Once the gas-to-energy project starts up by year end and fulfills its mandate of slashing electricity costs by 50 percent, some of the generous fiscal incentives granted to the private sector will be revised. President, Dr. Irfaan Ali provided this “heads-up” to stakeholders of the Private Sector Commission (PSC) during its recently held annual dinner.
The president explained that various fiscal incentives continue to be granted to businesses so that they can be competitive in a high-energy cost environment. “…But do not expect those fiscal incentives to remain the same when the cost of energy comes down by 50 percent,” said the Head of State.
“If you’re a serious investor, you would know that this is the time through which you have to benefit from the type of fiscal incentives that are there now and then still benefit from the low cost of energy to come,” shared Ali.
More than likely, he said, the types of investments that are energy-intensive and that carry a fiscal incentive are also investments that have a gestation period of at least 18 months. He said companies have an ample time period now to benefit from the system before it changes.
Ali also urged investors in the agriculture sector to brace for greater benefits as the country will have its first agro-chemical plant by year-end. This he said will be one of the many offshoots from the gas-to-energy project, which will utilize 50 million standard cubic feet of gas per day from the Liza field in the Stabroek Block. He urged them to address their minds to investing in the agro-chemical plant, either solely or in tandem with foreign partners.
