Decision rule for a local oil refinery with no state support

Introduction: Proviso

It is worth repeating: my two previous columns had sought to make it abundantly clear that if a local oil refinery is established, which is wholly owned, managed and operationalized, either separately, or through a partnership (or some other joint arrangement), involving only 1) foreign investors (whether private, state, or some combination thereof), or 2) domestic private investors, this would be acceptable in my judgement, subject to one important proviso or caveat.

That proviso is, there should be no out-of-the-ordinary (or special) support, provided by the Government of Guyana/state to the venture that is designed to secure in a significant way its viability or profitability. Such a venture should be based entirely on commercial criteria. And from that vantage point, it follows there should be: 1) no extraordinary transfer of taxpayers’ funds to the refinery’s financiers, and, specifically, ….

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