The World Bank approved a 20 million USD loan to Guyana to help prepare the country for several risks it is likely to encounter from its mining of oil and gas.
The loan was approved on March 29. Funds will go to Guyana’s Petroleum Resources Governance and Management Project. This will help to “put in place systems to stave off risks associated with being a new oil and gas producer,” the Guyana government explained, stating that the loan will be spent on “addressing governance and management risks from inadequate policy, legal and regulatory frameworks and institutional capacity needed to maximize the benefits from expected oil revenues, and to minimize downside risks associated with oil revenues and growth of the sector.” Also covered are environmental and social risks that require careful and constant monitoring. The funds also provide for investment in environmental damage prevention and in response capacity.