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Editor, As a staunch supporter of Prime Minister Philip “Brave” Davis, I want to express a sentiment that I believe is shared by many Bahamians...

This is the third crackdown of the week on NGOs and associations. The latest 151 organizations eliminated belonged to the business sector. By Confidencial HAVANA TIMES...

By Democracy Now HAVANA TIMES – Canada’s two major rail freight companies have shut down after failed negotiations with union leaders, bringing an unprecedented rail...

Jagdeo refuses to disclose ExxonM’s “massive” rate of return on investment Aug 23, 2024 News Vice President, Dr. Bharrat Jagdeo Kaieteur News – Vice President, Bharrat Jagdeo, after revealing last week that American oil giant, ExxonMobil was bagging a “massive” return on its investments in the Stabroek Block, has refused to disclose the rate of return the company is charging Guyana. An investor’s rate of return is the percentage of net gain or loss of an investment over a period of time. This is a critical area that can be abused by oil companies to profit more through unfair charges to the country. Jagdeo clarified last week that the company was not using loans to fund the developments in the Stabroek Block; therefore, there was no interest cost added to the cost bank. The Vice President made it clear that the company was using the revenue generated in the block and funding the developments through equity. According to him, the company was earning a “massive” return on its equity. He explained, “If you supply financing, nobody does it and you’re an investor for free, if there is a cost to you then you recover the cost. So whether it comes in the form of a loan or an equity, you get a return. So in this case, Exxon has made it clear there is no interest cost. They are financing the operations from equity and from their own retained earnings. There is no interest cost so don’t you think they get a return on their equity? They’re getting a massive return on their equity and that is exactly what is happening here. They have chosen not to go down the interest route, but they are getting a return on their equity.” Since there is no interest cost, Kaieteur News asked the Chief Policymaker for the oil and gas sector on Thursday to say what the rate of return on the company’s equity is. To this end, Jagdeo explained that the rate changes overtime, adding that the company will enjoy greater returns in the future after the investments have been repaid. Under the provisions of the 2016 Production Sharing Agreement (PSA) Exxon can deduct up to 75% of the monthly revenue generated at the Stabroek Block towards cost recovery (paying back itself for its investment). The remaining 25% is shared with Guyana as profits. As such, Jagdeo said, “If you look at over time, this will grow significantly so it changes over time. Like right now if you look at it, it probably would be relatively low…let’s use US$30B in equity, but they are getting only, they are getting 10.5% of the total sale of oil. The total value of oil per year, when you compare that, based on equity investment, it may seem relatively modest over this period but when we start clearing off the cost bank then that grows enormously.” The Vice President was careful not to disclose the specific rate of return on the company’s investments but noted that it will grow overtime. “Their return on equity will increase significantly overtime so they are gonna get a great return on their equity, massive return on their equity,” Jagdeo said. He added that Guyana too will enjoy a significant increase in revenue after Exxon is repaid. In the meantime, he noted, “There is no doubt that they are making a good, they are gonna get a good return and a lot of it, this return has to do with the fiscal provisions under the 2016 PSA that we have now adjusted in the new PSA so I think its self-explanatory.” Related Similar Articles

Male nurse found dead in hotel room Aug 23, 2024 News …colleague says he was recovering from dengue fever  Kaieteur News – A male nurse was found dead on Thursday morning in a hotel room on Main Street, New Amsterdam, Berbice and one of his colleagues said he was recovering from dengue fever. Deceased: Wilton Longford Benn Dead is Wilton Longford Benn, a 63-year-old Public Health Nurse from Lot 82 William Street, Kitty, Georgetown. Police said in a press release said that about 09:02hrs Thursday, ranks responded to a report of a body found motionless at the hotel. Upon arrival, ranks located the body of Benn in room 238. Emergency medical services were called to the scene and, whilst on the ground, pronounced Benn dead at the location. The cause of death is currently under investigation and is to be determined by a post-mortem examination. According to Holly Trim, a 38-year-old Public Health Nurse, she and Benn are attached to the Maternal and Child Health Department, Ministry of Health. Ms. Trim further mentioned that Benn was recovering from dengue fever. She noted that she and Benn went to Berbice on Wednesday to do a supervisory visit to the different health facilities to see how they are managing the new HPV vaccine. At about 08:45hrs Thursday, a driver for the Ministry of Health went to the hotel to pick up Benn and Trim, who was also staying in a separate room in the hotel to take them to Corentyne to conduct their supervisory visit. Ms. Trim and the driver both knocked on Benn’s room door but got no answer. As such, the driver broke the door, and upon entering, they saw Benn lying motionless in his room. The emergency medical team and the police were informed subsequently.   Investigations are ongoing. Related Similar Articles

Vickram Bharrat says: More incentives for Chinese manganese company, diamond miners’ Aug 23, 2024 News Minister of Natural Resources, Vickram Bharrat Kaieteur News – Minister of Natural Resources, Vickram Bharrat, on Wednesday highlighted the importance of the Government of Guyana (GoG) supporting companies operating in Guyana’s manganese and diamond sectors given the challenges posed by unfavourable global market prices. Speaking at an event, Bharrat stated, “The manganese company [Chinese owned Guyana Manganese Inc. (GMI)] too has been producing in Region One, unfortunately like diamond, the prices in the world market haven’t been too favourable and we have to work with these companies that are engaged in diamond and manganese production.” He further stressed the importance of keeping these companies operational in Guyana, noting, “It is important that we keep these companies in Guyana and work with them incentivising [them].” Bharrat pointed out the critical role GMI plays in local employment, particularly in the Matthews Ridge and Port Kaituma areas. “The manganese company employs almost 200 individuals from Region One, particularly those in the Matthews Ridge, Port Kaituma area and employment in those areas are critical. There aren’t many opportunities as we have on the coast so it is important that work with these companies to ensure that they stay in operation and continue to produce and employ Guyanese.,” he said. In 2022, Guyana resumed exporting manganese for the first time in 54 years.  GMI is a subsidiary of Chinese-owned bauxite BOSAI, a bauxite producer in Linden, Region 10. According to reports, in 2016, Canadian company Reunion Gold sold its Matthews Ridge manganese project to BOSAI for US$10 million. Related Similar Articles

Gov’t promising Amerindians 64 new wells by year-end in hinterland regions Aug 23, 2024 News Kaieteur News – As part of the government’s drive to improve access to potable water, 64 wells will be completed by the end of 2024 in the hinterland regions. This announcement was made by Minister of Housing and Water, Collin Croal, during his presentation at the National Toshaos Council (NTC) Conference, at the Arthur Chung Conference Centre in Liliendaal, on Wednesday. Since August 2020, the government has invested over $4.9 billion in the hinterland, significantly enhancing access to treated water. To date, 95 wells have already been drilled in these regions. In the year of 2024, one can expect 64 wells being drilled. By the time, we are finished with this year, 139 wells are expected to be completed in terms of drilling in four years” Minister Croal announced. Recently, an additional $600 million in supplemental funding was approved to drill more wells and extend water supply systems, bringing the total budgetary allocation for 2024 to $2.1 billion. These projects will be carried out in Regions One, Two, Seven, Eight, and Nine, with completion expected by year-end. In Region One, two wells will be drilled in the Mabaruma sub-district, two in Arakaka and Para, and five in Matthews Ridge, Big Creek, Tassawini, Eye Lash, and Baramita. In Region Two, six wells will be drilled in Wakapoa, Siriki, Kabakaburi, Caria Caria, Santa Mission, and Lower Bonasika Creek, and one well in Kamarang, Region Seven. Currently, wells are being drilled in Santa Cruz, Warapoka, Kokerite, Waikrebi, Kariako, Chinese Landing, and Assakata in Region One. Additionally, several trestles have been tendered and awarded in various communities. Potable water coverage currently stands at 79 percent in Region One, 70 percent in Region Seven, 87 percent in Region Eight, and 94 percent in Region Nine. With this ongoing momentum, potable water coverage is expected to reach 93 percent by year-end and 100 percent by the end of 2025 in the hinterland regions. To encourage community participation and generate income, many communities have partnered with Guyana Water Incorporated (GWI) to extend water distribution networks and undertake other projects. Meanwhile, Minister Croal, along with Minister within the Ministry of Housing and Water, Susan Rodrigues on Wednesday, handed over 16 contracts to several village councils for the construction of water supply systems. A total of $13.8 million was allocated to Kopinang, Sand Creek, Kaicumbay, Sawariwau, Capoey, Quatata, Quiko, Quarrie, Yurong Paru, Masakenari, Katu’ur, Kokshebai, Baitoon, Sawarinau, Semonie, and Maruranau. Additionally, Arrau received $9.36 million for community participation, $5.7 million was allocated to Waipa, and $3 million to Falmouth. In total, $32 million will be injected into the village economies. (DPI) Related Similar Articles