrat Jagdeo said that the Attorney General, Anil Nandlall has been instructed to check out the legal ramifications of appointing Hicken.
Speaking at his weekly press conference held at Freedom House Jagdeo said, “I have listened to the Attorney General and I spoke with him in Parliament and I told him that he needs to get more information out about the legality of the process. So first of all, I saw in the comments he made, he dealt with the powers vested in the President, and there is a view that because Hicken has an extension now, he might not be eligible to be confirmed. So that issue needs to be dealt with by the Attorney General…” Jagdeo said.
Jagdeo said the President is required to have meaningful consultation with the Leader of the Opposition but noted that does not mean the opposition leader has to agree with the President.
President Irfaan Ali through Minister of Governance and Parliamentary Affairs Gail Teixeira dispatched letters to the Opposition Leader.
Notwithstanding, Jagdeo said that the AG will assess the law and determine whether the appointment would be lawful. He said he is not of the opinion that it would be an unlawful appointment but in the interest of quieting the “big noise” all checks and balances will be made.
“He [the AG] assured me that we have complied with the process to get the extension done and also the process to have the confirmation also done,” Jagdeo said.
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