GUYANA PREPARES TO ENTER BIO-ENERGY FIELD

UNCLAS GEORGETOWN 000776

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: ENRG EAGR EAID EFIN ECON GY
SUBJECT: GUYANA PREPARES TO ENTER BIO-ENERGY FIELD


1. (U) SUMMARY: Guyana recently hosted a two-day, regional
agro-energy seminar to discuss the current world bio-energy
market and the prospects of developing bio-fuel opportunities
in Guyana, Barbados, and Jamaica. The Inter-American
Development Bank (IDB) pledged US $850,000 to Guyana to help
jump-start the program. Many speakers applauded the U.S. -
Brazil bio-fuels initiative as a good model for development
assistance on bio-fuels and called for its expansion. END
SUMMARY.


2. (U) On August 6th and 7th, Guyana and the IDB co-hosted
the "High Level Seminar on Expanding Bio-Energy Opportunities
in the Caribbean." The seminar, which commenced with key
presentations from Guyana's President Bharrat Jagdeo and IDB
President Luis Alberto Moreno, featured a dialogue on the
organization and preparation of a regional agro-energy
strategy. The seminar was also attended by Organization of
American States (OAS) Assistant Secretary General Albert
Ramdin and Inter American Institute for Cooperation on
Agriculture (IICA) Director General Dr. Chelston Braithwaite.
At the conclusion of the opening ceremony, the IDB signed a
Memorandum of Understanding (MOU) with the Government of
Guyana, CARICOM, OAS, and IICA to establish and support
Caribbean renewable energy, energy efficiency, and bio-energy
action programs.


3. (U) IDB's Moreno announced that Guyana will receive a
US$850,000 grant to screen potential investors and to build
capacity in the bio-fuel/agro-energy sector. This grant is
among many projects being funded under the IDB's Green Energy
Program - a US$300 million project disbursing grants and
loans for sustainable energy programs and climate change
initiatives. According to Moreno, a number of companies from
Brazil, the United States, and India have indicated interest
in investing in bio-fuel production in Guyana.


4. (U) In his speech to the conference, U.S. Charge d'Affairs
Dr. Fenton Sands commented that "the prospects for economic
growth and development in the region depend increasingly on
unlocking valuable resources to supply reliable, affordable
and clean energy." Pointing to the successful U.S. - Brazil
bio-fuel program, Dr. Sands stated that CARICOM countries can
also develop viable bio-energy agendas. Jeffrey Izzo, Energy
Officer for the U.S. Department of State, also attended and
gave remarks at the seminar. He called the conference
"encouraging" and stated that "the tone here was much more
proactive and forward looking" than previous bio-energy
conferences in the region. Izzo felt that attracting
sufficient private investment for the projects was the
biggest challenge facing CARICOM nations, however he believed
that the conference clearly showed to participants that each
country could tailor a bio-fuels industry to meet its
specific capacities and needs.


5. (U) COMMENT: Guyana's regional agro-energy conference
appears to have been quite successful. It accomplished its
mission by further advancing the bio-energy agenda in the
region and culminated in the signing of an MOU between major
donors and CARICOM. Most importantly, it sent a key message
to its Caribbean participants: that every country in the
region can reap a worthwhile benefit from some type of
bio-fuel industry. END COMMENT.
THOMAS