Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698073979313.pdf (Guyana)
MID-YEAR REPORT 2 0 1 6 E V I N N A H T O 5 A N A Y U G SAR R Y O F I N D E P E N D E N C E COOPERATIVE REPUBLIC OF GUYANA ELEVENTH PARLIAMENT OF THE COOPERATIVE REPUBLIC OF GUYANA UNDER THE CONSTITUTION OF GUYANA FIRST SESSION 2016 MID-YEAR REPORT Honourable Winston DaCosta Jordan, M.P.

Minister of Finance August 8, 2016 _______________________________________________________ TABLE OF CONTENTS Abbreviations 1.

Introduction 2.

Global Economic Development 3.

Domestic Development A.

Real Sector B.


External Sector C. Monetary Sector D. Fiscal Sector E. Debt Management F. Key Sector Highlights 4.

Economic and Fiscal Risks and Proposed Policy Responses 5.
Conclusion Appendices A1 GDP Growth Rates by Sector A2 Sector Share of GDP B1 Balance of Payments Analytical Summary C1 Monetary Survey D1 Consumer Price Index E1 Central Government Financial Operations E2 Financial Operations of the Non-Financial Public Sector E3 Public Enterprise CashFlow iii 1 2 7 7 14 19 24 37 41 58 64 65 66 67 68 69 70 71 72 E4 Central Government Abstract of Non-Interest Current Expenditure by Chart of Account E5 Non-Interest Current Expenditure by Agency E6 Non-Interest Current Expenditure by Sector 73 75 77 i E7 Central Government Summary of Capital Expenditure by Sector and Type of Financing 79 E8 Details of Expenditure: General Summary by Programme 81 E9 Central Government Abstract of Revenue by Head 87 E10 Central Government Tax Remissions by Category F1 External Debt Stock Summary 88 89 F2 Domestic Debt Stock Summary 90 G1 Expenditure of Key Sectors H1 Status of Projects in the Pipeline 91 92 ii AML/CFT BCGI BOG BOS CARTAC CDB CH&PA CJIA CPI CSEC CTO ECLAC EU FATF FMAA GEA GFC GNNL GNPL GNSC GPL GPHC GPOC GRA GRDB GTA Guyoil GuySuCo GVRTA HEYS HIPC HSH IDB IDEX IMF IFMAS IT MOF MSC NIS NPTBA P.A.Y.E.
PPP PSIP SBB SLED TB TSA VAT WSSIIP List of Abbreviations Anti-Money Laundering/Combatting the Financing of Terrorism Bauxite Company of Guyana, Incorporated Bank of Guyana Bureau of Statistics Caribbean Regional Technical Assistance Centre Caribbean Development Bank Central Housing and Planning Authority Cheddi Jagan International Airport Consumer Price Index Caribbean Secondary Education Certificate Caribbean Tourism Organisation Economic Commission for Latin America and the Caribbean European Union Financial Action Task Force Fiscal Management and Accountability Act Guyana Energy Agency Guyana Forestry Commission Guyana National Newspapers Limited Guyana National Printers Limited Guyana National Shipping Corporation Guyana Power and Light Inc. Guyana Public Hospital Corporation Guyana Post Office Corporation Guyana Revenue Authority Guyana Rice Development Board Guyana Tourism Authority Guyana Oil Company Limited Guyana Sugar Corporation Guyana-Venezuela Rice Trade Agreement Hinterland Employment Youth Service Heavily Indebted Poor Countries Hinterland Sustainable Housing Inter-American Development Bank International Diamond Exchange International Monetary Fund Integrated Financial Management System Information Technology Ministry of Finance Marine Stewardship Certification National Insurance Scheme National Procurement and Tender Administration Board Pay-As-You-Earn Public-Private Partnership Public Sector Investment Programme Small Business Bureau Sustainable Livelihood and Entrepreneurial Development Tuberculosis Tourism Satellite Accounting Value Added Tax Water Supply and Sanitation Infrastructure Improvement Programme iii 2016 Mid-Year Report 1.
Introduction 1.1 This report is prepared pursuant to Section 67 of the Fiscal Management and Accountability Act (FMAA) 2003 that prescribes that a mid-year report shall be produced in a manner and format prescribed as follows: "A mid-year report shall include - (a) an update on the current macroeconomic and fiscal situation, a revised economic outlook for the remainder of the fiscal year, and a statement of the projected impact that these trends are likely to have on the annual budget for the current fiscal year: (b) a comparison report on the out-turned current and capital expenditures and revenues with the estimates originally approved by the National Assembly with explanations of any significant variances; and (c) a list of major fiscal risks for the remainder of the fiscal year, together with likely policy responses that the Government proposes to take to meet the expected circumstances."
1.2 Budget 2016, Stimulating Growth, Restoring Confidence: The Good Life Beckons, was presented to Parliament on 29th January, 2016.

The related analyses and tables contained in this Mid-Year Report 2016 address key issues captured in the Budget 2016 Speech and Estimates as passed by the National Assembly.

They also give a revised economic outlook for 2016, in light of both national and global developments and risks.
1.3 Budget 2016 was notably one of the earliest budgets presented to Parliament in Guyana’s recent history.

It was anticipated that the early presentation would afford Budget Agencies a greater opportunity and more time to execute their annual budgets thereby improving the rate of implementation and chances of success.

Alas, this was not to be and, as indicated in the Report, implementation of the Public Sector Investment Programme (PSIP) languished under the weight of some intractable bottlenecks.
Nevertheless, we continue to identify key policy initiatives, critical to the transformation of the economic landscape, so that economic activities are stimulated, growth is accelerated, and the divide between the hinterland and coastland is reduced as we move to realise the good life for all Guyanese.

1 2016 2.
1 2016 2.

Global Economic Development Mid-Year Report 2.1 The global environment continues to pose risks to Guyana's development, as the country's economy remains dependent on the production of primary commodities whose prices are determined internationally.

The outlook for the global economy during the first half of 2016 was somewhat pessimistic.
The International Monetary Fund (IMF), in its World Economic Outlook, twice revised its projection for 2016 global growth downward since its January update, when growth was forecast at 3.4 percent.

In April, the projection was revised downward to 3.2 percent, in response to weak economic performance in many economies, and on July 19, to 3.1 percent, following the Brexit vote and its attendant impact on global markets.
The effect of uncertainty and turmoil, which were precipitated by Brexit, has been partially mitigated by better-than- expected performance in some key emerging market economies, including China, Russia, and Brazil.
2.2 Apart from the recent effects of Brexit, the slow growth of the global economy has been mainly due to modest growth in advanced economies, continued economic stress in several large emerging markets, the transition of China’s economy from export-led to internal demand-driven growth, and increasing financial turbulence.
Economic growth in advanced economies is expected to fall to 1.8 percent in 2016, following growth of 1.9 percent in 2015, despite lower oil prices and supportive monetary policy helping to aid domestic demand in these countries.

Following Brexit, this projection was revised downwards by 0.1 percentage points.

The United Kingdom’s growth outlook took the largest hit, with projected 2016 growth revised from 1.9 percent to 1.7 percent, and 2017 projected growth from 2.2 percent to 1.3 percent.
In addition to the drag created by the uncertainty of Brexit, advanced economies have been facing stagnant growth due to unfavourable demographic trends and low productivity growth, as well as increasing financial turbulence (which was exacerbated by Brexit) The outlook for the United States was also downgraded, from a projected 2016 growth rate of 2.4 percent to 2.2 percent.
Although the direct effects of Brexit on the United States are expected to be muted, the appreciation of the U.S. dollar, in the wake of Brexit, may have a negative impact on the U.S. export sector.

Notwithstanding the risks, such as those associated 2 2016 Box 1: The Potential Impact of Brexit on Guyana: A Preliminary View Mid-Year Report On Thursday, June 23, 2016 United Kingdom voted in a popular referendum to exit the European Union (“Brexit”).
The result, which was announced on Friday June 24, shook global financial markets.

Market volatility spiked, the British pound fell against major world currencies, and some stocks saw large losses.

While some financial indicators improved in the days after the vote, there are signs that Brexit may have longer-term impacts on the British and global economy.

The Economist Intelligence Unit estimated that exiting the European Union could cost Britain 6 percent of its GDP by 2020.
Although there has been no apparent immediate effect on Guyana’s economy, Brexit has the potential to affect it through several channels.

The most prominent is a decline in demand for Guyana’s exports due to slower growth in Britain and other affected countries.
Britain accounts for about 6.6 percent of Guyana’s exports (data as of 2014), so a significant slowdown there would have a limited impact on Guyana’s total exports, as long as demand from the United States and Canada, which together account for more than half of Guyana’s exports, remains strong.

A longer-term risk is that Brexit may set off a chain of protectionist policies around the world, reducing growth and trade, with serious implications for demand for Guyana’s exports.
Another channel is through falling commodity prices, resulting from diminished expectations for global growth.

However, commodity prices continued their recovery in June, despite prices for some commodities, such as oil, slipping in the immediate aftermath of the vote.

In addition, increased demand for safe assets pushed up prices for gold, a key export for Guyana.

Another major channel through which Brexit may affect Guyana is access to public sector financing.
As investors move to safe assets, borrowing costs for emerging markets and developing economies may increase.

Guyana’s external borrowing comes mostly from official creditors, but if international bond market financing becomes scarce, there may be more competition for the same official financing sources.

So far, however, emerging market bonds appear on average to be benefitting from the trend to lower bond yields, as emerging market bond price indices have risen since the Brexit vote.
on rates advanced Brexit could also affect Guyana’s debt and debt servicing costs through changes in interest rates or exchange rates.

A little more than 16 percent of Guyana’s debt has a floating interest rate.

So far, interest rates have remained low in the wake of Brexit, economy with government bonds even falling below zero.

The Guyana dollar has remained stable against the U.S. dollar, but appreciated against the British Pound.
Although this will result in lower servicing costs on pound- denominated debt, this represents less than 1 percent of Guyana’s debt portfolio.

In summary, it appears thus far that the impacts of Brexit on Guyana’s debt burden will be minimal.
Gold Prices In USD, January to June 2016 Brexit Vote Thursday, June 23 1-Jan 1-Feb 1-Mar 1-Apr 1-May 1-Jun 1-Jul Source: www.tradingview.com 1400 1350 1300 1250 1200 1150 1100 1050 1000 3 2016 with Brexit, increased financial market volatility and slowing demand for their exports, Mid-Year Report economic performance in many developing and emerging economies has been better than expected.
There was no revision to projected overall 2016 growth in these economies, following Brexit, with the forecast remaining at 4.1 percent, up from a growth rate of 4.0 percent in 2015.

In China, expansionary fiscal and monetary policies have led to better-than-expected economic performance, and projected 2016 growth was revised up from 6.5 percent to 6.6 percent, following growth of 6.9 percent in 2015.
The recessions in Brazil and Russia have also been less severe than feared, and rising prices for oil and other commodities have led to better outlooks for some commodity exporting countries.

2.3 The IMF World Economic Outlook projects that the economies in Latin America and the Caribbean region will contract in 2016, following zero growth in 2015.

This was due largely to declines in growth in a large number of commodity-exporting economies.
Economic output is expected to decline by 0.4 percent for the region as a whole.

Commodity-exporting Caribbean economies are expected to contract slightly in 2016.

The slowing of the global economy, low commodity prices, and tightening financial conditions, internationally, continue to impact this region.
In July, the Economic Commission for Latin America and the Caribbean (ECLAC) projected a slightly larger contraction of 0.8 percent in 2016 for Latin America and the Caribbean, with Caribbean countries projected to contract by 0.3 percent.

Suriname and Trinidad & Tobago are the only Caribbean economies for which ECLAC forecasts negative growth, with contractions of 4.0 percent and 2.5 percent, respectively.
Suriname has experienced marked deterioration in its economic conditions since April, when its projected 2016 growth was a positive 0.5 percent as a result of low commodity prices, significant currency depreciation, and lower mining sector output.

Trinidad & Tobago’s economy has also been negatively affected by low oil prices.

Other major Caribbean countries are expected to grow modestly, with growth projected at 1.2 percent in 2016 for Jamaica, and 1.6 percent for Barbados.
St. Kitts and Nevis is expected to have the strongest growth, at 4.7 percent in 2016.

Most of ECLAC’s projected growth rates were revised downwards from their April levels, when it was projected that the region would contract by 0.6 percent.

4 2016 2.4 Global commodity prices showed some recovery during the first half of 2016 with Mid-Year Report the average price of crude oil reaching US$47.70 per barrel in June, 2016 compared with an average of US$36.57 in the month of December 2015.
However, the June 2016 oil price remained below the June 2015 price of US$61.30 per barrel.

The slight recovery in oil prices during the first half of 2016 was attributed mainly to the tightening of global oil supplies.

Similar to the price of oil, the international gold price also showed signs of recovery, reaching US$1,276.40 per ounce in June, 2016.

This was higher than the price of US$1,075.74 per ounce in December, 2015 and the price of US$1,181.50 in June, 2015.
Likewise, the aluminum price increased to US$1,591.15 in June, 2016 compared with US$1,497.20 in December, 2015.

However, despite this progress, aluminum price remains below the price achieved in June, 2015 of US$1,687.73.

Diamond prices, as measured by the International Diamond Exchange (IDEX) diamond index, have declined by about 5 percent from the end of the first half of 2015 to the end of the first half of 2016, though prices may have moved differently for diamonds of varying size and quality.
World sugar prices also recovered slightly in the first half of 2016, from US$0.32 per kg in December, 2015 to US$0.43 per kg in June, 2016, a price more than 50 percent higher than the June 2015 average of US$0.27.

Rice prices also showed signs of recovery, as international benchmark prices, as reported by the World Bank and Oryza, at the end of June 2016 were notably higher when compared with December 2015 and at or above their June 2015 levels.
Prices for timber improved slightly in the first half of 2016. International benchmark prices for logs trended upwards; prices at the end of June 2016 were generally higher than those at the end of June and December 2015.

However, despite slight recovery of commodity prices in the first half of 2016 compared to prices at the end of 2015, financial market uncertainty and the expected slow global growth in 2016 are likely to be a drag on demand for commodities going forward.
2.5 The trend towards recovering international commodity prices has mixed implications for Guyana’s economy.

On the upside, rising global commodity prices present opportunities for Guyana’s commodity export sectors.

Higher gold prices would benefit small, artisanal miners, improving their incomes and enabling them to invest more in their trade.

Higher aluminum prices would flow through to bauxite prices, 5 2016 encouraging growth in the industry.
Increases in prices for agricultural commodities Mid-Year Report would have positive impacts on the rice and sugar sectors.

Securing higher prices is especially important to the profitability of the sugar industry, which has struggled to keep production costs below revenues while adapting to the removal of preferential prices on the European Union (EU) markets.

On the downside, rising global commodity prices are likely to increase the costs of Guyana’s imports as well.
Higher commodity prices could be reflected in higher prices for imported consumption goods, as well as imports of inputs for key sectors, such as fuel, fertilizers, and chemicals.

A rebound in oil prices would likely flow through to higher prices at the pump, and more expensive electricity production costs which could lead to higher tariffs.

On the whole, it is likely that the value of both exports and imports would increase.

6 2016 3.

Domestic Development Mid-Year Report A.


Real Sector 3.1 For the first half of 2016, economic growth reached 2.0 percent, Percent Mid-Year Economic Growth substantially above the 0.9 percent (revised) growth rate achieved during the same period in 2015.

Non-sugar growth rate increased from 1.0 percent in the first half of 2015 to 3.1 percent during the same period in 2016.
The performance of the economy in the first half was buoyed by growth in the mining sector, particularly as a result of increased production of gold, as well as 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 0 1 0 2 - Y H 1 1 0 2 - Y H 2 1 0 2 - Y H 3 1 0 2 - Y H 4 1 0 2 - Y H 5 1 0 2 - Y H 6 1 0 2 - Y H Source: Bureau of Statistics growth in some of the services sector.

Growth in the services sector was boosted significantly from spending on the Jubilee celebrations.
3.2 Overall, the agriculture, fishing and forestry sectors contracted by 10.0 percent, in spite of growth in the livestock, other crops, and fishing subsectors.

Sugar production for the first half of 2016 was a disappointing 56,645 tonnes, or approximately 30 percent below production at mid-year 2015.

This shortfall in production was mainly due to the severe El Niño dry spell, from September 2015 to April 2016, which affected the growth of the ratoon canes which, in turn, resulted in lower yields.
This, combined with the Guyana Sugar Corporation’s (GuySuCo) inability to irrigate the fields, coupled with delays in the acquisition of fertilizer and fertilizer application, further compromised the quality of canes harvested.

Following the shortfall, the industry's target for 2016 has been revised to 218,188 tonnes from the budgeted 231,145 tonnes.

Thus far, tillage, planting, and fertilizer application have been more timely in the second half of 2016, which makes for an improved first crop in 2017.
With respect to restructuring the industry, following the harvesting of second crop canes at Wales later this year, the 7 move towards a pilot scheme for aquaculture and rice will commence as part of the diversification efforts.

3.3 Growth in the rice industry also declined during the first half of 2016, with rice production recorded at 265,818 tonnes, a fall of 26.2 percent compared to production during the same period in 2015.
The El Niño dry weather was the main cause for reduced production levels as it resulted in poor yields and a loss of 3,312 hectares of paddy.

Additionally, farmers suffered from further losses due to the early arrival of the rainy weather (when farmers were about to harvest their paddy) and delayed payments by millers.
With respect to the latter problem, the Guyana Rice Development Board (GRDB) will undertake increased 2016 Mid-Year Report Sugar Production Tonnes 120,000 100,000 80,000 60,000 40,000 20,000 0 HY 2011 HY 2012 HY 2013 HY 2014 HY 2015 HY 2016 Source: Bureau of Statistics Tonnes Rice Production 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 HY 2011 HY 2012 HY 2013 HY 2014 HY 2015 HY 2016 advocacy by hosting several Source: Bureau of Statistics meetings during the second half of 2016 in order to improve collaboration among the bankers, millers and farmers, and their related associations.
The GRDB remains willing to support farmers who opt to take legal action against delinquent millers.

Farmers are being encouraged to adopt improved production practices, to minimise the cost of producing an acre of rice.

The industry is emerging from a price structure that was artificially inflated by the Venezuelan market, to which 30 percent of rice produced was sold, and which served to cushion low world market prices.
The Government (through GRDB) continues to support the industry through the development of more flood-resistant high-yielding 8 2016 varieties, while encouraging both farmers and millers to move towards more value- Mid-Year Report added products, including aromatic varieties.

Production for 2016 has been revised downwards from 687,784 tonnes to 600,000 tonnes.
3.4 In spite of several acres of crops being destroyed during the dry weather, the other crops sector grew by 2.0 percent, in the first half of 2016.

The sector is expected to improve its performance, during the second half of 2016, as the Government continues to promote development of agriculture in the hinterland regions.

In this regard, investment in the savannahs will continue in the second half of 2016, with the production of 100 acres of soya bean targeted before the end of 2016.
Additionally, nurseries will be expanded in Ebini, Hosororo and Kato for the production of spices such as turmeric, black pepper, and ginger, as well as fruits.

3.5 The livestock industry grew by 0.8 percent, in the first half of 2016, compared to the same period in 2015.

During the second half of 2016, expansion of poultry meat and eggs will occur in Regions No.
7 and 8, utilising the Black Giant Poultry Initiative, which will lead to greater productivity of chickens among livestock farmers, improved biosafety in the industry and reduced cost of protein sources for consumers in the hinterland.

In addition, a new hatchery for ducks is expected to become fully operational, in Region 4, during the second half of the year, resulting in increased ducklings being distributed to farmers.
3.6 The fisheries sector grew by 2.1 percent during the first half of 2016, compared to the same period in 2015.

However, the sector continues to be affected by sustainability issues due to overfishing, but Government is taking steps to address the problem by reducing illegal and unregulated fishing.

Guyana recently became a signatory to the Port States Measurement Agreement to prevent illegal fishing, which came into effect in June 2016.
During the second half of 2016, the assessment of the Marine Stewardship Certification will continue in order to reduce bureaucracy and ‘red tape’ within the fisheries industry.

All working trawlers are now equipped with Vessel Monitoring Systems, which will make it easier to confirm that vessels are complying with regulations.

9 2016 3.7 The forestry sector contracted by 13.1 percent during the first half of 2016 Mid-Year Report compared to the same period in 2015.
Several concessions issued by the Guyana Forestry Commission (GFC), were not fully operational.

It is anticipated that the second half of the year will see operators fully mobilised and a corresponding increase in production as compared to the first half, where mobilisation of labour and equipment happened late in the second quarter.
In spite of the contraction the sector is still projected to grow by 2.5 percent in 2016, as relatively dry weather conditions allow for improved access and increased operations.

Also, the GFC, in collaboration with several other agencies, such as the Marketing Council and the private sector, will continue to aggressively seek out additional markets and promote value added products.
Increased production Cubic Metres 300,000 250,000 200,000 150,000 100,000 50,000 - Timber Production HY 2010 HY 2011 HY 2012 HY 2013 HY 2014 HY 2015 HY 2016 combined with a larger market for Source: Bureau of Statistics value-added forestry products, should see rising production of value-added Ounces Gold Production products.
3.8 The mining and quarrying sector grew by 65.7 percent during the first half of 2016, buoyed by significant growth in the gold industry and improved performance from the bauxite industry.

Production in the gold industry reached 322,493 ounces 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 HY 2011 HY 2012 HY 2013 HY 2014 HY 2015 HY 2016 during the first half of 2016, an Source: Bureau of Statistics increase of 94.3 percent over the same period in 2015.
Improved oversight of the industry and granting of concessions to the sector were among factors that contributed to an increase in output.

Production levels 10 2016 for small and medium sized miners rose by 26.2 percent in the first half of 2016 Mid-Year Report compared to the same period in 2015.

The improved international price for gold, combined with the two new gold companies reaching full capacity, is expected to play a major role in enhanced production levels in the second half of 2016.
Overall gold production for 2016 is expected to be at an all time high, rising from the budgeted 450,873 ounces to a projected 650,000 ounces.

3.9 The bauxite industry performed creditably in 2016, with production Tonnes Bauxite Production increasing by 2.9 percent in the first 1,400,000 half of 2016 to 760,689 tonnes, compared with 746,824 tonnes achieved during the same period in 2015.
In 2015, Bauxite Company of Guyana Inc. (BCGI) closed mining operations in Kwakwani as a cost saving measure, and shifted assets to its new Kurubuka 22 mine, which was commissioned in 2015.

The industry 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 HY 2011 HY 2012 HY 2013 HY 2014 HY 2015 HY 2016 Source: Bureau of Statistics was able to increase production, despite receiving a lower average price for exports in the first half of 2016 compared with the first half of 2015.
The international price of aluminum, in June 2016, remained below its June 2015 level, despite improving over the first half of this year.

As a result of the better-than-expected performance, and recovering prices, production for bauxite for 2016 has been revised upwards to 1,680,747 tonnes from the budgeted 1,526,467 tonnes.

3.10 The other mining and quarrying sector grew significantly during the first half of 2016 by 13.9 percent, mainly driven by a 16.7 percent growth in the diamond industry.
Although the growth in the diamond industry was strong, it was weaker than the growth rate of 97.9 percent a year ago when there was some inter-industry shifting from gold to diamond, mainly due to low gold prices in 2015.

Growth in other subcategories of the sector including the sand and stone performed less creditably than diamonds.
11 2016 3.11 The manufacturing sector contracted by 14.1 percent during the first half of 2016, Mid-Year Report largely as a result of the decline in output of rice and sugar.

There were some bright spots in the sector, however, as production increased for products such as rum, stockfeed, and pasta.

Other manufacturing declined by 3.0 percent, as a result of reduced production of pharmaceuticals and aerated beverages.
In the case of the latter, several reports indicate, a major manufacturer is facing reduced market share from higher import of legal and smuggled beverage products.

3.12 Many of the smaller industries within the services sector performed creditably during the first half of 2016.

The financial and insurance industries grew by 5.9 percent and the electricity and water industries grew by 8.1 percent.

Noteworthy performances occurred in the other services category due to the Jubilee celebrations.
This resulted in an increase of 102 percent in visitor arrivals during May 2016 compared to May 2015, which translated to 24,987 visitor arrivals in May 2016, the highest number of monthly arrivals since July 2014.

It is estimated that the spending stimulated over the Jubilee period by the additional visitors resulted in increased activity in the hospitality sector including hotels, restaurants, and craft markets, to name a few.
However, wholesale and retail trade, and construction, which account for approximately a third of the sector, contracted by 11.3 percent and 7.5 percent, respectively.

The increased pace of implementation of the PSIP, in the second half of 2016, is projected to drive increased construction activities, and contribute to the expansion of the services sector.
3.13 The positive growth performances in the mining sector and some services subsectors served to partially offset the below par performances of the agriculture, construction, and wholesale and retail sectors.

As a result the overall growth projection for 2016 has been revised downwards to 4.0 percent, from 4.4 percent projected in Budget 2016.
12 2016 Mid-Year Report G$Millions Services Contribution to Real GDP 30,000 25,000 20,000 15,000 10,000 5,000 0 HY-2011 HY-2012 HY-2013 HY-2014 HY-2015 HY-2016 Electricity and Water Construction Wholesale and Retail Trade Transportation and Storage Information and Communication Financial and Insurance Activities Public Administration Education Health and Social Services Real Estate Activities Other Service Activities Source: Bureau of Statistics 13 2016 B.
External Sector Mid-Year Report 3.14 The overall balance of payments improved to a surplus of US$12.1 million for the first half of 2016, from a deficit of US$58.1 million in the first half of 2015.

The improvement was due to substantial strengthening of the current account, from a deficit of US$135.7 million in the first half of 2015 to a surplus of US$40.9 million in the first half of 2016, as the trade deficit in merchandise goods contracted significantly.
The improvement in the current account more than offset the deterioration in the capital account.

3.15 For the first half of 2016, the balance of trade in merchandise goods recorded a deficit of US$19.1 million, a notable improvement from a deficit of US$250.6 million for the first six months of 2015.
3.16 Exports of merchandise goods (excluding re-exports) rose from a US$ Millions Goods Trade Balance 20 10 0 -10 -20 -30 -40 -50 -60 -70 2015 2016 cumulative US$519.2 million in the January February March April May June first half of 2015 to a cumulative Source: Bureau of Statistics US$666.4 million in the first half of 2016.

Gold exports more than doubled compared with the first half of last year, rising from US$188.3 million to US$390.7 million.
On the other hand, bauxite exports fell from US$53.3 million to US$46.3 million, a decrease of about 13.1 percent, while diamond exports fell by 10.7 percent, from US$9.0 million to US$8.2 US$ Millions Gold Exports 2015 2016 90 80 70 60 50 40 30 20 10 0 January February March April May June million.

Although global prices for Source: Bureau of Statistics 14 2016 aluminum increased over the first six months of 2016, they remained below 2015 levels.
Mid-Year Report The average price for bauxite exported from Guyana was US$61.7 per metric tonne over the first half of 2016, down from US$76.8 per metric tonne in the first half of 2015.

As a result, although the quantity of bauxite exported increased, the total value of bauxite exports was lower in the first half of 2016 than for the same period in 2015.
Similarly, the average price per carat received for Guyana’s diamond exports has fallen, resulting in a lower value of diamond exports, despite higher export volume.

3.17 Sugar exports fell from US$30.4 million for the first half of 2015 to US$20.8 million for the first half of 2016, a decline of 31.4 percent.

Lower sugar exports reflected reduced quantity, due to lower production in the first half of 2016, despite higher sugar prices.
Rice exports were down by a similar magnitude, falling about 29.8 percent, from US$125.7 million in the first half of 2015 to US$88.3 million in the first half of 2016.

Rice exports fell because of lower export quantities and lower prices compared with a year ago.
Although global rice prices improved somewhat over the first six months of 2016, the loss of the Venezuelan market for rice, which paid a relatively high price per metric tonne, resulted in a substantial decrease in the average price received for rice exports.

Among other major exports, shrimp and prawns exports increased in the first half of 2016 compared with the first half of 2015, rising from US$27.0 million to US$29.6 million.
3.18 Merchandise imports1 declined by about 10.1 percent to US$699.5 million in the first half of 2016, from US$777.8 million in the first half of 2015.

Imports of consumption goods rose by about 4.7 percent, from US$188.4 million to US$197.3 million, with strong growth in imports being registered for beverages and tobacco, other semi-durable goods, clothing & footwear, other non-durable goods, and other durable goods.
1 Overall merchandise imports figures as used in the balance of payments are adjusted by the Bank of Guyana to include warehousing costs, consistent with international practice.

Import data for individual subcategories of merchandise imports, which are reported by the Bureau of Statistics, do not include this adjustment.

As a result, the total for merchandise imports in this report is slightly higher than the sum of the estimates of imports in each category.
15 3.19 Imports of intermediate goods fell from US$398.6 million in the first half of 2015 to US$337.8 million in the first half of 2016.

This was on account of reduced import values of fuel and lubricants, as a result of lower global oil prices.
Imports of petroleum products fell from US$200.7 million in the first half of 2016 US$ Millions Mid-Year Report Imports 160 140 120 100 80 60 40 20 0 2015 2016 2015 to US$151.6 million in the first January February March April May June half of 2016, or by about 24.5 Source: Bureau of Statistics percent.

3.20 Imports of capital goods fell from US$186.7 million in the first half of 2015 to US$160.7 million in the first half of 2016.

Capital goods imports fell in almost every subcategory.
Imports of agricultural machinery continued their downward trend, following declines in 2014 and 2015, while imports of building materials and transport machinery declined to near their US$ Millions Fuel Imports 45 40 35 30 25 20 15 10 5 0 2015 2016 January February March April May June Source: Bureau of Statistics 2014 levels.

Lower foreign direct investment and slow implementation of the PSIP may be limiting the demand for imported capital goods.
3.21 The net services trade deficit expanded in the first half of 2016 compared to the same period in 2015, rising to US$113.5 million for January through June 2016, from US$83.2 million for the first half of 2015.

Non-factor services, which include spending on services like shipping, banking, and insurance, accounted for US$16.4 million of the increase in the deficit, as imports of non-factor services increased more than exports.
A 16 2016 large portion of the increase in the non-factor services trade deficit was due to an Mid-Year Report increase of US$10.4 million in imports of insurance services.

Imports of travel services increased by 78 percent in the first half of 2016 compared with the same period in 2015, while exports of travel services increased by 96 percent.

The large increase in both imports and exports of travel services reflects increased travel and tourism associated with the Jubilee.
Factor services, which include earnings from labour and capital, such as interest and dividends, accounted for US$13.9 million of the increase in the deficit.

3.22 Net current transfers showed a decline from US$198.2 million in the first half of 2015 to US$173.6 million in the first half of 2016.

A large component of net current transfers is remittances.

Inflows of workers’ remittances declined from US$123.50 million in the first half of 2015 to US$95.7 million in the first half of 2016.
Lower remittances may be a factor in the weaker performance in some real sector industries, such as wholesale and retail trade, as households have less cash to spend on consumption and investments.

3.23 The capital account balance weakened to a deficit of US$31.2 million in the first half of 2016, down from a deficit of US$9.2 million recorded for the first half of 2015.

The deterioration in the capital account was due in part to lower disbursements to the public sector.
Disbursements to the non-financial public sector fell from US$34.9 million, during the first half of 2015 to US$15.9 million during the first half of 2016.

Lower foreign direct investment inflows were also a factor, falling from US$78.3 million in the first half of 2015 to US$29.2 million in the first half of 2016.

Foreign direct investment inflows in the first half of 2015 were buoyed by substantial investments in the gold sector.
3.24 Official reserves held by the Bank of Guyana remained stable during the first half of 2016, and near the reserve levels of the same time period in 2015.

At the end of the first half of 2016, foreign official reserves totalled US$634.6 million, up slightly from US$626.9 million at the end of the first half of 2015.

Holding ample reserves serves as a precaution against a “sudden stop” in the inflow of foreign currency; for example, a large decline in exports.
In a sudden stop, reserves could be used to avoid having to reduce consumption of imports, which must be purchased with foreign currency.

As such, the 17 2016 adequacy of reserves depends on how much a country imports.

It is generally Mid-Year Report recommended that a country hold enough reserves to cover at least three months of imports.

At the end of the first half of 2016, Guyana’s reserves were equal to about 4.2 months of import cover, above the minimum recommended.
Net foreign assets of the Bank of Guyana increased by US$38.7 million for the first half of 2016, as a result of higher net inflows, including recorded savings of US$25.2 million arising from debt relief granted under the Heavily Indebted Poor Countries (HIPC) Initiative, which more-than covered the balance of payments deficit.
3.25 For 2016, as a whole, the projected current account balance has been revised from a budgeted deficit of US$116.9 million to a surplus of US$72.9 million, reflecting a lower-than-expected merchandise trade balance during the first half.

The improved outlook for current account offsets a downward revision to the capital account surplus.

As a result the overall balance of payments projection has been revised upwards from a surplus of US$46.3 million to a surplus of US$74.6 million.
18 C. Monetary Sector Mid-Year Report 3.26 The 12-month money supply 12 Month M2 Growth 2016 growth rate remained positive during the first half of 2016.

Broad money (also known as M2, which includes cash, demand deposits, and time and savings deposits) grew by 1.8 percent between June 2015 and June 2016.

In June 2015, the 12-month M2 growth rate was 4.9 percent, while in 2014 it was 4.8 percent.
The Bank of Guyana continues its open market policy to sterilize excess 16% 14% 12% 10% 8% 6% 4% 2% 0% 2 1 - n a J 2 1 - y a M 2 1 - p e S 3 1 - n a J 3 1 - y a M 3 1 - p e S 4 1 - n a J 4 1 - y a M 4 1 - p e S 5 1 - n a J 5 1 - y a M 5 1 - p e S 6 1 - n a J 6 1 - y a M Source: Bank of Guyana liquidity through its sales of Treasury Bills (T-bills).

3.27 Consumer price inflation was moderate in the first half of 2016, following a mild deflation in 2015.
The overall consumer price index (CPI) for Georgetown increased by 1.1 percent from December 2015 to June 2016.

The increase was largely due to rising food prices, especially for fruits and vegetables.

Food prices increased by 3.2 percent from December to June.

Producer prices may have been affected by lower harvests caused by adverse weather due to El Niño.

In other major categories, prices either fell, or increased modestly.
Prices for clothing, footwear, housing, and transportation and communication fell from December to June, while prices for furniture; medical and personal care; education, recreation and cultural services; and miscellaneous goods were either unchanged or rose only slightly.

19 3.28 Domestic credit to the private sector grew slowly during the first half of 2016, but picked up in May and June.

Overall, credit to the private sector was 3.9 percent higher in June 2016 than June 2015.
Lending to private enterprises remained relatively unchanged from June 2015 to June 2016, but personal lending was stronger, growing by 19.3 percent over 2016 Mid-Year Report Private Sector Credit, Excluding Mortgages and Credit Cards G$ Billions 136 135 134 133 132 131 130 129 128 127 2016 2015 January February March April May June the same period.
Growth in mortgage Source: Bank of Guyana lending remained positive at 4.9 percent, a relatively slow pace compared with 14.4 percent at June 2015 and 17.0 percent at June 2014.

Although banks remain very well capitalized, bank lending continues to be hampered by risk aversion and high levels of non-performing loans.
Change in Credit, January to June, Selected Categories 2012 2013 2014 2015 2016 Mortgages Personal Private Services Private Mining Private Manufacturing Private Ag -3 -2 -1 0 1 G$ Billions Source: Bank of Guyana 20 2016 Mid-Year Report Guyana Treasury Yield Curve 3.29 Domestic interest rates remained low during the first half of 2016.

The commercial banks' small savings rate was steady at 1.26 Percent 2.5 2.0 percent, from January through June.
1.5 The weighted average lending rate remained stable during the period, ending the first half at 10.46 percent, or 28 basis points below its level in June 2015.

Interest rates on T-bills 1.0 0.5 0.0 Jun-15 Jun-16 0 100 200 300 400 Days to Maturity fell for all instruments across all Source: Bank of Guyana maturity periods.

In June, the interest rate for 364-day T-bills was 2.26 percent, down from 2.38 percent in June and December 2015.
The interest rate on 182-day T-bills was 1.73 percent, down from 1.81 percent in both June and December 2015.

The interest rate on 91-day T-bills was 1.89 percent in June 2016, down from 1.92 percent in December 2015, and equal to the rate in June 2015.

3.30 The exchange rate between the Guyana dollar and the U.S. dollar remained stable in the first half of 2016 at 206.5 Guyana dollars per U.S. dollar, the official rate recorded by the Bank of Guyana since March 2014.
The Guyanese dollar strengthened against the British pound following the U.K.’s vote to exit the European Union (“Brexit”), appreciating about 10 percent between the vote on June 23 and June 30, as the British pound depreciated against global currencies.

The euro also depreciated against global currencies in the wake of Brexit, but the depreciation was much smaller than that experienced by the British pound.
The Guyana dollar appreciated by less than 1 percent against the euro between the vote on June 23 and June 30.

3.31 Commercial banks remained sound and well-capitalized in the first half of 2016.

Banks continued to hold capital in excess of the required minimum capital adequacy ratio of 8 percent.

However, non-performing loans remained of some concern, with a ratio of non-performing loans to total loans of 11.79 percent at end-June 2016.
Non- performing loans within the services subsector represented approximately 33 percent of 21 2016 aggregate non-performing loans.

Loans to households accounted for 22 percent of non- Mid-Year Report performing loans.

The manufacturing and agricultural subsectors followed with 19 percent and 18 percent of the banks’ non-performing loans, respectively.
3.32 Guyana has made substantial progress in strengthening its anti-money laundering framework and addressing the risks associated with regulatory and legislative deficiencies.

Government has successfully implemented the outstanding elements of the action plan it developed with the Financial Action Task Force (FATF), by passing the necessary amendments and regulations, and issuing relevant guidelines and typologies.
Among the measures put in place were, the criminalising of money laundering and terrorist financing; the establishment and implementation of adequate procedures for the confiscation of assets relating to money laundering; the establishment and implementation of an adequate legal framework for identifying, tracing, and freezing terrorist assets; the establishment of effective measures for customer due diligence and enhancing financial transparency; the strengthening of the suspicious transactions reporting requirements; the continuing publication of Money Laundering/Terrorist Financing (ML/TF) trends and typologies; and the implementation of an adequate Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) supervisory framework.
3.33 Additionally, at its recent plenary session held in South Korea in 2016, the FATF confirmed that Guyana has satisfied all the elements of the action plan at a technical level and agreed that an on-site visit should be conducted during the month of September 2016 to verify that the process to implement the necessary reform has commenced and is sustainable.
This development will start the process for Guyana to be removed from the FATF Public Document, in which Guyana has been featured since October 2014.

3.34 As a result of stricter global regulatory standards on AML/CFT several international banks that provided correspondent banking services have opted to derisk, severing correspondent banking relationships with banks across the Caribbean and here in Guyana.
Correspondent banking relationships for two Guyanese banks have been terminated or restricted with the most recent international bank severing relations 22 2016 being Bank of America.

Bank of America has cited the cost of customer due diligence, Mid-Year Report legal/regulatory requirements, structural changes, and for the overall risk appetite, as the main causes for derisking.

This issue continues to attract the close attention of the Bank of Guyana.
The Bank has proactively responded by engaging and dialoguing with national, regional, and international stakeholders as well as helping to encourage other correspondent banks to foster banking relations with Guyanese banks.

Box 2: Derisking and the Necessity of Strengthening Anti-Money Laundering Local banks in small economies rely on “correspondent banks” with a global presence to connect them to the international financial network.
Relationships with correspondent banks allow local residents to receive remittances from abroad, tourists to access cash from their home accounts, and facilitate the transfer of funds needed for trade and investment.

Recently, there has been a global trend of correspondent banks terminating their relationships with their local partners.

Through May 2016, at least 16 banks across five countries in the Caribbean have lost all or some of their correspondent banking relationships.
One reason that correspondent banks may drop their relationships with local banks is concerns about meeting new, stricter rules related to Anti-Money Laundering and Combating the Financing of Terrorism.

This same concern may apply with regards to other regulations as well, such as the tighter prudential regulation that was put in place in many countries following the global financial crisis.
International banks cite excessive compliance costs, unprecedented penalties, vague legal standards and escalating litigation costs as reasons for severing correspondent bank relationships.

When a correspondent bank drops a local market (this could be a bank or a country) over concerns about regulatory compliance or other risks, this is called “derisking”.
When a bank loses its correspondent banking relationships, the impact can be mitigated by putting in place arrangements that allow bank clients to continue to access services.

Clients can be sent to other local banks that still have correspondent banks to complete international transfers.

Alternatively, central banks can process payments on behalf of local banks through their own correspondent banking relationships.
However, as transfers are diverted through fewer channels, the rising volume of transactions may pose a challenge.

Derisking is already affecting Guyana’s financial sector.

In June, Bank of America announced that it would no longer act as a correspondent bank for the Guyana market.

While Guyanese banks are currently served by other correspondent banks, the decision underscores the importance of addressing these perceived risks.
While Guyana has taken recent steps to strengthen its Anti-Money Laundering and Combating the Financing of Terrorism framework, further work remains to be done.

The IMF has urged the Government to accelerate the implementation of the action plan agreed with the Financial Action Task Force.

The Government is also working with the Bank of Guyana to improve financial sector supervision, and to monitor the risk from derisking on local banks.
23 2016 D. Fiscal Sector Mid-Year Report 3.35 At the half year, the overall surplus of the non-financial public sector was $8.8 billion, compared with $17.9 billion in the first half of 2015.

The projected fiscal position for the non-financial public sector for 2016 was revised to an improved deficit position of $29.6 billion, from a budgeted deficit of $38.2 billion (See Appendix E2).
The revision reflects higher revenue collections by Central Government and lower-than-projected capital expenditures by both Central Government and public enterprises.

3.36 At the half year, the overall balance after grants of the Central Government was a surplus of $817.9 million compared with $13,959.7 million at the first half of 2015.

The decline in the surplus was primarily driven by increased expenditures, both current and capital.
During the second half of 2016, it is expected that expenditure will be significantly higher than revenue collections.

The overall deficit projection of the Central Government for 2016 improves to $28.7 billion (4 percent of GDP), from $33.2 billion (4.7 percent of GDP) budgeted in 2016.

The projection for the Central Government current balance is revised to $4.4 billion, from $2.2 billion budgeted in 2016.
Projected revenues for 2016 have been revised up to $179.9 billion, from a budgeted $173.3 billion, while capital expenditure for the year has been revised down to $49.1 billion from $52.2 billion.

(See Appendix E1.)

There was a significant reduction in disbursements of loans to the non-financial public sector, from $11.0 billion in the first half of 2015 to $2.7 billion in the first half of 2016, reflecting the slow pace of implementation of foreign-funded projects.
3.37 Revenue collections at the half year were 9.7 percent higher than the same period in 2015.

Tax revenue collections increased by 6.1 percent, reaching $75.1 billion during the first half of 2016, compared with $70.9 billion during the same period in 2015.

24 3.38 Internal revenue collection increased by $4.9 billion or 15.6 G$ Millions Mid-Year Report Major Tax Revenue Categories 2016 percent, reaching $36.5 billion in the first half of 2016, compared to the same period in 2015.
This half year achievement reflected 57 percent of the annual target.

Of the increase, almost $3 billion was related to arrears and advance payments.
The remainder was primarily attributed to increased collections from the 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 - HY 2011 HY 2012 HY 2013 HY 2014 HY 2015 HY 2016 CUSTOMS AND TRADE TAXES VALUE-ADDED AND EXCISE TAXES telecommunications, manufacturing, INTERNAL REVENUE and construction sectors, and Source: Guyana Revenue Authority significant payments made by a new company from the architectural & engineering sector.
Company tax collections grew by $2.6 billion of which $675.2 million related to a significant increase by one major company in the oil industry and $921.2 million attributed to arrears collections.

Net property tax on private sector companies increased by $261.0 million, supported by measures which targeted the collection of arrears of $99.8 million.

As at June 2016, a total of 292 companies made payments compared with 276 during the same period in 2015, representing a 5.8 percent increase.
Similarly, a total of 925 individuals, including self employed, made payments during the first half of 2016 compared with 887 during the same period in 2015.

3.39 Personal income tax collections grew by $922.3 million during the first half of 2016 compared to the same period in 2015, the main drivers of this growth being a $553.0 million increase in personal income tax (referred to as P.A.Y.E – Pay As You Earn) and a $339.1 million increase in income tax from the self employed.

The growth in P.A.Y.E.


was mainly due to increases in wages and salaries awarded to public servants in the second half of 2015, while the increase in self employed taxes was due to increased compliance, from 8,167 to 10,488 individuals, as a result of measures undertaken by the Guyana Revenue Authority (GRA).

Despite this progress, compliance remains low for self-employed individuals.
Withholding tax grew by $933 million, as a 25 2016 result of increased gold declarations, as well as significant payments made by companies Mid-Year Report involved in oil and gas exploration, marine support activities, and building construction.

However, capital gains tax collections declined by $40.4 million, mainly due to lower payments from companies in the real estate industry.
3.40 Customs and trade tax collections rose to $6.5 billion in the first half of 2016, $0.6 billion more than for the same period in 2015.

While the value of imports declined, import duties grew by $928.6 million or 17.3 percent above the first half of 2015.

This was due in part to a decrease in tax exemptions and a change in the composition of imports.

3.41 Value added tax (VAT) collections totalled $17.3 billion during the first half of 2016, 5.0 percent more than the same period in 2015.
VAT on imports declined by $1.4 billion while VAT on domestic supplies increased by $436.4 million.

Declining VAT revenues on imports were due to a fall in imports by the wholesale and retail sector, while significant collections of VAT arrears, amounting to $124.4 million and $74.7 million from the manufacturing and services sectors, respectively, were responsible for the increases in VAT on domestic supplies.
The Government has requested assistance from the Caribbean Regional Technical Assistance Centre (CARTAC) to review the efficiency of the application of VAT for which a mission is due to arrive in the third quarter of this year (Box 3 below provides further insight into this forthcoming mission).

3.42 Excise tax collections reached $14.9 billion during the first half of 2016, a decline of $311.5 million compared to the same period in 2015.
This resulted from a decrease in collections on imports for petroleum products of $428.9 million, tobacco of $71.2 million and alcoholic beverages of $43.5 million which together more than offset increases in domestic collections of which collections on alcoholic beverages rose by $227.7 million.

The reduction was also due to measures implemented during this period.

In particular, policy changes under the Excise Tax Act 2005 (Cap.
82:03), which came into effect on 1st February, 2016, in an effort to support the greening of the economy and protecting the environment included: the removal of Excise Tax (30%) on motor vehicles under four years under 1500cc; and the reduction of Excise Tax from 26 2016 Box 3: CARTAC's Visit to Guyana to Review VAT Structure and Implementation Mid-Year Report The Government in its commitment to ensuring that taxes are fair and equitable continues to make strides to review the application of the Value Added Tax (VAT).
Since taking office in 2015, Government established a Tax Reform Committee which examined the country’s taxation system and made recommendations for improving its efficiency.

In order to inform policy decisions on the way forward with respect to the application of the VAT, a systemic review of the VAT was considered necessary.
A reduction in the VAT without due analytical rigour will possibly cause a significant loss in revenue thereby handicapping the delivery of public services such as health, education, public assistance, and infrastructure.

In this regard, the Government is working with the Caribbean Regional Technical Assistance Centre (CARTAC) to assess the VAT.

It is anticipated that this review will inform the way forward.
The rates of VAT across the Region range from 7.5 percent in the Bahamas to 18 percent in Dominican Republic.

Guyana currently has 177 items that have been zero rated and 11 that are exempt from VAT.

It is anticipated that the review will include both the rate and the base on which VAT is applied to ensure stability of revenue collections, and lowered minimum threshold for VAT.

50% to 10% on motor vehicles under four years old between 1500cc and 2000cc.
Together, these two policy changes on motor vehicles resulted in an increase of 47 vehicles, under this category, being imported.

Effective May 1, 2016, the importation of used and/or re-conditioned vehicles over eight years old from the date of manufacture to the date of importation was restricted.

However, heavy duty vehicles used in agriculture, manufacturing, and industry were exempted.
3.43 Tax remissions for January to June 2016 were $20.7 billion (equivalent to 27.5 percent of tax collections) compared to $26.4 billion (37.3 percent of tax collections) for the same period in 2015.

This $5.8 billion decline in tax remissions is directly due to Government’s review of concessions to sectors, businesses, and individuals, in order to ensure that concessions are in line with the country's development agenda.
The main categories of reduction in remissions were: companies/businesses, $5.5 billion; Ministries and Departments of Government, $430.6 million; and foreign projects, $197.4 million.

However, remissions to diplomats increased by $329.5 million, public officials/officers by $85.1 million, hospitals by $65.9 million, and remigrants, $18.6 million.
27 2016 3.44 Non-tax revenue collections grew in the first half of 2016 by $2.4 billion Mid-Year Report compared to the same period in 2015, representing an increase of 61.1 percent.

Rent and royalties were boosted by the expansion in gold production, resulting in collections moving from a paltry $5.2 million to $2.3 billion.

Fees, fines, and charges grew by $120.5 million or 22.5 percent, resulting from a $75.4 million increase in citizen registration fees.
Dividends and transfers totalled $4.4 billion during the first half of 2016, an increase of $863.3 million compared to collections during the same period in 2015.

This was due mainly to a $1 billion dividend payment from Guyoil in the first half of 2016.

3.45 At the first half of 2016, the non-financial public sector recorded a significantly reduced overall balance after grants of $8.8 billion, down by $9.1 billion compared to the previous year.
This was as a result of a $20.3 billion increase in expenditure in 2016.

This was due to several reasons.

First, the subsidy of $9 billion earmarked for GuySuCo for the whole year, was disbursed in its entirety by end June 2016, because of a deterioration in the corporation’s cash balances that was due to a severe shortfall in production.
The second reason was the early budget, relative to previous years, combined with the anomaly of the first half of 2015, when expenditure was depressed because of the non-presentation of the Budget.

Thirdly, for the first time, the Constitutional agencies’ budgets were voted as a lump sum (both current and capital) by Parliament, affording them the ability to receive their allocation in its entirety, in keeping with Constitutional provisions.
This increase in expenditure during the first half significantly exceeded the increase in revenue collections.

3.46 Non-interest current expenditure amounted to $73.3 billion in the first half of 2016, a 32.9 percent increase when compared to the $55.2 billion expended in the first half of 2015.
Personal emoluments totalled $21.8 billion in the first half of 2016, an increase of 4.3 percent over the same period in 2015, as a result of increased wages and salaries granted in 2015 and an increase in the number of employees compared to end June 2015.

Other goods and services rose slightly, from $15.3 billion, in the first half of 2015, to $15.9 billion in the first half of 2016, mainly due to expenditure associated with the Golden Jubilee celebrations in May 2016.
However, the extent of the increase is 28 2016 masked by the collapsing of the Constitutional agencies into a lump sum from the Mid-Year Report detailed breakdown of expenditure previously.

Transfer payments grew significantly to $35.7 billion in the first half of 2016 when compared to $19 billion for the same period in 2015.
This resulted from transfers of $9 billion to GuySuCo during the review period, the effect of the reclassification of Constitutional Agencies as per legislation enacted in second half of 2015, expenditure related to local government elections, and an increase in pensions of $2.4 billion, of which $1.8 billion related to old age pensions.

3.47 Old age pensioners were granted an increase of 7.1 percent during the first half with effect from April 1, 2016.
In addition, the number of such pensioners catered for rose to 50,000 or by 17.5 percent.

During the second half, Government anticipates that ongoing wage negotiations with the Union will result in another round of increases in wages and salaries.

The report from the recent Commission of Inquiry into the Public Service will serve as a guide for the discussions.
Government has proposed staggered increases and going forward, the adoption of increment-based increases that are linked to performance appraisals.

3.48 Central government’s capital expenditure reached $13.2 billion during the first half of 2016, an increase of 89.4 percent, compared to expenditure during the same period in 2015, when expenditure was constrained.

However, this expenditure reflected only 25.3 percent of the budgeted sum for 2016.
The pace of implementation of projects continued to pose challenges.

The locally-funded projects were beset by a number of problems including delays in the tender and award process.

As a result, only 31 percent of the budgeted sum of $30.6 billion was expended at half year.

With respect to the foreign-funded projects, a mere 18 percent of the $21.5 billion was spent in the first half of the year.
A major factor in this performance was the challenges posed by a number of projects inherited from the previous Administration, including the Cheddi Jagan International Airport (CJIA) Modernization Project, the East Bank and West Demerara Road Projects, the Power Utility Upgrade Programme, the Sheriff Street/Mandela Avenue Road Project and the Water Supply and Sanitation Infrastructure Improvement Programme.
Further, performance was impacted by weak project execution units, delays in fulfilling conditions precedent to disbursement, and contractors’ capacity and 29 2016 capability constraints.

Several actions (which are further discussed in the Section 4) Mid-Year Report have been identified and prioritised to mitigate these delays and accelerate the implementation of the PSIP.

3.49 Government continues to actively work with donor partners to develop and effect investment programmes in key areas.
The potential projects in the pipeline for agriculture, fisheries and forestry are valued at a total of US$40.45 million.

In the areas of trade, industry and business development, public infrastructure, and energy, Guyana stands to benefit from potential investments in the amounts of about US$13.5 million, US$330 million, US$5 million, respectively.
It is anticipated that several of these projects will be presented to the Executive Boards of their respective donors during the second half of the year (details of pipeline projects can be found in Appendix H1).

3.50 At the half year, the overall balance for the public enterprises, including transfers from the Central Government, was $9.0 billion, up from $4.0 billion in the first half 2016.
The projected end of year position of the public enterprises for 2016 was revised down to a deficit $3.4 billion, from a deficit $5.0 billion at the time of Budget.

(See Appendix E3.)

3.51 For the first half of 2016, the ten public enterprises returned mixed performances.
Positive current primary balances were recorded by Guyana Power and Light (GPL), Guyana Oil Company, Guyana Rice Development Board, Guyana National Newspapers Limited (GNNL), Guyana Post Office Corporation (GPOC), Guyana National Shipping Corporation (GNSC) and Guyana National Printers Limited (GNPL) while Guyana Sugar Corporation, MARDS Rice Complex Limited, and National Insurance Scheme (NIS) recorded deficits.
3.52 The total combined receipts of the public enterprises for the first half of 2016 were $59.4 billion, down from $61.4 billion in the first half of 2015.

While receipts of the National Insurance Scheme increased by $1.9 billion, this was more than offset by a reduction in receipts of the other enterprises of $4.0 billion.

Total expenditures of the public enterprises also declined, falling to $50.4 billion in the first half of 2016, compared with $57.5 billion in the same period in 2015.
Declines in expenditures in the 30 2016 categories of goods and services, wages and salaries, and capital expenditures more than Mid-Year Report offset increases in NIS expenditures and tax payments by the public enterprises.

Expenditures on goods and services fell from $31.7 billion in the first half of 2015 to $26.5 billion in the first half of 2016, reflecting lower costs of petroleum products and cost reduction measures.
Expenditure on wages and salaries fell slightly, from $11.8 billion to $11.4 billion, due in part to a reduction in the number of temporary workers employed by GuySuCo.

Capital expenditure of the public enterprises fell from $4.9 billion in the first half of 2015 to $0.6 billion in the first half of 2016.

Overall, excluding subsidies, the public enterprises had a deficit of $30.3 million in the first half of 2016 compared to a surplus of $160.9 million in 2015 (See Table 1 below).
Public Enterprises - Totals and Ratios: January - June 2015 and 2016 Table 1.
Total Revenue ($'000) Total Expenses ($'000) Profit/(Surplus) ($'000) Profit/(Surplus) ($'000) - Less subsidy to GuySuCo Capital Investment ($'000) Number of Employees (including temporary workers) Taxes to Central Government ($'000) Dividends ($'000) Total Contribution to Central Government ($'000) Gross Profit Margin Gross Profit Margin - Less subsidy to GuySuCo 2015 2016 % Change 61,442.2 59,351.0 57,481.3 50,381.3 3,960.9 8,969.7 160.9 4,919.3 19,625 884.5 0.0 884.5 0.06 0.003 (30.3) 606.4 18,403 1,247.2 1,000.0 2,247.2 0.15 (0.001) -3.4% -12.4% 126.5% -118.8% -87.7% -6.2% 41.0% 154.1% Source: Ministry of Finance (based on reports by the Public Enterprises) 3.53 For the first half of 2016, the Guyana Sugar Corporation (GuySuCo) recorded an operating surplus of $2.9 billion, down from an operating surplus of $3.0 billion for the same period last year.
This surplus is inflated by a $9 billion transfer from the Central Government to finance operations.

Without this transfer, GuySuCo’s true position would be a deficit of $6 billion.

In the future, all Central Government transfers will be shown as financing, instead of being included as part of revenues.
By the end of the first half of 2016, GuySuCo’s production was 56,645 tonnes, a reduction of 23,624 tonnes 31 2016 from the budgeted 80,269 tonnes and also down from 2015’s half year production of Mid-Year Report 81,143 tonnes.

This shortfall was reflected in a decline in export sales, from a budgeted amount of 58,272 tonnes to an actual of 49,278 tonnes, compared with 77,000 tonnes realised in the same period last year.
The El Niño weather phenomenon, which resulted in stunted cane growth and a decline in cane yields from 57.45 tonnes cane per hectare (tc/ha) in the first crop of 2015 to 45.2 tc/ha in 2016, as well as delays in tillage, planting, and crop husbandry operations, were some of the factors that contributed to this state of affairs.

Sales to Caricom and the EU of bagged sugar as well as sales to Caricom of Packaged Gold sugar were the most affected.
The industry continues to be plagued by many problems, including an increase in the prices of several inputs such as fertilizers, and these have had a negative effect on the company’s ability to realise sufficient cash to cover its operating costs.
GuySuCo has taken several steps to address some of its challenges, including negotiating with Tate and Lyle for better prices for sales to the EU market; pursuing studies to inform diversification into areas such as other crops, fruits, aquaculture, rice, dairy and livestock to reduce dependence on sugar; and rationalising its operations for increased efficiency and productivity.
3.54 For the first half of 2016, the Guyana Rice Development Board reported a current primary balance of $67.7 million against the current primary balance of $18.1 million for the same period of 2015.

In the first half of 2016, total receipts were $399.6 million while total current payments were $331.9 million, compared with $486.6 million and $468.5 million, respectively, for the same period in 2015.
It is expected that the GRDB will end the year with a higher current primary balance of $108.8 million, compared with the budget of $55.9 million.

Rice production fell by 26.2 percent compared to production during the same period in 2015.

The El Niño weather phenomenon and delayed payments by millers to farmers were two of the main problems that hampered production in the industry.
To address this situation, the GRDB will be hosting several meetings during the second half of 2016 to build better relationships between the millers and farmers.

In addition, efforts are underway to seek new markets for farmers which have resulted in the commencement of 32 2016 negotiations with the Government of Mexico.

The GRDB will also continue to support Mid-Year Report the industry through the development of more flood resistant high yielding varieties.
3.55 The Guyana Power and Light realised a current surplus of $5.3 billion, for the period under review, compared to $4.5 billion for the first half of 2015.

Importantly, GPL is on target to reverse its budgeted deficit of $6 billion, with the latest forecast for 2016 projecting an overall surplus of $1 billion.
Customers were able to benefit from a 10 percent net reduction in electricity rates with effect from March 1, 2016, as a result of a 5 percent reduction in the tariff rates and a further 5 percent on top of the 10 percent fuel rebate granted in April 2015.

This improved performance has also allowed the corporation to keep faith with its promise to commence repayment to Government on a GOG/GPL On-lending Loan, valued at US$43.3 million, which was granted in May 2010.
The amount scheduled for repayment this year is $1.0 billion, of which $0.5 billion was paid in July.

Production of electricity increased from 360,998 megawatt hours (MWh) in the first half of 2015 to 385,360 MWh at the end of the second half of 2016.

This is in spite of the increased downtime of Heavy Fuel Oil-based equipment, which resulted in greater use of the more expensive Light Fuel Oil in the first half of the year.
Led by growth in residential customers, the customer base grew from 176,309 to 185,550, an increase of 5.2 percent.

3.56 Of GPL’s eight operating standards and performance targets – customer interruptions, voltage regulation, meter reading, issuing of bills, accounts payable, accounts receivable, system losses and average availability, the system losses target was met at the end of 2015.
At the half year 2016, the twelve-month rolling average measuring commercial losses was 14.8 percent, slightly worse than the 14.2 percent at the same period in 2015.

An accelerated schedule of outreach teams to investigate commercial losses would allow for the end-year target of 14.5 percent to be met.

The Power Upgrade Utility Programme, which experienced considerable delays in the tender process, is now slated to commence during the second half of the year.
It will target the upgrading of transmission and distribution lines, thereby reducing technical losses.

In addressing unserved areas, twenty locations have been prioritised, of which, 33 2016 Yarrowkabra (650 lots) has been, targeted for electrification in the second half of this Mid-Year Report year.
3.57 The National Insurance Scheme (NIS) improved its financial position, from a current deficit of $358.7 million at the end of the first half of 2015 to a deficit of $63.3 million for the same period in 2016.

Through increased compliance efforts, the NIS was able to collect $1.7 billion and $18.9 million in outstanding contributions from employers and self-employed persons, respectively, resulting in the growth of contributions by $800 million.
Monitoring of the self-employed and small employers to improve compliance within the laws governing the NIS continues to be a challenge.

Efforts towards the recovery of arrears from delinquent employers and self-employed persons contributed to reduced rates of delinquency.

Thus arrears collections during the first half of 2016 declined by $135.3 million to $450.2 million, when compared with the first half of 2015.
Notwithstanding, delays in legal proceedings against delinquent employers and self-employed persons continue to be of concern.

3.58 However, the increase in the minimum benefit rates was among the factors that caused a rise in the payment of benefits above the budget, which wiped out the gains in collections.
The increase in benefit rates, which took effect from January 2016, included the funeral grant, from $33,385 to $36,725; the minimum rate for Old Age and Invalidity pensions, from $21,352 to $25,000 monthly; and the minimum rate for Survivor’s and Death pensions from $10,676 to $12,500 monthly.

With the increased use of the electronic system to update contributions, there has been faster retrieval of contributors’ information needed for the processing of claims and resolving of outstanding appeals.
3.59 This year marks the 40th anniversary of the Guyana Oil Company operating as a public enterprise and throughout that time it has enjoyed an operating surplus.

In the first half of 2016, Guyoil spent $12.8 billion to earn receipts of $16.1 billion, thereby realizing an improved primary balance of $3.2 billion as compared to first half of 2015.
Although the company sold 619,637 barrels of fuel products, compared to 651,730 barrels in the same period of 2015, the average FOB costs to acquire a barrel of gasoline, diesel, and kerosene in 2016 were US$59.69, US$52.41, and US$52.34, respectively, in 34 2016 comparison to the average FOB cost per barrel for gasoline, diesel, and kerosene of Mid-Year Report US$81.43, US$75.74 and US$78.59, respectively, in 2015.
On the 1st February 2016, consumers benefitted from Guyoil’s reduced retail prices for gasoline to $170/litre from $190/litre, diesel to $150/litre from $161/litre, and kerosene to $90/litre from $120/litre.

However, as the acquisition cost for fuel products increased the company raised the retail price in June 2016.

In August, Guyoil will enter into an agreement with Petrotrin, which will afford lower acquisition costs of diesel and improve its competitiveness.
This, in addition to targeting new customers, is expected to allow Guyoil to end the year in a profitable position.

3.60 For first half year of 2016, the Guyana National Newspapers Limited (GNNL) reported a current primary balance of $52 million, against a deficit of $9.2 million for the same period of 2015.

However, this was still lower than the half year target of $56 million.

The company has increased efforts to ensure that its credit policy on sales is rigorously observed by every major customer.
This had a positive impact as collections increased to $171.6 million, compared with $100.9 million in the first half of 2015.

The company forecasts that its current primary balance will be slightly below the budget of $111 million for 2016.

3.61 In the first half of 2016, the Guyana National Printers Limited (GNPL) realised an overall profit of $1 million from revenues of $143 million.
The period was characterized by significant involuntary machinery downtime, which was a major factor in the company not being able to meet projected revenues of $171 million.

Printing of exercise books for the Ministry of Education continues to be a major revenue earner.

The company was able to reduce the cost of producing this product by renegotiating the price of the paper stock, which reduced from US$1,100 per tonne to US$905 per tonne.
A new marketing strategy was introduced, targeting public sector agencies.

However, GNPL continues to struggle to keep its revenues in line with its expenses and, in some months, has used its cash reserves to cover expenses such as salaries.

The profitability and sustainability of this company are threatened by increases in equipment maintenance costs, involuntary machinery downtime, and building repair costs.
35 2016 3.62 For the first half of 2016, the Guyana National Shipping Corporation (GNSC) Mid-Year Report Limited reported a current primary balance of $66.1 million against the current primary balance of $120 million for the same period in 2015.

Total receipts were $513.2 million in the first half of 2016, a decrease of $133.6 million compared with the first half of 2015.
This shortfall in revenue resulted from lower volume of fertilizer, cement and general cargo handled by GNSC, which declined from 46,506 tonnes in the first half of 2015 to 27,906 tonnes for the same period of 2016.

The forecasted current primary balance for 2016 for GNSC is $228.1 million, down from a budget of $322 million.
3.63 For the first half of 2016, the Guyana Post Office Corporation (GPOC) reported a current primary surplus of $40.2 million against a current primary deficit of $31.9 million for the same period in 2015.

Total receipts increased by $51.1 million to $531.1 million, compared with the first half of 2015.
The GPOC was able to generate $393.2 million in revenues from agency fees, bulk postage, and commissions on money orders, which were $64.9 million higher than the amount received for the corresponding period in 2015.

It is expected that the GPOC will end the year with a current primary balance of $87 million, $45.1 million higher than the budgeted amount.
3.64 During the first half of the year, the public enterprises recorded employment of 18,403 compared to 19,625 at the end of June 2015 (see Table 2 below).

Table 2.
NUMBER OF EMPLOYEES MALE JUNE 2016 FEMALE TOTAL JUNE 2015 TOTAL PUBLIC ENTERPRISE Agriculture Guyana Sugar Corporation (excluding temporary workers) Guyana Rice Development Board MARDS Finance National Insurance Scheme Guyana National Newspapers Ltd Guyana National Printers Ltd Public Infrastructure Guyana National Shipping Corporation Guyana Power and Light Guyana Oil Company Public Telecommunications Guyana Post Office Corporation SUB TOTAL Guyana Sugar Corporation temporary employees Source: Ministry of Finance (based on reports from Public Enterprises as at end June 2016) TOTAL 36 2016 Mid-Year Report E. Debt Management 3.65 Guyana’s total public debt remained sustainable during the first half of 2016, as a result of a debt management strategy that is focused on ensuring that the government's financing needs and payment obligations are met at a minimal cost.
At the end of June 2016, Guyana's total public debt amounted to US$1,552.5 million, reflecting an increase of almost 1 percent compared to the 2015 half year position.

Of the total public debt, external debt amounted to US$1,143.6 million or 73.7 percent while domestic debt was US$408.9 million or 26.3 percent.
US$ Millions Guyana's Total Public Debt 2000 1800 1600 1400 1200 1000 800 600 400 200 0 total debt public Guyana's to the hightest debt peaked in 2012 primarily as a level increased borrowing result of from Venezuela.

Thereafter, it gradually declined during the period 2013 to 2016.
This decline was mainly attributed to to the reduction of Venezuela as the value of rice and paddy exported to that country is offset against the oil debt and also the lower levels of disbursements from Guyana's external creditors.

the debt HY-2011 HY-2012 HY-2013 HY-2014 HY-2015 HY-2016 Source: Ministry of Finance Domestic External 3.66 External public debt declined by 2.7 percent, or from US$1,175.1 million at end June 2015 to US$1,143.6 million at end June 2016.
This decline was mainly due to repayments of the oil debt to Venezuela in the form of rice and paddy shipments.

37 2016 External principal and interest payments totalled US$27.1 million during the first half of Mid-Year Report 2016, of which central government payments were US$24.5 million.

Compared with the previous year, total external debt service payments decreased by 46.9 percent.

This major reduction is a direct result of the decrease in debt service payments to Venezuela.
In July 2015, the PetroCaribe Arrangement and the Guyana-Venezuela Rice Trade Agreement (GVRTA) were halted.

This meant that there were no further shipments of rice and paddy to compensate for the oil debt to Venezuela.

3.67 External disbursements significantly declined during the first half of 2016 in comparison to the same period last year.

At the end of June 2016, actual external disbursements totalled US$14.8 million compared to US$51.0 million at the end of June 2015.
This 71 percent decrease was due to the abrupt halt of the Petrocaribe Arrangement, the completion of the Export-Import Bank of China E-Government Project and reduced disbursements from the multilateral creditors.
In the first half of 2016, the multilateral creditors provided 86 percent of the external financing in comparison to 45 percent over the same period last year, while the bilateral creditors accounted for 14 percent of external disbursements at the end of June 2016 compared to 55 percent at the end of June 2015.
External Disbursements As at June 30, 2015 External Disbursements As at June 30, 2016 55% 45% Multilateral Bilateral 14% Multilateral Bilateral 86% Source: Ministry of Finance 3.68 Notably, Guyana continues to accumulate significant arrears, totalling US$158.5 38 million at June 30, 2016, to its bilateral non-Paris Club and commercial creditors who Mid-Year Report did not participate in the Heavily Indebted Poor Countries (HIPC) Initiative.
The Government continues to actively engage these creditors with a view to settling these debts.

(See Table 3 below for full details on arrears.)

2016 Table 3.
External Debt Arrears by Creditor Category (all figures in US dollars) Principal Arrears end-June 2015 Interest Arrears end-June 2015 Interest Arrears end-June 2016 Exchange Rate Variation Total Debt Outstanding end-June (423.54) 7,778,062.13 0.00 1,310,614.93 283,499.16 129,641.43 13,517.55 0.00 (5,273.95) 0.00 29,859.15 0.00 12,600,024.02 0.00 3,472,891.39 0.00 0.00 (307,722.06) 1,742,205.56 0.00 0.00 0.00 CREDITORS BILATERAL NON-PARIS CLUB India (TATA Industries) Argentina (BICE) Kuwait (KIA) Libya United Arab Emirates Serbia (ex-Yugoslavia) COMMERCIAL Ruston Bucyrus (Gov’t Bond) External Payments Deposit Scheme UK (Barclays Bank) UK(Lloyds Bank Overdraft) USA (ITT) 49,654,394.96 GRAND TOTAL Source: Ministry of Finance NOTES 1.
In October 2015, a decision was taken to remove the debt obligations of India (TATA Industries) and USA (ITT ) from the Public Debt Register until a debt settlement claim is made by the creditor.

2.

Total Debt Outstanding includes principal in arrears and interest in arrears as well as exchange rate variations as as June 30, 2016 106,898,266.39 3,260,345.54 (191,559.57) 158,530,959.46 3.69 At the end of June 2016, Guyana's public domestic debt stock stood at US$408.9 million.
This represents an increase of 11.3 percent or US$41.5 million compared to US$367.4 million at the end of the first half of 2015.

This increase was solely due to the increased issuance of 91-day and 182-day T-bill instruments.

Over the review period, the stock of T-bills increased by 12.0 percent.

Issues of 91-day T-bills rose from US$38.7 million in the first half of 2015 to US$53.7 million in first half of 2016.
T-bills for 182- day and 364-day maturities remain the Bank of Guyana’s principal instrument of monetary control to sterilize excess liquidity in the financial system.

The primary holders of T-bills are, currently, commercial banks, the non-bank financial institutions, 39 2016 and the Bank of Guyana.

Mid-Year Report 3.70 Domestic debt service payments totalled US$4.1 million over the first half of 2016, a marginal increase relative to the first half of 2015.
Given that interest rates for T- bills have been very stable over the last year, the higher interest payments were mainly as a result of greater redemption of the 91-day and 364-day T-bills.

The total redemption of 91-day and 364-day T-bills increased by 3.8 percent to US$227.3 million in June 2016, from US$218.9 million in June 2015.

40 2016 F. Key Sector Highlights Mid-Year Report a.
Education 3.71 In the first six months of 2016, a sum of $15.5 billion, or 38 percent of the total budgeted sum of $40.3 billion, was expended in the education sector.

Of that amount, $1.9 billion was spent on the capital programme.

3.72 Recognising the need to promote the pure sciences, and in an effort to mitigate the dearth of related professionals across an array of fields ranging from the social to the economic sectors, investments were made to equip schools with both teachers and laboratories.
These interventions have contributed to 384 more students opting to sit for the Caribbean Secondary Education Certificate (CSEC) Science Subjects in 2016, reflecting a 9.1 percent increase over the 2015 levels, with 46 percent of the total increase attributed to physics.

3.73 Efforts to integrate Information Technology (IT) in schools continued when 9 IT labs were established in selected primary schools.

Each school received 12 computers, 1 server, 1 printer, 1 projector and power devices.
Further, 6 schools, the National Centre for Education Resource Development, and the Ministry of Education Complex have been connected to the Government’s fibre optic network through the e-Government Project.

An additional 40 sites are expected to be connected to the network in the final half of the year.

This intervention will result in increased access to information, via connectivity, as well as reduced service costs.
3.74 To improve attendance and the health and well-being of students in primary schools, the National School Feeding Programme is being expanded to include a breakfast programme targeting vulnerable communities, for which a pilot is being implemented in nine schools in the communities of Enmore and Buxton, benefitting 657 students.

Further, the sensitisation process for the expansion of the hotmeal programme in a additional 76 schools in Regions No.
1, 7, 8, 9 and the Pomeroon in Region 2 has been completed.

Of the 76 schools have commended building their kitchens.

In addition, 41 2016 over 23,000 of the 28,000 pairs of shoes promised by the Government have been Mid-Year Report distributed during the first half of 2016 in Regions No.

1, 7, 8, 9 and several riverain communities.


3.75 In an effort to augment early childhood education, 36 Early Childhood Master Trainers, 24 of whom hail from hinterland regions, were trained to coach and monitor educators across the hinterland regions.

Additionally, 450 early childhood resource kits and manuals were procured and distribution will commence in the third quarter.
3.76 To assist in promoting the psychological health and well-being of our children, spaces will be made available and counselors hired at an initial 10 schools in Georgetown to provide counselling services for students and parents.

3.77 Focus continues to be placed on ensuring that our children are well-rounded learners.

Technical and vocational education and training continue to be an ongoing endeavour within all technical institutes and training centres.
At present, 202 persons are enrolled in electrical engineering courses, 212 in motor repairs and 111 in Information Technology/Computer Science.

Further, the Kuru Kuru Training Centre has expanded its training programme to include a garment construction course.
3.78 In the area of teachers’ training, the Cyril Potter College of Education (CPCE) is currently involved in curriculum revision for Physical Education, Music, Art and Information Technology, as these programmes will be offered as majors from September.

Overall, it is anticipated that another 415 teachers will graduate from CPCE this year to supplement the over 5,000 trained teachers currently employed in the public school system.
In the area of music education training, significant progress has been made as nine of the ten regions have already received training, through the Ministry of Education, benefitting 90 teachers.

3.79 With regard to the construction, rehabilitation and maintenance of schools and educational facilities, about $1.1 billion was spent in the first half out of a budgeted $4.3 billion.

Works advanced on the Smyth Street Nursery, Parfaite Harmonie, St. Stephen’s Primary, and the Aurora Primary Schools.
The construction of a new wing at the Zeeburg Secondary School, which caters for 800 students, was completed and will be 42 2016 operational in September.

The completion of the Kato Secondary Complex continues to Mid-Year Report face challenges.

A recently completed audit has indicated that the school will require extensive works to make it habitable.

Ongoing construction, rehabilitation and maintenance will continue during the second half.
Facilities earmarked including Bishop’s and St. Rose’s High Schools and science laboratories in Annai, North West, Canje and Woodley Park.

3.80 In the area of tertiary education, significant progress was made with respect to curriculum reform.

Course outlines for Years 1 and 2 for 15 Bachelor’s Degree programmes of the Faculties of Natural Sciences and Technology and the School of Earth and Environmental Sciences were completed.
All faculties are expected to advertise and roll out the revised programmes by September.

The faculties of Agriculture, Forestry, Technology, and Natural Sciences and the School of Earth and Environmental Sciences benefitted from rehabilitation works and essential laboratory equipment are being installed.

Also, an initiative to improve drainage to avoid frequent flooding of the University Campus at Turkeyen commenced.
Finally, the installation of the fibre optic ring and wireless network was completed and testing of the network is in progress.

This will prepare the University to take advantage of modern information technology including software applications, e-learning tools, and digital content repositories.

Box 4: Building Productive Livelihoods for All Guyanese All Guyanese deserve the opportunity to benefit from economic development.

Vulnerable persons often face multiple obstacles to improving their livelihoods.
As such, the Government of Guyana is committed to supporting a comprehensive set of livelihood programmes to help people develop the skills and knowledge to be successful in a growing and changing economy, make connections with mentors in their industry, and access start-up capital for new businesses.
The Hinterland Employment Youth Service (HEYS) programme, managed by the Ministry of Indigenous People’s Affairs, is a new programme taking a comprehensive, innovative approach to supporting livelihood development for disadvantaged youths in rural communities.

The programme incorporates lessons learned from rigorous evaluations of livelihood programmes around the world.
43 2016 Box 4: Building Productive Livelihoods for All Guyanese, Continued Mid-Year Report In addition to providing vocational skills training, the HEYS programme provides a small stipend, access to savings, and mentoring.

By providing both an income and savings, the programme allows participants to focus on their studies, and sets them up to be able to invest in a business after completing the programme.
To date, 302 facilitators have been trained to administer the programme to a target population of 1,976 youths in indigenous communities.

Training has already started in many locations.

The Government also offers job and life skills training programmes to other vulnerable groups.

The Ministry of Communities’ Sustainable Livelihood and Entrepreneurial Development (SLED) initiative provides small business grants and training for women’s groups, youths, and other disadvantaged persons.
To date, SLED has helped 88 youths, including school drop-outs, start their own businesses.

The Ministry of Social Protection has partnered with the First Lady to conduct Self-Reliance and Success in Business workshops for businesswomen in Regions 1, 7, 8 and 9.
The Government also helps aspiring entrepreneurs access start-up capital, through the Micro and Small Enterprise Development Fund, managed by the Small Business Bureau (SBB), which provides grants, loan guarantees, and business training to aspiring entrepreneurs.

So far in 2016, the programme has provided 23 loan guarantees for a total of $71,515,000 in loans, and 20 grants totalling $6,000,000.
These loans and grants support 95 jobs in growth-oriented fields such as internet & computer-based services, diversified agriculture, professional & businesses services, and low-carbon manufacturing.
Going forward, the Government will work towards increasing collaboration across livelihood programmes, and duplicating and expanding the reach of the most successful approaches to livelihoods development Case 1: Pawsome Pets, Guyana’s first registered pet grooming service, located at the Giftland Mall, is a dream which came into reality as a result of the client’s access to finance under the Credit Guarantee Fund of the SBB.
After obtaining a 2-year loan of $3 million in December 2015, at an interest rate of 6 percent per annum, the company was able to purchase equipment and outfit the shop.

This business was launched March 2016, currently employs 3 persons and is repaying its loan as per schedule.
Case 2: Under the SLED’s ‘Be Your Own Boss’ initiative, young persons complete 5 to 13 weeks of life and work skills training (this includes literacy training where necessary), and then go through 2 weeks of entrepreneurship training, which includes a practical group business challenge.

Those who are interested, focused and motivated are invited to complete and submit business plans for consideration for grant funding through the Skills and Knowledge for Youth Employment programme.
A notable success story is Sarah Seuraj, from Rose Hall, Region 6 who after completing the programme, started and manages efficiently a grocery shop with a grant of about $200,000.

Within less than a month, she was able to restock many items such as snacks, and later added new items, such as cosmetics, as requested by her customers.

Sarah is very satisfied with the way her business is operating and plans to expand the shop to include more groceries and an internet café.

44 2016 Mid-Year Report b.


Health 3.81 Of the budgeted $28 billion for the health sector, a sum of $11.5 billion was expended in the first half of 2016.

In an effort to increase the number of qualified professionals and develop human resource capacity in the health sector, an additional $172 million was expended on training.

At half year 2016, in addition to specialist medical professionals, the Government employed 580 medical officers, an increase from the 498 employed in the first half of 2015.
3.82 Progress in improving the overall quality of healthcare continues.

Patients experience increased access to qualified medical professionals, as the number of physicians per ten thousand population has increased from 14.1 in the first half of 2015 to 20.3 in the first half 2016.

In addition, the number of nurses per ten thousand population has increased from 31.4 to 31.8.
Specialty services continue to be expanded with the deployment of additional obstetrician/gynaecologists and one pediatrician in selected regions this year.

3.83 The Government spent $2.9 billion through the half year on essential drugs and medical supplies.

In addition, about $136 million was spent on the procurement of dietary supplies to provide for the adequate nutritional intake for patients within our hospitals.

Work is ongoing to improve systems for procurement and distribution.
3.84 Government has intensified its vector control efforts in the wake of the Zika threat propagated by the Aedes aegypti mosquito.

In the first half of the year, over 380 fogging exercises were completed, as compared with 128 over the entire year of 2015.

In addition, over 7,700 long lasting insecticidal nets were distributed across the country.
These efforts will be further supplemented with an additional investment of over $43 million towards selected interventions, with the aim of minimising the incidence of Zika and other vector-borne diseases such as dengue, malaria and chikungunya.

3.85 Progress was made on the development of the Emergency Suicide Prevention Plan of Action.

Consultations have taken place and a draft action plan was completed.

45 2016 This plan is expected to be completed in the third quarter.
While this is underway, Mid-Year Report training and awareness sessions have been taking place, benefitting over 600 persons in Regions No.

1, 2, 4, 5, 6, 7, 9 and 10.

In this vein, preparations have been made for the roll-out of Guyana’s first Master of Medicine in Psychiatry programme, which will commence in September with an initial cohort of four.
3.86 A sum of $189 million was spent in the first half of 2016 on the purchase and maintenance of medical equipment, while $407 million was spent on the construction, rehabilitation, upgrading and maintenance of health infrastructure across the country for the same period.
This included the construction of a 10-bed Intensive Care Unit for cardiac patients at the Georgetown Public Hospital Corporation (GPHC), where progress also continues to be made towards the completion of the Cardiac Theatre and the extension of the Maternity Unit, where an additional bed capacity of 50 will benefit expectant mothers.

3.87 To facilitate improved accommodation for health professionals in the hinterland, works will advance in Jawalla, Kako, Katchikamo, Port Kaituma, Kato, and Kurukabaru.
Further, while the upgrading of the Diamond and Leonora Diagnostic Centres is expected to commence shortly, works continue at the Port Kaituma Hospital Complex.

The interventions, specifically at Diamond and Leonora, will improve the efficiency of health care service delivery to citizens, by reducing the congestion at our National Referral Hospital, GPHC, and the West Demerara Regional Hospital.
3.88 Other works scheduled for the second half include the upgrading of the Tuberculosis (TB) Step Down Care Facility at the West Demerara Regional Hospital, and the rehabilitation of a building to permanently house the Mental Health Secretariat.

With regard to the modernisation of three select primary health care facilities, designs and building plans were completed and sent to the Government of India for consideration.
Finally, the Government is reviewing options for the way forward for the Specialty Hospital Project, in light of the debarring of the prospective contractor by the World Bank and concerns expressed by the Government of India.

46 2016 c. Housing Mid-Year Report 3.89 In the housing sector, the Central Housing and Planning Authority (CH&PA) offered a special payment plan for beneficiaries of government house lots in residential areas to commemorate our 50th Anniversary.
Approximately 2,800 persons benefitted from this arrangement, which also earned $590 million in revenue for the CH&PA.

Further, the Government is now at the stage of satisfying the conditions precedent required before the first disbursement can be drawn down for the Hinterland Sustainable Housing (HSH) Programme, which is expected to become effective in the latter half of the year.
Community consultations have commenced and will continue in the third quarter in the targeted areas, including Sebai, Whitewater and Kamwatta.

d. Water 3.90 In our drive to increase universal access to potable water in the first half of 2016, Government expended $488 million of the $4 billion budgeted for the sector this year.
During the reporting period, works commenced in areas including Sophia, Mahdia, Mabaruma, Lamaha Park, Timehri, Ann's Grove and Esau – Jacob aimed at improving water supply and distribution.

Implementation during the first half of the year was delayed due to the need to retender for major works under the Water Supply and Infrastructure Improvement Programme, as there were no qualified bidders.

The bidding document was reviewed and restructured as individual lots, which will enable more bidders to qualify.
The restructured tender will be launched in the third quarter.

3.91 In the second half of the year, construction is expected to begin on new wells earmarked for Lima Sands and Port Mourant.

Additionally, the upgrades for Albouystown, Bartica, Kuru Kururu and Port Kaituma will be awarded and commence.

Efforts will also be intensified towards the commencement of three new water treatment plants at Uitvlugt, Diamond and Sheet Anchor.
47 2016 e. Sanitation Mid-Year Report 3.92 At the end of June 2016, $80.3 million was expended in the sanitation sub- sector.

Interventions, including the Solid Waste Disposal Programme, continued to be aimed at promoting a healthier and more eco-friendly environment.

Achievements for the first half included the identification of sanitary landfill sites at Bartica, Mahdia, Lethem, Corriverton and Mabaruma.
Nine tractors and trailers were distributed among all municipalities to assist with the management of solid waste.

To continue to ensure adequate administration of the Haags Bosch Sanitary Landfill, a contract in the sum of $221.4 million was awarded for its operational management.

Meanwhile, an agreement was reached with the previous contractor, B.K.

International, for a settlement in the amount of $1.5 billion.
3.93 Under the Water Supply and Sanitation Infrastructure Improvement Programme (WSSIIP), a total of 1,000 families are expected to benefit from upgraded sanitary facilities within the areas of Cornelia Ida to DeKendren, Diamond to Herstelling, Sheet Anchor to No.

19 to Good Banana Land and central Georgetown.

Preparatory works will commence in the latter half.

Finally, the Government will advance the preparation of the National Solid Waste Management Strategy.
f. Agriculture 3.94 In the agriculture sector, a total of $13.4 billion of the budgeted sum of $20.3 billion was expended in the first half of 2016.

Of the amount spent, $12.3 billion was recurrent expenditure.

The Government has identified agricultural development in the hinterland, particularly the Intermediate and Rupununi Savannahs, as a priority in order to enhance food security and our livelihood, and by extension, the livelihood of CARICOM and the wider Region.
3.95 The Ministry of Agriculture has already engaged donors and investors with respect to several initiatives in the Intermediate and Rupununi Savannahs.

These 48 2016 include the construction of an agriculture station and the revitalization of the dairy Mid-Year Report industry.

With regard to the sustainable harvesting of surface water for agriculture purposes in Region 9, preliminary studies were completed and detailed surveys will be pursued.
For the first time, Region 8 is benefitting from budgetary allocations this year to support agriculture.

Interventions are being made to improve the production of rice, cassava, poultry and cattle.

Further, 260 farmers have received training in areas, including farming techniques, pest and disease control, and food preservation.
3.96 In the second half of the year, initiatives in the Ebini area will commence, including the construction of a plant nursery and bridges, rehabilitation of staff quarters, and the expansion of orchard crop production by an additional 10 acres to serve as a model for the potential investors in the savannahs.

In addition, 2 agriculture extension officers will be permanently placed in this Region to support agriculture development.
3.97 In the fisheries sub-sector, measures are in place to ensure that sustainable harvesting practices are applied and conflicts are reduced among the different gear types and vessels.

The Seabob Working Group is active in ensuring that all is in place for the assessment to begin for the Marine Stewardship Certification (MSC).

A Seabob Management Plan and Code of Conduct were completed and will be submitted to Caribbean Regional Fisheries Mechanism in the third quarter of 2016 for external review.
g. Infrastructure Roads and Bridges 3.98 During this reporting period, a total of $4.1 billion of $14.4 billion was spent on advancing infrastructure capital and maintenance projects.

Of this sum, $3.9 billion was spent on roads and $229 million on bridges.

The sum of $1 billion was expended on the West Demerara Road Project.

To date, the first asphaltic concrete levelling course was 49 2016 completed for the existing pavement from Hydronie to Uitvlugt.
Works have Mid-Year Report commenced on the construction of reinforced concrete drains in selected locations.

Additionally, works progressed on the East Bank Demerara Highway while the upgrade of Carifesta Avenue, to include a median, street lighting and widening, commenced.

The long-awaited upgrade of the Sheriff Street/Mandela Avenue carriageway will be retendered and a contract is expected to be awarded in the latter half of the year.
3.99 As Guyana continues to expand agricultural output to meet its national and regional objectives, a number of farm–to-market access roads and dams have been identified as inadequate in facilitating agricultural production and development.

To address this, the Government completed upgrades of access roads at Parika, Ruby and Laluni, expending $435 million in the first half of 2016.
Over 9,500 farming households, comprising 35,000 persons, now have improved access to farmlands, thereby contributing to increased and sustainable agricultural production.

3.100 Bilateral negotiations with the Government of India for the bypass highway linking the East Coast and East Bank of Demerara have come to fruition with the signing of a loan agreement in March 2016.
The Government of Guyana is working with the Government of India to identify a shortlist of nominees to review the feasibility study for the bypass.

The feasibility study for a new Demerara Harbour Bridge will commence in the latter part of the year.

3.101 Public-private partnerships (PPPs) have the potential to expand the resources available for public sector investment, in addition to other benefits (see Box 5).

However, good PPP management requires human and institutional capacity.
The Government has embarked on a number of institutional strengthening efforts to build capacity in the area of managing PPPs, and is also committed to building a “PPP Core Team”, developing a viable pipeline of potential projects, and establishing a PPP policy.

50 2016 Box 5: Benefits of Public-Private Partnerships Mid-Year Report A Public-Private Partnership (PPP) is a venture that is funded and operated through a partnership between the government and one or more private sector actors.
Although they can be structured in various ways, the private entity commonly secures financing for the project, in return for the rights to operate and, in some cases, own the productive asset.

In addition to providing access to new capital, private sector involvement can have additional benefits, such as more on-time project completion, higher quality project performance, and better maintenance of assets.
To be a good candidate for a PPP, a project should use proven technology to deliver a clearly defined service.

It must also be able to generate a revenue stream to make it financially viable and attractive to investors.

Infrastructure projects, such as roads, bridges, water and sanitation, electricity, and airports, are often good candidates for PPPs.

However, they can also be used in less traditional sectors, such as health and education.
Investments in airports or shipping ports are often attractive to international investors, because of their ability to generate revenue in U.S. dollars, in addition to local revenue.

The Caribbean Development Bank (CDB) estimates that Guyana, like many Caribbean countries, will have significant infrastructure investment needs between 2015 and 2025.
Despite the fact that Guyana’s public capital expenditure is high relative to its GDP, Guyana still has a projected financing gap of US$ 31 million from now to 2025.
Table A. Guyana Infrastructure Financing Needs, 2015 to 2025 Total Infrastructure Investment Needs US$ 621 million Electricity Transport Water and Sanitation US$ 353 million US$ 36 million US$ 231 million Estimated Public Capital Expenditure US$ 590 million Financing Gap US$ 31 million Source: Caribbean Development Bank PPPs could serve as a tool to leverage additional resources for infrastructure development, and improve the quality of delivery.
Some infrastructure investments that might be good candidates for PPPs in Guyana include toll roads and bridges, green energy generation, and improvements to irrigation systems.

PPPs could also be used in non-traditional sectors, such as education and health.

In education space, PPPs could be used for the procurement of new educational facilities.

In health, PPPs could be used to build and operate new health facilities to reduce waiting times and improve patient care.
PPPs may be especially useful for the provision of advanced health services requiring specialised medical equipment.

51 2016 Air and River Transport Mid-Year Report 3.102 For the first half of 2016, over $669 million of the $5.2 billion allocated to the air services industry for the year was expended.

Government continues to place emphasis on the rehabilitation and maintenance of airstrips across the country, in an effort to bridge the divide between the coastland and hinterland.
Works commenced on the upgrade of the Fairview airstrip, while works programmed for the second half of 2016 include the rehabilitation of airstrips at Eteringbang, Annai, Paramakatoi, Kurupung, Kato, Kopinang and Monkey Mountain.

3.103 Due to the need for a review of the design of the Terminal Building at the Cheddi Jagan International Airport (CJIA), disbursements under the CJIA Extension Project were temporarily affected.
Since then, Government has successfully completed the revised preliminary design, allowing for the recommencement of disbursements and the acceleration of implementation.

Approximately $393.5 million was spent on the extension of the CJIA runway during the first half of 2016.

For the second half of the year, it is expected that 90 percent of the runway will be sand filled and works will commence on the extension of the terminal building.
The construction of homes to relocate squatters will also be completed in the third quarter.

The release of over US$16 million was unlocked in July 2016.

3.104 With regard to river transport, service delivery through our waterways is being enhanced.

The residents of Parika and Supenaam can now benefit from improved transportation links with the completion of the docking of MB Sabanto.

Further, MV Makouria and MV Kanawan are to be docked in the second half of the year.
The rehabilitation of stellings at Parika and Bartica, and the dredging of the Demerara and Essequibo Rivers, are also expected to be completed in the second half of the year.
52 2016 Box 6: Partnership with the United Kingdom Caribbean Infrastructure Fund Mid-Year Report The United Kingdom Caribbean Infrastructure Fund (UKCIF) was launched in Guyana in April 2016 with the aim of providing critical infrastructure which will lay the foundation for growth and prosperity, poverty reduction and increased resilience to climate change in the Caribbean.

Guyana is set to benefit from £53.2 million in grant resources under this Fund.
The proposed UKCIF programme in Guyana is targeted at achieving three outcomes: improved access to road, riverain and air infrastructure; improved access to potable water; and improved sea defences.
These outcomes will be accomplished through the rehabilitation of selected aerodromes in the hinterland, the construction of a bridge at Mackenzie/Wismar, the rehabilitation and improvements to selected water supply infrastructure, and the rehabilitation of selected water transport infrastructure and sea/river defences.

The Fund is being administered by the Caribbean Development Bank (CDB) through a Memorandum of Understanding with the United Kingdom’s Department for International Development (DFID).
The CDB, in collaboration with DFID, have mounted missions to Guyana aimed at scoping the above-mentioned programmes.

A Terms of Reference was drafted to procure consultancy services for the design of selected interventions.

Sea and River Defence 3.105 In the first six months of the year, a total of $889 million of the budgeted $2.5 billion was expended to further strengthen sea and river defence infrastructure against flooding and erosion.

Works are currently ongoing in Regions No.


2, 3, 4 and 6, in areas such as Waller’s Delight, Orangestein, Thierens, Friendship, and Overwinning.

In addition, the European Union has supported the development of a new Coastal Engineering Design Manual, which articulates standards for designing sea and river defences specific to Guyana.

It provides practical guidance for limiting the negative impacts of rising sea levels and climate change.
3.106 During the latter half of 2016, works will commence on sea and river defence projects in areas such as Arthurville, Moorfarm/Rubberwall, Charity and Cullen.

A design review is ongoing and the tendering process will be completed in the last quarter for works to be conducted in Regions 2, 3, 4 and 6 in areas such as Johanna Cecilia, Zorg, Success, New Hope, Sisters/Lonsdale and No.

78 Line Path.
78 Line Path.

53 2016 Mid-Year Report h. Energy 3.107 His Excellency President David Granger committed the Government in 2015 to realising a Green Economy for Guyana.

In advocating the green initiative, the Government introduced a five-point system: the sustainable exploitation of the country’s natural resources, the establishment of a solid waste programme, promotion of sustainable energy, promotion of the ecological integrity of the forests, and development and implementation of green technologies.
The GPL included several “green” initiatives in its Development and Expansion Plan for the period 2016-2020.

3.108 In the first six months of 2016, a sum of $101.3 million was expended on projects to improve electricity generation, transmission and distribution.

The Government has upgraded generators at Mahdia and Port Kaituma, and identified sites for wind data collection and installation of on-grid photovoltaic systems, in keeping with the goal of "a greener economy".
Further, the Guyana Energy Agency (GEA) commenced reviewing the application for a hydropower license to develop a hydropower station at Tumatumari.

The design for a grid-connected solar energy system for the Umana Yana was completed and should result in the heritage building becoming a zero net energy building.

The system is expected to be fully functional by the end of this year.
3.109 During the latter half of 2016, a contract will be awarded for the upgrading of 250km of the main distribution network covering 85 areas in Georgetown, East Coast Demerara, West Demerara and East Berbice.

i.

Tourism 3.110 In the first six months of 2016, Guyana welcomed a total of 108,183 visitors; this is approximately 14,694 or 15.7 percent more than in 2015 and 17,396 or 19.2 percent more than 2014 for the same period.
Visitors' arrival peaked during the month of May with arrivals totalling 24,987 persons.

This can be attributed to the heightened celebrations of Guyana's Golden Jubilee.

This celebration period, according to the 54 2016 Guyana Tourism Authority (GTA), was accompanied by an average hotel occupancy rate Mid-Year Report of 75 percent compared to 39 percent for the same period in 2015, with 95 percent in Georgetown and 55 percent in outlying areas.
3.111 A total of 91 rooms were added to the stock of rooms available as at June 2016, which resulted in the expansion of the capacity of the tourism sector: Palm Springs, 22 rooms; Tower Suites, 29 new rooms; and Beachview Hotel, 40 rooms.

In addition, efforts were made to re-establish the national Bed and Breakfast Programme within the local accommodation sector.

To this end, inspection and registration of bed and breakfast facilities have been completed.
During this period, Guyana also welcomed the arrival a new airline which began operations in May.

3.112 In an effort to establish more comprehensive data to analyse the contribution of the tourism sector to national development, a Tourism Satellite Accounting (TSA) workshop was hosted by specialists from the Caribbean Tourism Organisation (CTO) to educate tourism stakeholders on the importance of having TSA in Guyana.
Subsequently, research on the data requirements for the ten TSA tables was conducted by the Guyana Tourism Authority (GTA) and the Bureau of Statistics (BOS).

The findings for each table were compiled and are expected to be presented to the agencies involved during the third quarter.

j.

Public Administration and Public Financial Management 3.113 Government is keeping to its commitment to strengthen public procurement systems.
A consultant has been contracted to begin work during the second half of 2016 to improve and transform the existing processes and systems at the National Procurement and Tender Administration Board (NPTAB).

Works will include the development of operations manuals, training, the development and implementation of a manual system, upgrading of the NPTAB website and the development of a database and reporting system.
This will lay the groundwork for the implementation of an e- procurement system in the future.

55 2016 Mid-Year Report 3.114 Towards improving public financial management, the Government has begun the upgrading of the Integrated Financial Management System (IFMAS) to become more user-friendly with expanded functionality.

The existing modules are being expanded and two new modules are being implemented: an asset module and a purchasing module.
These improvements aim to promote reporting capability, accountability and transparency.

Training of relevant staff from the Budget Agencies on the upgraded system has commenced and will continue through to the end of the year.

3.115 In the area of budget transparency, consultations with key stakeholders on the National Budget remain a priority for this administration, and will continue to take place.
Training during the year has focused on strengthening monitoring and evaluation capabilities within the Budget Agencies, budget preparation, development of performance indicators and other forms of ongoing technical assistance.

An updated programme budgeting manual will be published in the second half to enhance the application of related principles and practices.
Tracking the progress of budget implementation via regular performance review sessions is ongoing, including with our development partners, to ensure the effective and efficient delivery of the public sector investment programme.
More information on the implementation of the budget and the state of the economy is being made available monthly on the Ministry of Finance website as well as in the Mid-Year Report 2016 to Parliament which has an expanded level of analysis and detail to facilitate greater transparency and accountability.

3.116 As part of ensuring in-year compliance with government accounting standards and procedures, the internal audit function continues to be strengthened.
To this end, work is underway to deploy independent audit units from the Ministry of Finance to selected Ministries.

Further, Government is also working with development partners to strengthen capacity for audit and control through the development of an internal audit manual, the training of staff, organisational restructuring, and the international certification of personnel in internal audit.
3.117 In addition, the Accountant General’s Department has been developing standard operating procedures for its various sections to regularise its activities and processes.

56 2016 Further, the Government is working towards the adoption of an international standard Mid-Year Report of accounting in the public sector.

Training and sensitisation sessions have commenced on the International Public Sector Accounting Standards.
A review is being conducted to assess the areas that need to be addressed in order to meet the criteria for certification.

3.118 The Bureau of Statistics is enhancing its capacity to conduct annual programmes of multi-topic surveys.

With support from a technical team from the Inter-American Development Bank (IDB), the Bureau will design, plan and execute a continuous Labour Force Survey that will commence in January 2017 and run continuously throughout the year, in four rounds.
Initially, the Labour Force data will be published on a twice-yearly basis with frequency increasing to a quarterly publication by 2018.

In addition, a Living Conditions Survey is planned to commence in July 2017, which will include a ‘Crime Module’, reflecting wide consultation with local stakeholders.

Further, in June 2016 the Bureau was able to publish Compendiums 1 and 2 of the Census Analysis.

The final two Compendiums are now scheduled for end August and end November, respectively.
Additionally, the Bureau, with support from CARTAC, will commence quarterly GDP statistics publications in 2017.

The data from these statistical products will be of invaluable assistance to a range of stakeholders.

57 2016 4.

Economic and Fiscal Risks and Proposed Policy Responses Mid-Year Report 4.1 The major risks to the economy are driven by both external and domestic factors, and may affect the real, fiscal, external, or monetary sector, or any combination of the four sectors.
Because of Guyana’s status as a small open economy, and the importance of trade to its economy, Guyana is particularly vulnerable to external risks.

The Government is working to improve its ability to identify these risks, and to implement policies and programmes that reduce or mitigate them.

4.2 One domestic risk to the real, external, and fiscal sector is the performance of the rice and sugar industries.
While Government involvement has kept these industries afloat, it has also shielded them from market conditions that would otherwise force the industries to reform or innovate.

The lack of alignment between production costs and prices typically results in the destabilization of revenues and the eventual need for government support packages.

This is exemplified in the case of GuySuCo, where constant demands for transfers continue to crowd out other priority public sector expenditure.
These inefficiencies compromise GuySuCo’s ability to compete globally, while at the same time continuing to face growing competition from alternative sweeteners and sugar substitutes.

The rice and sugar industries make up a consequential portion of GDP, so their performance has important implications for growth.

They also make up a large share of exports, and reduced export earnings from these industries could negatively affect reserves and the balance of payments.
In the short run, GuySuCo, in particular, also poses a large risk to the Government’s fiscal position.

If sugar production fails to improve in the second half of 2016, GuySuCo may face financial strain that will lead to requests to the Government for further transfers, on top of the $9 billion it has already received in the first half of the year.
Despite the risk posed by the rice and sugar industries, the agricultural sector still holds potential for development, and the Government is working to improve the robustness of the sector by improving the competitiveness of both crops and increasing diversity.

4.3 Another category of domestic risks are those affecting the implementation of the Public Sector Investment Programme (PSIP).

One such risk is the possibility 58 2016 of rising contractor costs.
As the PSIP becomes larger and more ambitious and complex, Mid-Year Report the Government’s ability to manage projects and contractors will become more crucial.

Inefficiency in project management can cause delays, cost overruns, and diminished quality.

Poor implementation of the PSIP is a risk not only to Government finances, but also to the real sector, as public sector investment projects are an important source of business for the construction industry and other related sectors.
Accelerating the pace of implementation of the PSIP during the second half of 2016 is a key priority.

To address these problems, the Government will work to train and build staff capacity to manage projects, including bidding processes, overseeing contractors and procurement planning.

At both Cabinet and Budget Agency levels, sectoral ownership is being emphasized and has resulted in more intense supervision at the policy and senior technical levels.
Further, Heads of Budget Agencies have been mandated to conduct fortnightly, multi-agency PSIP review meetings that focus on solutions.

Increased monitoring and reporting from Ministries, Regions, and semi-autonomous agencies on their rate of implementation is anticipated to improve accountability.
Going forward, the recommendations include the meeting of conditions precedent prior to signing of loan documents, and the hiring of project managers prior to the signing of loan agreements as part of the project planning team so that the project design and objectives are fully understood ahead of the project implementation period.

This will ensure that valuable time is not lost and commitment fees not incurred while lead project staff are being hired and becoming familiar with project components.
In the medium term, increased avenues for open government will be explored in order to engage citizens in the monitoring of public sector investment projects.

4.4 Because Guyana’s exports are large relative to the size of its economy, external demand for Guyana’s commodities are important to its economic and fiscal performance.

Slow global growth, especially among Guyana’s key trade partners, poses a risk to Guyana’s economy.
Guyana’s export markets are highly concentrated, with the United States and Canada together accounting for about half of all of Guyana’s exports.

This risk has been exacerbated by Brexit.

Although the United Kingdom is a limited export market for Guyana, the wider effects of Brexit on the world economy could have a negative impact on external demand for Guyana’s goods.

(For more 59 2016 information on the potential impact of Brexit on Guyana’s economy, see Box 1.)
To Mid-Year Report address this risk, the Government is working to develop new export markets (such as the Mexican market for rice paddy), and build a strong domestic economy.

4.5 Slowing credit growth is an important risk in the monetary and real sectors.

Access to credit fuels consumption (by providing consumer credit to purchase goods like vehicles and appliances) and investment (by enabling businesses and households to access financing to pay for property and productive assets).
The ability of businesses to borrow to make investments is especially important to the economy, as it provides the foundation for future growth.

The Bank of Guyana has attempted to encourage lending by pursuing an expansive monetary policy that allows commercial banks ample reserves.

However, despite high reserve levels, commercial bank lending has been limited, due to risk aversion and high non-performing loans.
The Government is taking a two-pronged approach to addressing the risk of slowing credit growth.

First, the Government is working to improve the business environment and provide training in technical and business management skills to potential investors.

Second, the Government, in partnership with the Bank of Guyana, is looking into strategies to improve the efficacy of monetary policy in Guyana, including exploring the development of a longer-term government bond market.
More effective monetary policy will improve the Bank of Guyana’s ability to stimulate the economy through expansionary monetary policies.

4.6 The negative impact of El Niño weather patterns on production in the rice and sugar industries this year has drawn attention to the risks posed by adverse weather events and natural disasters.
El Niño is expected to be followed by another weather phenomenon, La Niña, which would result in higher than average rainfall in Guyana, together with greater risk of flooding.

Global climate change could heighten this risk by increasing the frequency, severity, or unpredictability of these events.

To address this risk, the Government is investing in water and other infrastructure, and considering green initiatives.

A more diverse economy and agricultural sector will also mitigate these risks.
4.7 Uncertainty regarding access to concessional financing is another key fiscal risk for Guyana.

Currently, Guyana benefits from relatively low debt servicing costs 60 2016 because much of its debt is financed through concessional external borrowing.

However, Mid-Year Report most concessional financing is targeted to low-income and lower-middle income countries.

The World Bank announced, in July 2016, the reclassification of Guyana to an upper middle-income country.
While the news is indicative of Guyana’s success in maintaining strong and sustained growth in recent years, it will have a negative impact on Guyana’s ability to access concessional financing to support continued investment in growth and development.
To address this, the Government is actively pursuing affordable loans from non-traditional lenders such as the Export-Import Bank of China, and the Export-Import Bank of India, the Islamic Development Bank, and the Government of Mexico’s Infrastructure Fund for Meso-American and the Caribbean Countries, Yucatan Agreement.

The Government is also looking into innovative financing, such as public-private partnerships.
Finally, the Government is exploring developing the domestic debt market, to tap into local resources to finance development, and the diaspora, through diaspora bonds or other channels to mobilise diaspora funds.

4.8 Maintaining a sustainable debt level will be an important factor in reducing economic and fiscal risks.

High debt levels not only raise the risk of crisis, but can also constrain the Government from responding to external shocks with expansionary fiscal policy.
Pursuing responsible fiscal policy has been a cornerstone of this Government’s agenda, and it will continue to work to increase fiscal space, by increasing tax compliance and the tax base, and making sound expenditure decisions.

The Government will formalise the use of debt sustainability analysis and medium term debt strategy analysis in monitoring debt and formulating fiscal policy.
The Government is also pursuing expenditures that focus on investing in sustainable growth, so that in the future Guyana will have a more resilient economy.

4.9 Another risk to the economy is Guyana’s reliance on remittances, both to support local consumption and investment, and as a source of foreign exchange.
While remittances have historically been a stable source of inflows, even during the global financial crisis, a sudden, large drop in remittances inflows could cause a slowdown in the local economy, and put pressure on the exchange rate.

To address this, the 61 2016 government is working with money transfer services to reduce the cost of sending and Mid-Year Report receiving remittances.
Another important element in reducing this risk is ensuring that local households have access to a variety of savings and investment products, so that they are not reliant on relatives abroad for funds when times are tight.

A strong social safety net, as well as the presence of automatic stabilisers in fiscal policy, could also help shield households from a drop in remittances.
To protect against exchange rate risk associated with a drop in remittances, the Bank of Guyana is maintaining ample foreign exchange reserves, in excess of the minimum recommendation that reserves equal three months of exports.

4.10 Identifying and understanding risk is the first step to mitigating it.

In 2016, the Government has embarked on several initiatives within the Ministry of Finance to enhance capacity to conduct economic analysis and assess risks to continued growth and development.
A Macro-Fiscal Forecasting Committee has begun meeting on a monthly basis to discuss the economic outlook and generate macroeconomic forecasts (See Box 7).

The Ministry of Finance also began publishing a Monthly Economic Bulletin, which uses the economic data released each month to analyse key trends in the economy.

4.11 The absence of employment data as generated by a Labour Force Survey continues to beset the shaping of Government policy on job creation.
This administration has taken steps to ensure that a Labour Force Survey is conducted and preparatory work has commenced that will result in the survey being conducted in 2017.

62 2016 Box 7: Improving Macro-Fiscal Forecasting at the Ministry of Finance Mid-Year Report Good forecasts of macroeconomic conditions are an essential input into developing appropriate economic and fiscal policies.
While there is often a high degree of uncertainty around the point estimates in any economic forecast, a good forecast provides an accurate broad outlook for the economy and highlights the risks and uncertainties that officials should consider when making forward-looking policies.

Over the past year, the Ministry of Finance, with support from the Caribbean Regional Technical Assistance Centre (CARTAC), has been working to improve its macroeconomic and fiscal forecasting.
In November 2015, CARTAC conducted a workshop with staff from the Ministry of Finance, Bank of Guyana, Bureau of Statistics, and Guyana Revenue Authority to develop a model for forecasting key variables in the real and fiscal sectors of the economy, and train staff in the model’s use.

In June 2016, a second workshop was conducted to develop models for the external and monetary sectors of the economy.
To produce an accurate forecast, the models require high quality data input and subjective judgments from experts in each sector of the economy.

As such, the Ministry of Finance has instituted an interagency Macro-Fiscal Forecasting Committee, which includes representation from the Bureau of Statistics, Bank of Guyana, Guyana Revenue Authority, and multiple divisions within the Ministry of Finance.
The Committee is responsible for advising on the data, assumptions, and judgments that go into the forecast model.

The Committee is chaired by the Director of the Office of the Budget, and managed by the Economic Policy Analysis Unit within the Office of the Budget, which is also responsible for updating and maintaining the forecast model.

The Macro-Fiscal Forecasting Committee meets on a monthly basis.

It held its first meeting on May 20, 2016.


In addition to providing inputs to the forecast model, meetings provide a valuable opportunity for interagency discussion about key risks and challenges for economic growth and development.

In the future, the Committee will also be responsible for analysing the error margin on its forecasts and making improvements to the forecast model.

63 2016 5.
63 2016 5.

Conclusion Mid-Year Report 5.1 The Mid-Year Report 2016 serves to highlight some of the initiatives that this Government is pursuing to ensure improved service delivery across the regions of our country.

Much has been achieved as has been captured in the report.

After reviewing all sector performances and the global outlook, a conservative position for the revised economic outlook was adopted, projecting a slightly lower growth rate for 2016 than originally forecasted.
But bright prospects in key areas of construction, other services, fishing, gold and tourism could yet see the original growth rate being realised in this our Jubilee Year.

5.2 The performance during the first half year of 2016 highlighted the need for significant improvements going forward.

Sector performances in terms of growth demonstrated a need for structural fixes in key sectors, capacity gaps to be addressed, data gaps to be filled and the need to improve operational efficiencies.
The economy’s vulnerability to a range shocks including global economic volatility and weather phenomena - like El Niño - demonstrate a need for greater diversification and deliberate policies to secure greater resilience.

In particular, going forward, public sector performance must improve in its timeliness and results-based orientation in order to improve both programme and project implementation which will ensure improved service delivery across all sectors.
5.3 During the second half, it is expected that the actions and policy initiatives taken during the first half will redound to result in the revised outlook having an improved fiscal deficit notwithstanding the anticipated lower GDP growth.

5.4 Though there are several downside risks to the macro-fiscal economic outlook on both the domestic and external fronts, they are not insurmountable.
Concerted and proactive efforts towards realising the good life on the parts of government, private sector and individual citizens, collectively, will continue to stimulate growth, restore confidence and strengthen resilience.

Altogether these will augur well to usher in the good life.
64 APPENDICES APPENDIX A1 MID-YEAR REAL GDP GROWTH RATES BY SECTOR Item Agriculture, Fishing and Forestry Sugar Rice Other Crops Livestock Fishing Forestry Mining and Quarrying Bauxite Gold Other Manufacturing Sugar Rice Other Manufacturing Electricity and Water Construction Wholesale and Retail Trade Transportation and Storage Information and Communication Financial and Insurance Activities Public Administration Education Health and Social Services Real Estate Activities Other Service Activities TOTAL Non-Sugar Growth Rate (%) 2015 Revised 2016 Budget 2016 proj 2015 HY 2016 HY 2.4 6.9 8.3 2.0 5.8 -2.6 -10.6 9.0 -13.4 16.4 -0.3 5.3 6.9 7.6 3.5 5.2 -10.0 4.8 -0.6 13.6 5.5 7.5 2.5 3.8 3.7 2.5 3.2 3.0 0.3 4.8 -8.4 2.5 0.5 1.5 2.5 16.6 0.0 22.0 4.4 -0.7 4.8 -7.8 2.4 3.6 10.5 3.9 2.8 2.8 2.9 1.2 2.5 2.5 3.3 2.5 4.4 4.3 -2.0 -5.6 -9.1 2.5 -1.5 1.7 2.5 33.3 14.0 44.2 -1.0 -4.2 -5.6 -8.5 -1.2 2.5 5.8 5.8 1.9 2.1 2.9 1.2 2.5 2.0 1.3 8.5 4.0 4.4 2.9 1.6 15.3 5.0 15.0 -0.3 -24.2 -14.5 -19.4 -16.2 -2.2 7.1 1.6 15.3 2.7 5.7 -13.2 4.8 12.0 6.0 4.6 0.5 2.2 2.9 1.8 3.6 0.9 1.0 -10.0 -30.3 -26.2 2.0 0.8 2.1 -13.1 65.7 2.9 94.3 13.9 -14.1 -30.3 -26.2 -3.0 8.1 -7.5 -11.3 1.4 2.1 5.9 0.8 1.1 1.3 1.8 10.0 2.0 3.1 Figures: Percent Souce: Bureau of Statistics 65 Mid-Year Report 2016 GDP Growth Rates by Sector APPENDIX A2 MID-YEAR REAL SECTOR SHARE OF GDP Item Agriculture, Fishing and Forestry Sugar Rice Other Crops Livestock Fishing Forestry Mining and Quarrying Bauxite Gold Other Manufacturing Sugar Rice Other Manufacturing
 Electricity and Water Construction Wholesale and Retail Trade Transportation and Storage Information and Communication Financial and Insurance Activities Public Administration Education Health and Social Services Real Estate Activities Other Service Activities 2012 HY 18.2 2.1 2.9 5.4 2.9 3.3 1.6 11.3 2.3 7.8 1.2 6.4 0.6 1.8 4.0 1.9 7.2 14.0 10.0 4.6 4.0 8.1 4.6 2.1 1.2 4.1 2013 HY 18.2 1.4 3.5 5.3 2.8 2.9 2.3 13.2 2.0 9.5 1.7 6.5 0.4 2.2 3.9 1.9 7.4 14.7 8.7 4.6 4.2 7.7 4.5 2.0 1.2 4.0 2014 HY 19.3 2.2 4.0 5.3 2.8 2.1 3.1 11.3 1.8 7.6 1.8 6.9 0.6 2.5 3.8 1.8 9.1 14.9 7.4 4.5 4.4 7.4 4.4 2.0 1.1 4.0 2015 HY 19.7 2.2 4.5 5.5 3.1 2.1 2.3 9.5 1.5 6.3 1.7 7.3 0.6 2.8 3.9 1.8 7.8 15.4 8.3 4.7 4.6 7.4 4.4 2.0 1.1 4.1 2016 HY 17.4 1.5 3.3 5.5 3.1 2.1 2.0 15.5 1.5 12.1 1.9 6.2 0.4 2.0 3.7 1.9 7.1 13.4 8.2 4.7 4.7 7.3 4.4 2.0 1.1 4.4 TOTAL 100.0 100.0 100.0 100.0 100.0 Figures: Percent Source: Bureau of Statistics 66 Mid-Year Report 2016 Sector Share of Real GDP APPENDIX B1 MID-YEAR BALANCE OF PAYMENTS ANALYTICAL SUMMARY ITEM 2015 ACTUAL 2016 BUDGET 2015 HY 2016 HY 2016 REVISED A Current Account (181.5) (116.9) 1.0 2.0 3.0 Merchandise (Net) 1.1 Exports (f.o.b.)
1.1.1 Bauxite 1.1.2 Sugar 1.1.3 Rice 1.1.4 Gold 1.1.5 Timber 1.1.6 Other 1.1.7 Re - exports 1.2 Imports (c.i.f.)
1.2.1 Fuel & Lubricants 1.2.2 Other Services (Net) 2.1 Factor 2.2 Non Factor (Net) Transfers 3.1 Official 3.2 Private B Capital Account 1.0 2.0 Capital Transfers Medium and Long Term Capital (Net) 2.1 Non - Financial Public Sector Capital (Net) 2.1.1 Disbursements 2.1.2 Amortization 2.1.3 Other 2.2 Private Sector (Net) 3.0 Short Term Capital C D E 1.0 2.0 3.0 Errors and Ommissions OVERALL BALANCE Financing Bank of Guyana net foreign assets Change in Non-Financial Public Sector Arrears Exceptional Financing 3.1 Debt Relief 3.2 Balance of Payments Support 3.3 Debt Forgiveness 3.4 Debt Stock Restructuring (340.3) 1,151.3 104.3 78.4 220.8 501.1 43.7 186.1 16.9 (1,491.6) (367.4) (1,124.2) (257.6) 24.7 (282.3) 416.5 416.5 71.4 18.5 30.3 (94.8) 53.6 (123.1) (25.2) 125.1 22.7 2.3 (107.7) 107.7 55.7 - 52.0 3.1 48.8 (316.7) 1,198.3 114.5 91.7 174.2 568.9 48.5 177.1 23.4 (1,515.0) (380.0) (1,135.0) (237.3) 25.7 (262.9) 437.1 437.1 163.1 11.4 216.7 (38.9) 60.6 (79.5) (20.0) 255.6 (65.0) 0.0 46.3 (46.3) (116.7) - 70.5 17.4 53.1 (135.7) (250.6) 527.2 53.3 30.4 125.7 188.3 23.5 98.2 7.9 (777.8) (200.7) (577.1) (83.2) (2.7) (80.5) 198.2 198.2 (9.2) 1.0 34.3 (50.8) 34.9 (61.3) (24.4) 85.1 (44.5) 86.7 (58.1) 58.1 33.1 - 25.0 1.6 23.4 40.9 (19.1) 680.4 46.3 20.8 88.3 390.7 19.4 100.9 14.0 (699.5) (151.6) (548.0) (113.5) (16.6) (96.9) 173.6 173.6 (31.2) 5.1 1.4 (21.5) 15.9 (37.5) - 22.9 (37.7) 2.36 12.1 (12.1) (38.7) - 26.6 1.4 25.2 72.92 (121.7) 1,301.3 114.5 61.8 133.0 743.0 48.5 177.1 23.4 (1,423.0) (310.0) (1,113.0) (237.3)
 25.7 (262.9) 431.9 431.9 1.68 11.4 55.2 (30.3) 33.0 (63.3) - 85.6 (65.0) 0.0 74.60 (74.6) (145.1) - 70.5 17.4 53.1 Figures: US$m Source: Bank of Guyana 67 Mid-Year Report 2016 Balance of Payments Analytical Summary APPENDIX C1 MID-YEAR MONETARY SURVEY 2015 December 2015 HY 2016 HY 1.0 Total Money & Quasi Money 1.1 Money 1.1.1 Currency 1.1.2 Demand Deposits 1.2 Quasi Money 1.2.1 Time Deposits 1.2.2 Savings Deposits 2.0 Domestic Credit (Net) 2.1 Public Sector (Net) 2.1.1 Central Govt.
(Net) 2.1.2 Public Enterprises (Net) 2.1.3 Other Public Sector (Net) 2.2 Private Sector 2.2.1 Agriculture 2.2.2 Other Manu.

& Process.

2.2.3 Rice Milling 2.2.4 Construction and Engineering 2.2.5 Distribution 2.2.6 Personal 2.2.7 Mining & Quarrying 2.2.8 Other Services 2.2.9 Real Est.

Mortg.

loans 2.2.10 Other 2.3 Financial Insts.
3.0 Foreign Assets (Net) 3.1 Assets 3.2 Liabilities 4.0 Other Items (Net) 334,471.1 130,295.0 75,753.8 54,541.2 204,176.2 23,879.5 180,296.6 184,598.8 (6,366.4) 56,331.2 (45,266.1) (17,431.5) 214,487.2 11,689.5 12,934.3 3,301.2 13,988.8 33,996.3 30,066.9 4,893.8 25,738.5 71,648.8 6,229.1 (23,521.9) 178,605.9 197,342.4 (18,736.5) (28,733.6) 328,388.9 123,037.8 67,460.2 55,577.6 205,351.0 22,970.3 182,380.8 158,037.6 (25,161.9) 39,405.5 (47,554.0) (17,013.4) 205,166.4 12,719.8 13,568.7 2,814.5 13,662.5 29,587.5 25,676.9 5,407.3 25,707.3 69,671.0 6,350.9 334,178.8 128,479.4 73,850.8 54,628.6 205,699.4 23,568.6 182,130.8 174,580.9 (13,816.6) 60,473.7 (55,033.7) (19,256.5) 213,135.2 11,462.0 13,432.2 2,970.8 13,310.1 31,583.6 30,643.5 4,458.5 26,182.0 73,098.3 5,994.2 (21,966.9) (24,737.7) 194,592.9 208,810.7 (14,217.8) 194,374.4 209,702.7 (15,328.3) (24,241.6) (34,776.6) Figures: G$m Source: Bank of Guyana 68 Mid-Year Report 2016 Monetary Survey APPENDIX D1 MID-YEAR CONSUMER PRICE INDEX ALL ITEMS FOOD CLOTHING FOOTWEAR AND REPAIRS HOUSING FURNITURE TRANSPORT & COMMUNICATION MEDICAL & PERSONAL CARE EDUCATION, RECREATION, CULTURE MISC.
GOODS & SERVICES 2015 Dec. 111.9 125.4 98.5 96.3 98.8 91.8 117.2 122.2 95.1 120.9 2015 June 111.9 2016 June 113.1 124.4 129.5 101.8 97.2 99.2 92.7 98.2 96.1 98.7 91.8 118.3 116.6 121.0 122.3 94.1 95.2 120.6 121.0 Source: Bureau of Statistics 69 Mid-Year Report 2016 Consumer Price Index APPENDIX E1 MID-YEAR CENTRAL GOVERNMENT FINANCIAL OPERATIONS 2015 ACTUAL 2016 BUDGET 2015 HY 2016 HY 2016 REVISED Total Revenue Revenue Tax Income taxes Consumption taxes Trade taxes Other Non-tax Private sector Public enterprise & BOG GRIF Inflows 162,710.2 173,329.7 161,710.2 142,896.3 54,500.2 68,806.8 14,026.6 5,562.7 18,813.9 6,422.1 12,391.8 173,324.7 150,406.7 57,424.0 72,539.1 14,919.1 5,524.6 22,917.9 7,672.9 15,245.0 - - Total expenditure 178,302.6 223,278.6 Current expenditure Non-interest expenditure Personal emoluments Other goods and services Transfer Payments Interest External Domestic Primary balance Current balance Capital Revenue Capital Expenditure 147,637.7 141,152.3 44,661.7 43,175.9 53,314.5 6,485.5 4,769.0 1,716.5 20,558.0 14,072.5 1,000.0 30,664.9 171,094.8 164,308.1 49,909.6 47,709.0 66,689.5 6,786.7 4,882.6 1,904.1 9,016.6 2,230.0 5.0 52,183.8 Overall Balance before Grants (15,592.4) (49,948.9) Grants HIPC relief Original Enhanced CMCF MDRI Other Projects Non-projects 6,273.1 2,428.6 - 943.9 1,484.7 - 3,844.5 3,844.5 - 16,782.5 2,468.9 - 984.2 1,484.7 - 14,313.7 5,675.0 8,638.7 Overall Balance after Grants (9,319.3) (33,166.4) Financing Net External Borrowing Disbursements of Loans Debt Repayments
 Rescheduling Guysuco - Escrow A/C Overseas Deposit Net Domestic Borrowing 9,319.3 (5,264.8) 14,710.8 15,345.9 650.3 - (5,280.1) 14,584.0 33,166.4 10,918.1 15,932.0 5,551.1 537.2 - 22,248.2 78,338.8 78,338.8 70,857.1 27,428.1 33,328.3 6,129.3 3,971.4 7,481.7 3,969.0 3,512.7 - 65,062.9 58,092.3 55,154.7 20,892.4 15,309.2 18,953.1 2,937.6 2,134.5 803.2 23,184.1 20,246.5 - 6,970.6 13,275.9 683.8 471.9 - 471.9 - - 211.9 211.9 - 13,959.7 (13,959.7) (1,635.3) 10,989.6 7,839.2 336.9 - (5,122.5) (12,324.5) 85,920.5
 85,920.5 75,149.2 31,836.7 32,213.4 7,261.0 3,838.1 10,771.3 6,395.2 4,376.1 - 89,662.0 76,460.4 73,287.4 21,782.6 15,852.0 35,652.7 3,173.0 2,335.9 837.1 12,633.1 9,460.1 - 13,201.6 179,907.2 179,902.2 150,512.4 57,526.3 72,381.4 15,080.2 5,524.6 29,389.7 11,447.5 17,942.2 - 224,585.9 175,507.6 168,720.8 49,909.6 52,121.7 66,689.5 6,786.8 4,882.6 1,904.1 11,181.5 4,394.8 5.0 49,078.3 (3,741.5) (44,678.7) 4,559.4 1,226.2 - 1,226.2 - - 3,333.1 1,059.3 2,273.8 817.9 (817.9) 499.3 2,744.4 2,524.5 279.3 - (1,317.2) 15,986.3 2,468.9 - 984.2 1,484.7 - 13,517.6 4,878.9 8,638.7 (28,692.2) 28,692.2 9,695.7 14,714.3 5,551.1 532.5 - - 15,734.9 - Net Divestment Proceeds - - - - Figures: G$m Source: Ministry of Finance 70 Mid -Year Report 2016 Central Government Financial Operations APPENDIX E2 MID-YEAR FINANCIAL OPERATIONS OF THE NON - FINANCIAL PUBLIC SECTOR ITEM 2015 ACTUAL 2016 BUDGET 2015 HY 2016 HY 2016 REVISED Non-Financial Public Sector Revenues 177,222.3 185,316.4 Central Government Public Enterprises 162,710.2 14,512.0 173,329.7 11,986.7 87,219.0 78,338.8 8,880.2 94,491.7 85,920.5 8,571.2 193,203.5 179,902.2 13,301.2 Total Expenditure 184,736.2 240,283.4 69,982.8 90,268.4 238,837.5 Current Expenditure Non-Interest Expenditure Personal Emoluments Other Goods and Services Transfer Payments Transfers to the Private Sector Transfers to the public sector Interest External Domestic Current Balance Capital Revenue Capital Expenditure Central Government Public Enterprises
 - 5.0 - - 37,098.2 30,664.9 6,433.4 69,188.6 52,183.8 17,004.7 11,890.5
 6,970.6 4,919.9 13,808.0 13,201.6 606.4 5.0 63,330.0 49,078.3 14,251.7 Overall Balance before Grants (7,513.7) (54,962.0) 17,236.2 4,223.3 (45,629.2) Grants HIPC Relief Other 6,273.1 2,428.6 3,844.5 16,782.5 2,468.9 14,313.7 683.8 471.9 211.9 4,559.4 1,226.2 3,333.1 15,986.3 2,468.9 13,517.6 Overall Balance after Grants (1,240.6) (38,179.6) 17,920.0 8,782.6 (29,642.8) Financing Net External Borrowing Net Domestic Borrowing Net Divestment Proceeds 1,240.6 (5,637.5) 6,878.2 - 38,179.6 7,294.1 30,885.4 - (17,920.0) (2,937.3) (14,982.7) - (8,782.6) (255.9) (8,526.7) - 29,642.8 11,269.1 18,373.8 - Figures: G$m Source: Ministry of Finance 71 Mid-Year Report 2016 Financial Operations of the Non-Financial Public Sector APPENDIX E3 MID-YEAR PUBLIC ENTERPRISES CASHFLOW ITEM 2015 ACTUAL 2016 BUDGET 2015 HY 2016 HY Receipts Enterprises NIS Contributions Investment Income 127,689.8 109,966.1 17,723.7 16,534.4 1,189.3 131,698.3 113,951.0 17,747.3 16,618.1 1,129.2 61,442.2 53,977.0 7,465.2 7,169.7 295.5 59,351.0 50,014.4 9,336.6 9,003.9 332.7 2016 Revised 121,470.4 103,003.8 18,466.6 17,374.6 1,092.0 Total Expenditure 119,611.2 136,711.2 57,481.3 50,381.3 124,851.1 Total non-interest expenditure Non-financial public enterprises Wages and Salaries Goods and Services Local taxes The NIS Taxes to Central Government Dividends and Transfers 112,604.6 93,176.8 26,941.6 66,194.3 40.9 16,754.9 1,670.4 1,002.5 118,080.5 95,589.7 25,825.0 69,662.3 102.4 17,636.4 2,639.4 2,215.0 52,291.2
 43,582.8 11,849.9 31,709.2 23.7 7,823.9 884.5 - 49,533.4 37,886.3 11,364.2 26,495.2 26.9 9,399.9 1,247.2 1,000.0 109,338.6 86,666.8 25,783.0 60,812.3 71.5 18,126.6 2,330.2 2,215.0 Primary surplus or deficit (-) 15,085.2 13,617.8 9,151.0 9,817.6 12,131.8 Interest External Domestic 573.2 404.0 169.2 1,626.0 - 1,626.0 270.8 155.0 115.8 241.5 120.5 121.0 1,625.0 366.0 1,259.0 Current surplus or deficit (-) 14,512.0 11,991.8 8,880.2 9,576.1 10,506.8 Capital Expenditure Enterprises NIS less Government transfers
 6,433.4 6,399.8 33.6 - 17,004.7 16,854.7 150.0 4,919.3 4,917.0 2.3 606.4 598.2 8.2 13,887.5 13,770.3 117.2 Overall surplus or deficit before special transfers(-) 8,078.6 (5,012.9) 3,960.9 8,969.7 (3,380.7) Special transfers Capital transfer from CG for interest capitalisation Transfer residual from (+) / to (-) CG - - - - - - - - - - - - - - - Overall surplus or deficit after special transfers 8,078.6 (5,012.9) 3,960.9 8,969.7 (3,380.7) Financing External Domestic Divestment proceeds (8,078.6) (372.7) (7,705.9) 5,012.9 (3,624.0) 8,636.9 (3,960.9) (1,320.0) (2,640.9) (8,969.7) (755.1) (8,214.6) 3,380.7 1,568.7 1,812.0 Figures: G$m Source: Ministry of Finance 72 Mid-Year Report 2016 Public Enterprise Cash Flow APPENDIX E4 MID-YEAR CENTRAL GOVERNMENT ABSTRACT OF NON-INTEREST CURRENT EXPENDITURE BY CHART OF ACCOUNT Acct Cod Chart of Account 2015 Actual 2016 Budget HY 2015 HY 2016 2016 Revised Total Statutory Expenditure 3,788,593,000 3,528,764,000 1,773,909,262 1,947,716,132 3,528,764,000 601 Total Statutory Employment Expenditure 3,710,789,000 3,450,960,000 1,773,909,262 1,911,814,132 3,450,960,000 6011 Statutory Wages and Salaries 6012 Statutory Benefits and Allowances 6013 Statutory Pensions and Gratuities 263,193,000 101,105,000 43,746,000 10,464,000 187,464,698 54,887,290 21,842,136 3,972,819 43,746,000 10,464,000 3,346,491,000 3,396,750,000 1,531,557,274 1,885,999,177 3,396,750,000 602 Statutory Payment to Dependants Pension Funds 6021 Statutory Payments to Dependants
 Pension Funds 77,804,000 77,804,000 77,804,000 77,804,000 - 35,902,000 35,902,000 77,804,000 77,804,000 137,363,576,000 160,779,326,000 53,380,783,653 71,339,676,484 160,779,326,000 Total Appropriation Expenditure 601 Total Employment Costs 611 Total Wages and Salaries 6111 Administrative 6112 Senior Technical 6113 Other Technical and Craft Skilled 6114 Clerical and Office Support 44,843,158,000 50,450,558,000 20,914,648,445 22,074,917,775 35,092,864,000 36,980,715,000 17,546,472,066 18,637,769,650
 5,354,704,000 5,401,054,000 2,604,899,662 2,723,389,093 6,441,387,000 6,771,908,000 3,160,949,170 3,460,970,412 4,587,566,000 4,773,448,000 2,325,330,218 2,407,946,655 3,996,247,000 4,272,987,000 2,011,175,485 2,239,723,144 50,450,558,000 36,980,715,000 5,401,054,000 6,771,908,000 4,773,448,000 4,272,987,000 3,947,304,000 6115 Semi-Skilled Operatives and Unskilled 3,625,510,000 3,947,304,000 1,807,664,379 1,876,407,630 6116 Contracted Employees 6117 Temporary Employees 613 Overhead Expenditure 6131 Other Direct Labour Costs 6132 Incentives 6133 Benefits and Allowances 6134 National Insurance 6135 Pensions 614 Other Employment Costs 6141 Other Employment Costs 620 Total Other Charges - - 583,592,000 6,614,800,000 747,341,000 10,000,000 3,176,957,000 2,085,302,000 595,200,000 6,855,043,000 6,855,043,000 92,520,418,000 110,328,768,000 32,466,135,208 49,264,758,709 110,328,768,000 621 Expenses Specific to the Agency 6211 Expenses Specific to the Agency 300,233,000 300,233,000
 318,880,000 318,880,000 120,360,197 155,251,818 120,360,197 155,251,818 622 Materials, Equipment and Supplies 8,916,244,000 7,612,057,000 3,441,457,757 2,915,447,281 6221 Drugs and Medical Supplies 6222 Field Materials and Supplies 6223 Office Materials and Supplies 6224 Print and Non-Print Materials 623 Fuel and Lubricants 6231 Fuel and Lubricants 5,149,694,000 3,900,468,000 1,936,178,775 1,748,825,539 1,262,681,000 1,355,609,000 466,911,280 505,079,511 840,950,000 706,608,000 362,323,268 253,867,969
 1,662,919,000 1,649,372,000 676,044,434 407,674,262 2,350,273,000 2,576,521,000 1,076,943,204 1,013,591,350 2,350,273,000 2,576,521,000 1,076,943,204 1,013,591,350 624 Rental and Maintenance of Buildings 3,418,791,000 4,111,373,000 924,946,484 1,165,017,124 6241 Rental of Buildings 6242 Maintenance of Buildings 6243 Janitorial and Cleaning Supplies 625 Maintenance of Infrastructure 6251 Maintenance of Roads 6252 Maintenance of Bridges 6253 Maintenance of Drainage and Irrigation Works 6254 Maintenance of Sea and River Defenses Maintenance of Other Infrastructure 1,048,798,000 1,456,994,000 149,595,961 373,062,341 1,456,994,000 Figures: G$ Source: Ministry of Finance 73 Mid-Year Report 2016 Central Government Abstract of Non-Interest Current Expenditure by Chart of Account APPENDIX E4 MID-YEAR CENTRAL GOVERNMENT ABSTRACT OF NON-INTEREST
 CURRENT EXPENDITURE BY CHART OF ACCOUNT 626 Transport, Travel & postage 6261 Local Travel and Subsistence 6262 Overseas Conferences and Official Visits 6263 Postage, Telex and Cablegrams 6264 Vehicle Spares and Service 4,562,260,000 4,362,745,000 1,804,663,741 1,753,625,958 1,715,999,000 1,812,081,000 661,049,106 737,771,134 285,390,000 390,000,000 45,207,000 55,852,000 75,747,837 20,289,652 82,473,712 24,239,927 1,098,312,000 1,090,073,000 422,206,308 409,349,988 6265 Other Transport, Travel and Postage
 1,417,351,000 1,014,739,000 625,370,838 499,791,197 627 Utility Charges 6271 Telephone Charges 6272 Electricity Charges 6273 Water Charges 4,751,223,000 7,179,992,000 1,019,407,906 1,279,990,275 570,870,000 609,464,000 230,470,327 243,160,968 3,382,149,000 5,759,440,000 666,168,456 846,789,541 798,205,000 811,088,000 122,769,123 190,039,766 628 Other Goods and Services Purchases 7,967,383,000 8,978,415,000 2,950,932,157 3,535,513,247 6281 Security Services 6282 Equipment Maintenance 3,339,526,000 3,774,848,000 1,411,437,930 1,384,864,341 1,099,951,000 1,107,841,000 436,974,135 429,760,736 6283 Cleaning and Extermination Services 435,302,000 382,029,000 159,807,693 135,142,895 6284 Other 629 Other Operational Expenses 6291 National and Other Events 6292 Dietary 6293 Refreshment and Meals 6294 Other 3,092,604,000 3,713,697,000 942,712,399 1,585,745,275 7,514,590,000 8,162,081,000 3,124,824,208 2,768,811,196 612,269,000 1,004,964,000 197,263,961 484,966,472 4,040,945,000 4,782,749,000 1,404,990,223 1,356,559,754 342,651,000 210,706,000 183,069,723 81,772,830 2,518,726,000 2,163,662,000 1,339,500,301 845,512,140 630 Education Subvention and Training 4,789,076,000 6,059,393,000 1,579,915,942 1,975,463,344 6301 Education Subventions and Grants 6302 Training (Including Scholarships) Rates and Taxes and Subventions to Local Authorities 631 6311 Rates and Taxes 6312 Subventions to Local Authorities 2,588,787,000 3,169,264,000 838,050,395 1,356,367,218 2,200,289,000 2,890,129,000
 741,865,547 619,096,126 189,352,000 172,258,000 17,094,000 198,486,000 176,740,000 21,746,000 85,163,252 81,084,088 4,079,164 145,700,562 141,173,295 4,527,267 632 Subsidies and Contributions to Local & Int Org 33,701,246,000 41,759,201,000 10,605,595,672 24,386,944,626 32,647,102,000 32,699,372,000 10,359,330,058 19,484,159,652 6321 Subsidies and Contributions to Local Organisations Subsidies and Contributions to International Organisations 6322 6323 Constitutional Agencies 633 Refunds of Revenue 6331
 Refunds of Revenue 634 Pensions 6341 Non-Pensionable Employees 6342 Pension Increases 1,054,144,000 1,237,566,000 246,265,614 1,049,742,359 1,237,566,000 3,853,042,615 7,822,263,000 - 7,822,263,000 11,041,000 11,041,000 35,500,000 35,500,000 8,867,608 8,867,608 25,722,535 25,722,535 10,653,766,000 14,567,151,000 4,877,400,561 6,878,893,801 164,070,000 192,675,000 71,728,220 79,413,445 2,415,821,000 2,700,000,000 1,149,562,241 1,314,738,765 6343 Old Age Pensions and Social Assistance 8,073,876,000 11,674,476,000 3,656,110,100 5,484,741,591 635 Other Public Debt 6351 Other Public Debt Grand Total - - - - - - - - - - Figures: G$ Source: Ministry of Finance 74 Mid-Year Report 2016 Central Government Abstract of Non-Interest Current Expenditure by Chart of Account NON-INTEREST CURRENT EXPENDITURE BY AGENCY APPENDIX E5 Agency 2015 Actuals 2016 Budget 2015 HY 2016 HY Office of the President 1,456,552 - 949,971 - Ministry of the Presidency 1,441,205 4,413,702 -
 1,748,971 Office of the Prime Minister 267,793 501,157 77,821 224,135 Ministry of Finance 19,875,444 23,097,339 6,131,486 6,155,022 Ministry of Foreign Affairs 3,441,700 3,672,374 1,573,235 1,985,475 Parliament Office 976,089 1,373,759 618,512 603,186 Audit Office of Guyana 643,527 714,335 - 335,384 Public and Police Service Commission 75,436 87,957 33,269 37,700 Teaching Service Commission 83,956 109,205 38,025 42,034 Guyana Elections Commission 3,617,889 3,574,488 2,247,564 1,963,640 Ministry of Local
 Government & Regional Development Public Service Ministry Ministry of Amerindian Affairs 227,656 670,899 351,279 - - - 150,880 401,846 181,998 - - - Ministry of Indigenous People's Affairs 275,962 776,533 - 217,949 Ministry of Agriculture 16,630,008 14,052,581 5,717,767 11,591,411 Ministry of Tourism, Industry & Commerce 442,720 - 294,063 - Ministry of Tourism 264,371 35,617 Ministry of Business 204,909 668,564 - - 33,441 319,864 Ministry of Natural Resources & Environment 477,587 - 327,513 - Ministry of Natural Resources 700,428 276,867 Ministry of Public Works 1,759,489 - 1,127,415 - Ministry of Public Infrastructure 2,664,363 7,305,662 Ministry of Public Telecommunication 785,610 - - 2,246,373 369,123 Ministry of Education 6,028,339 3,983,486 - Ministry of Culture, Youth & Sport 974,051 - 626,695 Ministry of Education 6,030,247 16,057,292 - 5,965,923 Ministry of Housing & Water 263,251 - 45,368 - Ministry of Communities 369,580 1,431,346 - 241,398 Georgetown Public Hospital Corporation 3,951,460 - 2,640,548 - Figures: G$'000 Source: Ministry of Finance 75 Mid-Year Report 2016 Non-Interest Current Expenditure by Agency NON-INTEREST CURRENT EXPENDITURE BY AGENCY APPENDIX E5 Agency 2015 Actuals 2016 Budget 2015 HY 2016 HY Ministry of Health 6,516,668 - 3,760,217 Ministry of Public Health 4,680,282 16,995,654 - 7,863,056 Ministry of Labour, Human Services & Social Security 5,915,591 - 4,304,108 - Ministry of Social Protection 3,936,090 13,715,373 - 6,397,578
 Ministry of Home Affairs 7,528,015 - 5,403,455 - Ministry of Public Security 3,566,590 12,419,166 - 5,612,233 Ministry of Legal Affairs 914,066 1,508,204 114,054 815,605 Guyana Defence Force 9,017,177 9,581,867 4,165,184 4,873,092 Supreme Court 1,312,779 1,532,287 525,515 725,134 Public Prosecutions 129,004 160,090 52,649 57,586 Office of the Ombudsman 28,723 44,756 12,961 14,349 Public Service Appellate Tribunal 1,202 12,499 586 953 Ethnic Relations Commission 27,596 81,446 Judicial Service Commission 2,340
 10,020 Rights Commissions of Guyana 31,484 121,420 Public Procurement Commission 1 - - - - 23,487 3,731 45,859 - Region 1: Barima / Waini 1,749,461 2,020,941 618,039 729,752 Region 2: Pomeroon / Supenaam 2,569,726 2,958,836 1,071,227 1,180,786 Region 3: Essequibo Islands / West Demerara 3,408,092 3,934,512 1,387,475 1,816,164 Region 4: Demerara / Mahaica 3,883,733 5,038,552 1,533,979 2,183,789 Region 5: Mahaica / Berbice 1,866,036 2,272,956 831,648 930,418 Region 6: East Berbice / Corentyne 4,607,110 5,299,032 1,879,010 2,380,368 Region 7: Cuyuni / Mazaruni 1,634,202 1,896,939 657,953 862,260 Region 8: Pataro / Siparuni 867,037 1,181,167 300,912 596,634 Region 9: Upper Takatu / Upper Essequibo Region 10: Upper Demerara / Upper Berbice 1,211,406 1,549,436 480,776 597,834 2,281,999 2,614,987 887,483 1,218,831 GRAND TOTAL 141,152,169 164,308,090 55,154,693 73,287,393 Figures: G$'000 Source: Ministry of Finance 76 Mid-Year Report 2016 Non-Interest Current Expenditure by Agency NON-INTEREST CURRENT EXPENDITURE BY SECTOR APPENDIX E6 Sector 2015 Actuals 2016 Budget 2015 HY 2016 HY GENERAL ADMINISTRATION SECTOR 33,405,387 38,320,849 12,404,606 13,313,495 Office of the President 1,456,552 - 949,971 - Ministry of the Presidency 1,441,205 4,413,702 - 1,748,971 Office of the Prime Minister 267,793 501,157 77,821 224,135 Ministry of Finance 19,875,444 23,097,339 6,131,486 6,155,022 Ministry of Foreign Affairs 3,441,700 3,672,374 1,573,235 1,985,475 Parliament Office 976,089
 1,373,759 618,512 603,186 Office of the Auditor General 643,527 714,335 - 335,384 Public and Police Service Commission 75,436 87,957 33,269 37,700 Teaching Service Commission 83,956 109,205 38,025 42,034 Guyana Elections Commission 3,617,889 3,574,488 2,247,564 1,963,640 Ministry of Local Government & Regional Development Public Service Ministry 227,656 670,899 Ministry of Amerindian Affairs 351,279 - - - 150,880 401,846 181,998 - - - Ministry of Indigenous People's Affairs 275,962 776,533 - 217,949 ECONOMIC
 SERVICES SECTOR 18,019,595 15,457,190 6,339,343 12,221,582 Ministry of Agriculture 16,630,008 14,052,581 5,717,767 11,591,411 Ministry of Tourism, Industry & Commerce Ministry of Tourism 442,720 264,371 - 35,617 Ministry of Business 204,909 668,564 294,063 - - - 33,441 319,864 Ministry of Natural Resources & Environment 477,587 - 327,513 - Ministry of Natural Resources 700,428 276,867 INFRASTRUCTURE SECTOR 4,423,852 8,091,272 1,127,415 2,615,496 Ministry of Public Works 1,759,489 - 1,127,415 - Ministry of Public Infrastructure 2,664,363 7,305,662 Ministry of Public Telecommunication 785,610 - - 2,246,373 369,123 SOCIAL SERVICES SECTOR 38,665,559 48,199,665 15,360,422 20,467,955 Ministry of Education 6,028,339 Ministry of Culture, Youth & Sport 974,051 - - 3,983,486 626,695 - - Ministry of Education 6,030,247 16,057,292 - 5,965,923 Ministry of Housing & Water 263,251 - 45,368 - Figures: G$'000 Source: Ministry of Finance 77 Mid-Year Report 2016 Non-Interest Current Expenditure by Sector NON-INTEREST CURRENT EXPENDITURE BY SECTOR APPENDIX E6 Sector 2015 Actuals 2016 Budget 2015 HY 2016 HY Ministry of Communities 369,580 1,431,346 - 241,398 Georgetown Public Hospital Corporation Ministry of Health 3,951,460 6,516,668 - - 2,640,548 3,760,217 - - Ministry of Public Health 4,680,282 16,995,654 - 7,863,056 Ministry of Labour, Human Services & Social Security 5,915,591 - 4,304,108 - Ministry of Social Protection 3,936,090 13,715,373 - 6,397,578 PUBLIC SAFETY SECTOR 22,558,976
 25,471,756 10,274,405 12,172,028 Ministry of Home Affairs 7,528,015 - 5,403,455 - Ministry of Public Security 3,566,590 12,419,166 - 5,612,233 Ministry of Legal Affairs 914,066 1,508,204 114,054 815,605 Guyana Defence Force 9,017,177 9,581,867 4,165,184 4,873,092 Supreme Court 1,312,779 1,532,287 525,515 725,134 Public Prosecutions 129,004 160,090 52,649 57,586 Office of the Ombudsman 28,723 44,756 12,961 14,349 Public Service Appellate Tribunal 1,202 12,499 586 953 Ethnic Relations Commission 27,596
 81,446 Judicial Service Commission 2,340 10,020 Rights Commissions of Guyana 31,484 121,420 Public Procurement Commission 1 - - - 23,487 3,731 45,859 - REGIONAL DEVELOPMENT SECTOR 24,078,802 28,767,358 9,648,502 12,496,835 Region 1: Barima / Waini 1,749,461 2,020,941 618,039 729,752 Region 2: Pomeroon / Supenaam 2,569,726 2,958,836 1,071,227 1,180,786 Region 3: Essequibo Islands / West Demerara 3,408,092 3,934,512 1,387,475 1,816,164 Region 4: Demerara / Mahaica 3,883,733 5,038,552 1,533,979 2,183,789 Region 5: Mahaica / Berbice 1,866,036 2,272,956 831,648 930,418 Region 6: East Berbice / Corentyne 4,607,110 5,299,032 1,879,010 2,380,368 Region 7: Cuyuni / Mazaruni 1,634,202 1,896,939 657,953 862,260 Region 8: Pataro / Siparuni 867,037 1,181,167 300,912 596,634 Region 9: Upper Takatu / Upper Essequibo Region 10: Upper Demerara / Upper Berbice 1,211,406 1,549,436 480,776 597,834 - - - - 2,281,999 2,614,987 887,483 1,218,831 GRAND TOTAL 141,152,169 164,308,090 55,154,693 73,287,393 Figures: G$'000 Source: Ministry of Finance 78 Mid-Year Report 2016 Non-Interest Current Expenditure by Sector APPENDIX E7 MID YEAR GOVERNMENT SUMMARY OF CAPITAL EXPENDITURE BY SECTOR AND TYPE OF FINANCING SECTOR AND SOURCE 2015 ACTUAL 2016 BUDGET 2015 HY 2016 HY 1.0 Agriculture 1.1 Specific 1.2 Non-Specific 3.0 Fishing 3.1 Specific 3.2 Non-Specific 5.0 Power Generation 5.1 Specific 5.2 Non-Specific 6.0 Manufacturing 6.1 Specific 6.2 Non-Specific 7.0 Construction 7.1 Specific 7.2
 Non-Specific 8.0 Transport & Communication 8.1 Specific 8.2 Non-Specific 9.0 Housing 9.1 Specific 9.2 Non-Specific 10.0 Environment and Pure Water 10.1 Specific 10.2 Non-Specific 11.0 Education 11.1 Specific 11.2 Non-Specific 12.0 Health 12.1 Specific 12.2 Non-Specific 13.0 Culture/Youth 13.1 Specific 13.2 Non-Specific 14.0 National Security and Defence 14.1 Specific 14.2 Non-Specific 3,157.953 512.199 2,645.754 2.000 0.000 2.000 732.003 692.068 39.935 588.135 296.229 291.906 9,925.327 3,118.401 6,806.927
Figure: G$m Source: Ministry of Finance 79 Mid Year Report 2016 Summary of Capital Expenditure by Sector and Type of Financing APPENDIX E7 MID YEAR GOVERNMENT SUMMARY OF CAPITAL EXPENDITURE BY SECTOR AND TYPE OF FINANCING SECTOR AND SOURCE 2015 ACTUAL 2016 BUDGET 2015 HY 2016 HY 15.0 Public Safety 15.1 Specific 15.2 Non-Specific 16.0 Tourist Development 16.1 Specific 16.2 Non-Specific 17.0 Administration 17.1 Specific 17.2 Non-Specific
 18.0 Financial Transfers 17.1 Specific 17.2 Non-Specific 19.0 Social Welfare 19.1 Specific 19.2 Non-Specific 20.0 Overall Total 20.1 Specific 20.2 Non-Specific 335.336
0.000 0.000 0.000 0.000 0.000 0.000 335.336 30.157 305.179 8.878 0.000 8.878 509.859 (130.154) 640.013 891.184 0.000 891.184 788.232 533.595 254.637 30,664.882 52,183.806 9,671.739 20,993.143 21,557.000 30,626.806 6,970.568 2,509.655 4,460.913 13,201.627 3,803.753 9,397.874 Figure: G$m Source: Ministry of Finance 80 Mid Year Report 2016 Summary of Capital Expenditure by Sector and Type of Financing AGENCY 01 Office of the President 011 Administrative Services 012 Presidential Advisory E M P L O C Y O M S E T N S T 377,442 54,377 311,695 013 Defence and National Security 11,370 014 Public Policy and Planning 05 Ministry of Presidency 051 Policy Development and Administration 052 Defence and National Security 053 Public Service Management 054 Natural Resource Management 055 Citizenship and Immigration Services 02 Office of the Prime Minister 021 Prime Minister's Secretariat 151,120 5,610 27,005 40,635 33,391 23,411 23,411 ACTUAL 2015 1,065,062 1,442,504 14,047 14,047 7,513 7,513 806,584 235,406 23,072 860,961 547,101 34,442 - 498,642 36,740 251,829 306,955 649,762 42,350 278,834 347,590 81,764 115,155 244,382 244,382 267,793 267,793 - 257,761 1,175,930 1,433,691 APPENDIX E8 DETAILS OF EXPENDITURE : GENERAL SUMMARY BY PROGRAMME BUDGET 2016 MID-YEAR 2016 E
P
588,399 588,399 2,044,951 1,449,360 561,148 34,443 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 39,000 36,000 - 15,000 156,300 156,300 158,217 1,186,005 122,886 413,633 657,457 657,457 03 Ministry of Finance 3,959,813 12,491,336 16,451,149 3,424,295 031 Policy and Administration 3,578,677 9,153,478 12,732,155 3,843,693 3,827,464 23,719,137 16,559,619 7,390,808 6,987,398 12,231,977 19,622,785 3,474,554 8,387,850 15,375,248 4,051,514 3,871,514 27,148,853 19,246,762 032 Public Financial Management 381,136 3,337,858 3,718,994 3,424,295 16,229 7,159,518 403,410 3,844,127 4,247,537 3,474,554 180,000 7,902,091 04 Ministry of Foreign Affairs 1,439,120 2,002,579 3,441,700 - 041 Development of Foreign Policy 187,439 887,752 1,230,689 1,098,938 1,075,191 2,329,627 042 Foreign Policy Promotion 043 Development of Foreign Trade Policy 20,992 15,889 36,882 75,227 15,106 59,137 984
 3,516,927 1,090,297 2,388,764 1,231,504 2,440,870 3,672,374 190,067 1,024,467 1,163,576 1,259,684 1,353,643 2,284,151 37,866 16,970 17,610 34,580 07 Parliament Office 071 National Assembly 112,739 112,739 08 Auditor General 081 Office of the Auditor General 09 Public and Police Service Commission 091 Public and Police Service Commission 10 Teaching Service Commission 101 Teaching Service Commission 11 Guyana Elections Commission 111 Elections Commission 112 Elections Administration 13 Ministry of Local
 Government 131 Main Office 132 Ministry Administration 133 Regional Administration 14 Public Service Ministry 141 Public Service Management 16 Ministry of Amerindian Affairs 161 Amerindian Development 17 Ministry of Indigenous People's Affairs 161 Policy Development & Administration Figures: G$'000 Source: Ministry of Finance - - 14,789 14,789 7,948 7,948 34,382 34,382 - - - - - - - - - 235,809 235,809 - - - - - - - 299,086 299,086 976,088 976,089 643,527 643,527 75,436 75,436 83,955 83,956 3,853,698 1,750,410 2,103,288 227,656 73,782 33,094 120,780 670,899 670,899 351,280 351,279 575,048 575,048 - - - - - - - - - - - - - - - - 1,373,759 1,373,759 1,373,759 1,373,759 714,335 714,335 87,957 87,957 109,205 109,205 714,335 714,335 87,957 87,957 109,205 109,205 3,574,488 3,574,488 3,574,488 3,574,488 - - - - - - - - - - - - - - - - - - 137,027 137,027 639,506 639,506 776,533 - 81 - - - - - - - - - - - - - - - - 150,126 71,000 79,000 126 - - - - - - - - - - - - - - 3,822,500 1,424,643 2,363,151 34,706 1,373,759
 1,373,759 714,335 714,335 87,957 87,957 109,205 109,205 3,574,488 3,574,488 - - - - - - - - - 543,472 8,073 43,686 22,125 80,769 48,302 48,302 239,126 61,461 177,665 641,579 105,382 527,344 8,853 - - - - - - - 644,239 42,279 221,172 99,738 1,187,711 12,625 50,351 264,858 121,863 1,291,946 64,916 91,610 14,565 18,436 - 30,792 111,562 4,821 116,383 175,833 175,833 3,993,995 2,366,692 224,135 224,135 - 86,726 86,726 310,861 310,861 4,233,120 1,921,901 2,428,152 1,902,915 1,812,845 8,057,937 4,240,997 1,627,303
- - - - - - - - - - - - - - - - - - - - - 8,638 2,992 5,646 - - - - - - - - - - - - - - - - - - - 1,994,113 881,778 1,098,088 14,247 603,186 603,186 335,384 335,384 37,700 37,700 42,034 42,034 1,963,640 1,963,640 - - - - - - - - - 229,237 229,237 447,186 447,186 1,407,000 2,183,533 1,407,000 - 76,361 76,361 141,587 141,587 217,949 217,949 Mid-Year Report 2016 Details of Expenditure: General Summary by Programme ACTUAL 2015 BUDGET 2016 MID-YEAR 2016 APPENDIX E8 DETAILS OF EXPENDITURE : GENERAL SUMMARY BY PROGRAMME AGENCY 21 Ministry of Agriculture 211 Ministry Administration 212 Crops and Livestock Support Services 213 Fisheries 214 Hydrometeorological Services 23 Ministry of Tourism, Industry and Commerce 231 Main Office 232 Ministry Administration 233 Commerce, Industry and Consumer Affairs 22 Ministry of Tourism 221 Policy Development and Administration 222 Tourism Development 223 Consumer Protection 25 Ministry of Business 251 Policy Development and Administration 252 Business Development, Support and Promotion 253 Consumer
 Protection 24 Ministry of Natural Resources and the Environment 241 Ministry Administration 242 Natural Resource Management 243 Environmental Management 26 Ministry of Natural Resources 261 Policy Development and Administration 262 Natural Resource Management 263 Environmental Management 31 Ministry of Public Works 311 Ministry Administration 312 Public Works 313 Transport 32 Ministry of Public Infrastructure 321 Policy Development and Administration 322 Public Works 323 Transport 33 Ministry of Public
 Telecommuncation 331 Policy Development and Administration 332 Public Telecommunications 333 Tourism Development 627,939 467,606 16,002,070 16,630,009 15,568,729 16,036,335 65,693 94,640 90,042 52,511 16,955 20,576 14,813 11,949 2,864 24,466 17,744 60,653 372,688 352,679 284,331 22,203 46,145 249,557 47,113 174,093 28,351 180,443 53,626 - 126,346 467,328 442,720 336,841 39,158 66,721 264,371 59,062 174,093 31,216 204,909 71,370 6,722 126,817 133,539 106,044 106,044 371,544 25,185 78,376 267,983 - - 477,587 131,228 78,376 267,983 - - - - 1,378,959 1,759,490 380,531 46,892 332,211 1,428 208,022 20,935 186,125 962 379,644 981,725 17,590 2,456,341 1,475,502 933,453 47,386 - - 426,536 1,313,936 19,018 2,664,363 1,496,437 1,119,578 48,348 - - - - 41 Ministry of Education 2,681,232 3,347,107 6,028,339 411 Main Office 412 National Education Policy -- Imple and Sup 413 Ministry Administration 414 Training and Development 52,794 317,351 95,809 203,677 223,111 54,411 789,445 469,058 370,145 150,220 993,122 692,169 415 Education Delivery 2,105,841 1,716,842 3,822,683 44 Ministry of Culture, Youth and Sport 441 Ministry Administration 442 Culture Figures: G$'000 Source: Ministry of Finance 319,592 69,892 91,280 654,459 45,817 246,267 974,052 115,710 337,547 - - - - - - - - - - - 3,982,911 2,479,536 20,612,920 18,515,871 1,478,270 1,478,270 2,000 23,105
 235,064 - - 235,064 15,380 7,798 1,982 5,600 238,545 5,479 233,065 - - - - - - - - - 128,346 490,432 677,784 336,841 39,158 301,784 279,752 66,861 176,075 36,816 443,453 76,849 366,604 477,587 131,228 78,376 267,983 - - - - 3,443,433 5,202,923 - 426,536 3,368,935 4,682,871 74,498 93,516 4,920,332 296,773 4,380,313 243,246 7,584,695 1,793,210 5,499,891 291,594 - - - - - - - - 582,238 6,610,577 - - - 2,484 579,754 370,145 150,220 993,122 694,653 4,402,437 94,459 1,068,511 - - 115,710 337,547 E M P L O C Y O
1,068,511 - - 115,710 337,547 713,360 535,652 - 73,920 103,788 - - - - 12,172 10,972 - 1,200 93,707 66,934 19,505 7,268 - - - - 128,305 128,305 - - - - - - 643,691 92,337 548,705 2,649 332,890 67,016 265,874 - - - - - - - - - - 13,339,221 14,052,581 12,847,174 13,382,826 - 66,797 425,250 - 140,717 529,038 - - - - 23,445 5,952 12,016 5,477 574,857 133,467 - - - - 35,617 16,924 12,016 6,677 668,564 200,401 386,287 405,792 55,103 62,371 - - - - 572,123 91,136 6,450 474,537 - - - - 6,661,971 4,177,700 2,408,145 76,126 452,720 176,363 43,373 232,984 - - - - - - - - - - - - - 700,428 219,441 6,450 - - - - - 7,305,662 4,270,037 2,956,850 78,775 785,610 243,379 309,247 232,984 - - - - - - - - - 82 - - - - - - - - - - - - - - - - - - - - - 4,054,605 2,862,055 18,107,186 16,244,881 1,129,000 1,129,000 20,000 43,550 160,717 572,588 - - - - - - - - - - 35,617 16,924 12,016 6,677 547,253 1,215,817 73,500 471,603 2,150 - - - - 114,000 - - 114,000 - - - - 273,901 877,395 64,521 - - - - 814,428 219,441 6,450 114,000 - - - - 23,336,037 30,641,699 3,227,820 7,497,857 14,861,631 17,818,481 5,246,586 5,325,361 36,075 16,835 10,000 9,240 821,685 260,214 319,247 242,224 - - - - - - - - - - - - - - - - - - - - E M P L O C Y O M S E T N S T
 353,988 264,992 37,921 51,075 12,157 10,968 1,189 55,325 42,238 9,924 3,164 11,237,423 11,591,411 11,024,159 11,289,151 39,829 173,435 21,283 3,868 12,016 5,399 - 77,750 224,510 - - - - 33,441 14,836 12,016 6,588 264,539 319,864 31,560 73,798 209,450 219,374 23,529 26,692 - - - - - - 60,295 60,295 216,572 27,553 864 276,867 87,848 864 188,155 188,155 - - 326,293 47,539 277,542 1,212 144,654 36,935 107,719 - -
 1,920,081 1,302,397 607,981 9,703 224,468 77,355 21,031 126,083 - - - - - - 2,246,373 1,349,936 885,523 10,914 369,123 114,290 128,750 126,083 - - - - - - - - - - - - - - - 1,000,178 12,591,589 376,955 11,666,106 611,739 1,709 9,774 611,739 79,459 234,284 - - - - - 69,957 6,176 62,694 1,087 - - - - 33,441 14,836 12,016 6,588 389,821 79,974 282,068 27,779 23,485 23,485 - - - - 23,485 23,485 34,096 34,096 - - - 5,578,510 181,204 4,734,453 662,853 25,079 16,201 - 8,878 - - - - 310,963 87,848 864 222,251 - - - - 7,824,883 1,531,140 5,619,976 673,767 394,202 130,491 128,750 134,961 - - - - - - - - - Mid-Year Report 2016 Details of Expenditure: General Summary by Programme AGENCY 443 Youth 444 Sport 40 Ministry of Education 401 Policy Development and Administration 402 Training and Development 403 Nursery Education 404 Primary Education 405 Secondary Education 406 Post-Secondary/Tertiary Education 407 Cultural Preservation and Conservation 408 Youth 409 Sport 45 Ministry Housing and Water 451 Housing and Water 42 Ministry of Communities 421 Sustainable Communities Management 421 Sustainable Communities Development 46 Georgetown Public Hospital Corporation 461 Public Hospital 244,445 168,878 115,522 281,559 550,110 212,110 24,251 9,232 38,158 38,158 53,272 53,272 242,735 580,929 660,804 954,870
Ministry of Health 2,861,818 3,654,851 6,516,669 471 Ministry Administration 472 Diseases Control 473 Primary Health Care Services 203,649 142,361 122,509 470,155 194,306 418,536 673,804 336,667 541,045 474 Regional and Clinical Services 2,163,102 1,884,817 4,047,919 475
 Health Sciences Education 476 Standards and Technical Services 477 Rehabilitation Services 57,681 74,865 97,651 252,796 329,542 104,699 310,477 404,407 202,350 43 Ministry of Public Health 431 Policy Development and Administration 432 Diseases Control 433 Family Health Care Services 1,367,348 3,312,934 4,680,281 93,417 62,918 48,531 188,199 428,357 123,229 281,616 491,275 171,760 434 Regional and Clinical Services 1,057,871 2,258,710 3,316,582 435 Health Sciences Education 436 Standards and Technical Services 437 Disability and Rehabilitation Services 48 Ministry of Labour, Human Services and Social Sec.
481 Strategic Planning, Admin and Human Srvs 482 Social Services 483 Labour Administration 484 Child Care and Protection 24,698 31,593 48,320 108,282 183,466 22,691 132,979 215,059 71,010 479,576 5,436,015 5,915,591 71,562 201,677 87,419 118,918 46,249 117,811 5,153,216 5,354,893 113,244 123,306 200,663 242,224 49 Ministry of Social Protection 491 Policy Development & Administration 492 Social Services 493 Labour Administration 494 Child Care and Protection 227,263 3,708,828 3,936,091 42,185 79,995 44,255 60,828 51,795 93,980 3,375,615 3,455,610 170,716 110,702 214,971 171,530 - - - - - - - APPENDIX E8 DETAILS OF EXPENDITURE : GENERAL SUMMARY BY PROGRAMME ACTUAL 2015 191,372 171,003 338,744 182,051 E M P L O C Y O M S E T N S T 147,372 11,048 16,732 77,727 355,476 259,778 E M P L O C Y O M S E T N S T - - BUDGET 2016 - - - - 1,606,107 4,424,141 6,030,247 - 1,266,456 7,296,703 4,973,090 11,084,202 16,057,292 - - - - E M P L O C Y O M S E T N S T C H A O T R H G E E S R MID-YEAR 2016
 - - - - - - 3,773,118 19,830,410 2,329,546 3,636,377 5,965,923 - 1,393,439 7,359,362 54,452 92,871 271,321 104,974 1,678,633 2,150,145 1,913,216 2,874,720 1,319,886 4,500,333 320,594 198,280 178,076 443,416 800,684 545,928 443,479 158,174 409,012 464,127 866,522
 641,760 336,250 852,428 1,264,811 17,359 25,718 48,268 41,153 883,881 667,478 384,518 893,581 166,056 1,430,867 1,315,555 4,757,660 309,078 1,167,492 1,476,570 972,649 2,449,219 - - - - - - - - - 10,514 204,052 21,601 65,303 497,693 953,858 797,926 1,301,732 651,180 598,167 359,018 933,094 973,001 1,459,107 1,282,877 1,836,652 1,624,181 2,057,274 1,641,895 2,769,746 243,530 1,561,779 1,614,750 1,565,697 3,180,447 651,794 1,850,043 19,623 50,040 - 225,589 108,083 - 2,058,091 2,058,091 2,321,342 2,321,341 632,448 105,129 48,881 30,423 - - 2,809,657 3,442,105 634,275 139,260 383,676 - - 739,404 188,141 414,099 - - 2,765,310 3,134,889 201,586 1,229,760 1,431,346 540,899 696,487 201,586 2,224,411 2,438,403 59,312 59,312 4,010,772 4,010,772 80,310 6,596,979 - - - 74,809 5,501 - - 673,804 336,667 541,045 4,122,728 315,978 404,407 202,350 - - - - - - - - - - - 353,395 876,365 554,981 876,365 - - - - - - - - - - - - - - - - - - - - 101,105 201,000 311,954 - - 840,509 389,141 726,053 - - 5,317,274 6,748,620 724,190 1,279,171 4,593,084 5,469,449 - - - - - - - - - - - - - - - - - - - - 46,963 19,658 12,797 281,871 30,579 135,715 - - 106,757 106,757 - - 134,641 124,586 10,055 - - 328,834 50,237 148,512 - - 241,398 231,343 10,055 - - - - - - - - - - 516,131 5,196,412 4,988,701 12,006,953 16,995,654 - 2,025,633 19,021,287 2,589,906 5,273,151 7,863,056 15,245 74,454 13,530 296,861 565,729 185,290 350,334 243,104 202,932 798,423 1,209,911 703,430 1,148,757 1,453,015 906,362 57,210
5,354,893 201,365 242,224 - - - - - - - - - - - - - - - 3,992,328 802,229 12,913,144 13,715,373 102,960 3,468,366 226,214 194,788 123,293 335,320 135,731 207,885 126,291 249,584 12,213,491 12,548,811 309,570 263,792 445,301 471,677 - - 702 - 56,237 8,980 12,756 11,243 23,258 - - - - - - - - - - - - - - - - - - - - 208,900 13,924,273 403,445 5,994,132 6,397,578 36,200 83,000 39,200 50,500 285,784 12,631,811 484,501 522,177 65,708 172,534 61,852 103,352 30,691 96,398 5,718,621 5,891,155 153,503 91,318 215,354 194,670 - - - - - 8,259 35,296 78,681 - - 337,093 85,533 227,193 - - 874,088 1,115,486 105,113 768,975 336,456 779,030 - - - - - - - - - - - - - - 223,729 8,086,785 12,518 102,264 - 399,552 707,976 399,499 108,947 6,055,798 - - - - - - - 202,251 204,940 116,769 - - - - - 52,764 6,450,342 12,042 20,392 15,633 4,698 108,440 5,911,547 230,987 199,368 - - - - - - - - - - - 51 Ministry of Home Affairs 4,598,574 2,909,724 7,508,298 19,717 56,744 7,584,760 - - - Figures: G$'000 Source: Ministry of Finance 83 Mid-Year Report 2016 Details of Expenditure: General Summary by Programme ACTUAL 2015 BUDGET 2016 MID-YEAR 2016 APPENDIX E8 DETAILS OF EXPENDITURE : GENERAL SUMMARY BY PROGRAMME AGENCY C
511 Secretariat Services 237,194 175,334 412,528 - 412,528 512 Guyana Police Force 3,458,000 2,036,680 5,494,680 3,569 55,814 5,554,063 410,208 4,143 393,122 56,667 39,240 478,164 3,440 146,653 42,887 26,566 888,372 7,583 539,775 99,554
 65,806 16,148 - - 931 - - 888,372 23,731 540,706 99,554 65,806 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2,033,598 1,524,841 3,558,439 8,150 483,488 4,050,078 7,462,484 4,926,182 12,388,666 30,500 2,115,712 14,534,878 3,815,021 1,784,022 5,599,043 13,190 341,992 5,954,225 513 Guyana Prison Service 514 Police Complaints Authority 515 Guyana Fire Service 516 General Register Offices 517 Customs Anti Narcotics Unit 54 Ministry of Public Security 541 Policy Development and Administration 542 Police Force 543 Prison Service 544 Police Complaints Authority 545 Fire Service 546 Customs Anti-Narcotics Unit 52 Ministry of Legal Affairs 521 Main Office 522 Ministry Administration 523 Attorney General's Chambers 524 State Solicitor 525 Deeds Registry 97,712 92,435 190,147 1,487,160 1,052,006 2,539,166 2,379 214,146 3,534 191,865 39,181 191,856 17,818 22,462 130,855 20,721 - 213,878 3,604 141,115 21,803 722,211 10,816 22,175 684,121 5,099 - 428,024 7,138 332,980 60,984 914,067 28,634 44,637 814,976 25,820 - 53 Guyana Defence Force 4,114,933 531 Defence and Security Support 4,114,933 4,902,244 4,902,244 9,017,177
 9,017,177 55 Supreme Court - 1,312,779 1,312,779 551 Supreme Court of Judicature 1,312,779 1,312,779 552 Magistracy 56 Public Prosecutions 561 Public Prosecutions 57 Office of the Ombudsman 571 Ombudsman 58 Public Service Appellate Tribunal 581 Public Service Appellate Tribunal 59 Ethnic Relations Commission Ethnic Relations Commission 60 Judicial Service Commission 601 Judicial Service Commission 61 Rights Commissions of Guyana 611 Rights Commissions of Guyana 62 Public Procurement Commission 621 Public
 Procurement Commission 71 Region 1: Barima/Waini 711 Regional Administration and Finance 712 Public Works Figures: G$'000 Source: Ministry of Finance - 115,435 115,435 17,667 17,667 1,202 1,202 27,596 27,596 2,340 2,340 31,484 31,484 66,741 66,741 13,939 13,939 623 623 27,596 27,596 2,340 2,340 31,484 31,484 - - 48,694 48,694 3,728 3,728 579 579 - - - - 824,059 925,402 1,749,461 35,346 28,969 118,027 186,750 153,373 215,719 5,771 - - - 13,569 13,569 11,056 11,056 - - - - - - 7,426 - - 23,074 - - - - - - - - - 31,538 268,905 87,682 1,190 94,174 - 20,533 - 20,100 - 434 - 536,298 536,298 32,049 12,128 19,920 - - - - - - - - - - 221,685 2,810,450 515,706 14,099 427,154 60,984 934,601 28,634 64,737 814,976 26,254 - 9,553,475 9,553,475 1,344,828 1,324,907 19,920 129,004 129,004 28,723 28,723 1,202 1,202 27,596 27,596 2,340 2,340 31,484 31,484 - - 4,762,040 4,762,040 4,819,827 4,819,827 9,581,867 9,581,867 - - - - - - 1,532,287 1,532,287 1,532,287 1,532,287 - - 8,063
265,516 37,000 146,313 125,750 12,500 - 8,063 1,164,023 9,992,797 1,949,291 20,567 1,212,749 195,451 1,654,517 156,747 56,955 1,405,354 35,461 - - 543,000 543,000 10,124,867 10,124,867 2,508,826 2,508,826 2,364,266 2,364,266 4,873,092 4,873,092 - - - - 725,134 725,134 57,586 57,586 14,349 14,349 953 953
 23,487 23,487 3,731 3,731 45,859 45,859 725,134 725,134 - 57,586 57,586 14,349 14,349 953 953 23,487 23,487 3,731 3,731 45,859 45,859 - - - - - - - 1,532,287 1,532,287 - 160,090 160,090 44,756 44,756 12,499 12,499 81,446 81,446 10,020 10,020 121,420 121,420 1 1 9,187 - - - - - - 42,907 212,940 22,976 1,078 61,822 268 16,602 - 10,301 6,302 306,892 4,468,183 617,180 18,641 471,137 72,191 832,207 13,650 30,838 774,911 12,809 - 144,179 144,179 5,017,271 5,017,271 - - - - - - 725,134 725,134 - 57,586 57,586 14,349 14,349 953 953 23,487 23,487 3,731 3,731 45,859 45,859 119,190 1,868,651 930,061 1,090,880 2,020,941 - 325,000 2,345,941 437,746 292,006 729,752 - 109,489 839,241 3,298 7,417 156,671 223,135 43,859 31,060 125,979 219,631 169,838 250,691 6,150 92,146 175,988 342,837 22,812 15,262 32,773 44,572 55,585 59,834 3,858 19,330 59,443 79,164 84 Mid-Year Report 2016 Details of Expenditure: General Summary by Programme APPENDIX E8 DETAILS OF EXPENDITURE : GENERAL SUMMARY BY PROGRAMME ACTUAL 2015 337,289 283,336 925,679 454,690 E M P L O C Y O M S E T N S T 588,390 171,354 55,179 53,296 980,858 507,986 E M P L O C Y O M S E T N S T 649,840 205,302 BUDGET 2016 C H A O T R H G E E S R A P P R E X P E C O N U P D
379,277 365,993 1,029,117 571,295 103,472 123,232 1,132,589 694,527 E M P L O C Y O M S E T N S T 300,355 99,317 MID-YEAR 2016 C
82,189 132,472 382,544 231,790 36,871 49,430 419,415 281,220 AGENCY 713 Education Delivery 714 Health Services 72 Region 2: Poomeroon/Supernaam 721 Regional Administration and Finance 722 Agriculture 723 Public Works 724 Education Delivery 725 Health Services 73 Region 3: Essequibo Islands/ West Demerara 731 Regional Administration and Finance 732 Agriculture 733 Public Works 734 Education Delivery 735 Health Services 74 Region 4: Demerara/Mahaica 741 Regional Administration and Finance 742 Agriculture 743 Public Works 744 Education Delivery 745 Health Services 1,428,792 1,140,933 2,569,725 85,886 60,218 27,717 971,793 283,178 74,433 197,710 63,820 491,896 313,074 160,319 257,928 91,537 1,463,689 596,252 2,231,970 1,176,122 3,408,092 94,145 65,200 14,913 1,658,335 399,377 .. 75,095 178,678 63,900 354,427 504,022 169,240 243,878 78,813 2,012,762 903,399 2,591,778 1,291,956 3,883,734 69,457 78,194 21,844 2,263,201 159,082 78,135 182,274 91,234 544,716 395,597 147,592 260,468 113,078 2,807,917 554,679 75 Region 5: Mahaica/Berbice 1,131,945 734,090 1,866,035 751 Regional Administration and Finance 752 Agriculture 753 Public Works 754 Education Delivery 755 Health Services 76 Region 6: East Berbice/ Corentyne 761 Regional Administration and Finance 762 Agriculture 763 Public Works 764 Education Delivery 765 Health Services 77 Region 7: Cuyuni/Mazaruni 771 Regional
 Administration and Finance 772 Public Works 773 Education Delivery 774 Health Services 78 Region 8: Potaro/Siparuni 781 Regional Administration and Finance 782 Public Works 783 Education Delivery 784 Health Services 785 Agriculture 79 Region 9: Upper Takatu/Upper Essequibo 791 Regional Administration and Finance 792 Agriculture 793 Public Works Figures: G$'000 Source: Ministry of Finance 51,723 4,171 29,627 864,674 181,750 66,195 112,747 72,130 273,977 209,041 117,918 116,918 101,757 1,138,651 390,791
- 702,313 509,093 1,211,406 37,784 10,992 12,406 87,328 20,165 100,618 125,112 31,157 113,024 - - - - - - - - 4,841,651
- 177,192 148,407 1,018,826 421,838 974,809 97,617 148,440 505,849 222,904 - 51,361 10,467 519,342 201,759 324,491 30,244 19,163 184,626 90,458 - 131,732 135,278 572,174
19,163 184,626 90,458 - - - - - - - - - 982,603
5,906
139,611 161,718 70,078 291,441 23,295 5,906 6,744 41,311 4,411 30,185 64,606 10,317 36,928 - - - - - - - - Mid-Year Report 2016 Details of Expenditure: General Summary by Programme APPENDIX E8 DETAILS OF EXPENDITURE : GENERAL SUMMARY BY PROGRAMME AGENCY 794 Education Delivery 795 Health Services 80 Region 10: Upper Demerara/Upper Berbice 801 Regional Administration and Finance 802 Public Works 803 Education Delivery 804 Health Services Grand Total E M P L O C Y O M S E T N S T 506,507 134,624 ACTUAL 2015 182,788 118,194 689,295 252,818 - 39,884 30,315 729,179 283,133 - E M P L O C Y O M S E T
 N S T 566,438 154,443 BUDGET 2016 294,640 199,140 861,078 353,583 1,430,429 851,570 2,281,999 - 150,324 2,432,323 1,461,893 1,153,094 2,614,987 - 64,149 9,499 1,177,458 179,323 91,024 101,069 427,934 231,543 155,173 110,568 1,605,392 410,866 21,498 62,322 38,213 28,291 176,671 172,890 1,643,605 439,157 76,038 10,647 1,172,369 202,839 113,548 165,068 544,714 329,764
 189,586 175,715 1,717,083 532,603 110,105 70,839 412,941 34,000 208,744 87,683 82,514 971,183 424,422 3,027,928 223,586 384,459 1,804,766 615,117 E M P L O C Y O M S E T N S T 285,761 76,059 749,377 38,739 6,670 599,243 104,724 MID-YEAR 2016 90,983 33,181 376,743 109,240 469,455 1,218,831 - Figures: G$'000 Source: Ministry of Finance 86 Mid-Year Report 2016 Details of Expenditure: General Summary by Programme APPENDIX E9 MID-YEAR CENTRAL GOVERNMENT ABSTRACT OF REVENUE BY HEAD ITEM 2015 ACTUAL 2016 BUDGET 2015 HY 2016 HY 2016 REVISED TOTAL REVENUE 182,670,540 205,060,012 84,417,769 92,740,419 209,821,555 TOTAL CURRENT RECEIPTS 161,710,235 173,324,661 78,338,834 85,920,502 179,902,214 CURRENT RECEIPTS TAXES CUSTOMS AND
 TRADE TAXES 13,156,259 13,452,935 5,936,070 6,499,142 13,758,185 VALUE-ADDED AND EXCISE TAXES 68,806,846 72,539,111 33,328,279 32,113,363 71,481,428 INTERNAL REVENUE 60,933,189 64,414,691 31,592,738 36,536,744 68,473,353 STAMP DUTIES OTHER TAX REVENUE FEES, FINES, ETC.
416,244 528,891 215,763 143,018 - 4,000 - 26 588,891 4,000 I II III IV V XI FINES, FEES.

ETC.

1,175,914 1,274,490 535,763 656,238 1,394,490 REVENUE FROM PROPERTY AND ENTERPRISE XII INTEREST 1,730 1,002,034 841 896 1,002,034 XIII RENTS, ROYALTIES, ETC.
8,832 3,869,347 5,239 2,339,168 5,205,360 XIV LAND DEVELOPMENT SCHEMES XV DIVIDENDS AND TRANSFERS 12,391,796 14,245,000 3,512,731 4,376,069 14,291,069 MISCELLANEOUS RECEIPTS XVI MISCELLANEOUS RECEIPTS 4,819,425 1,994,163 3,211,411 3,255,837 3,703,404 TOTAL CAPITAL RECEIPTS 20,960,304 31,735,350 6,078,935 6,819,917 29,919,341 CAPITAL RECEIPTS XXI MISCELLANEOUS CAPITAL REVENUE 2,484,668 1,489,668 - 742,334 1,489,668 XXII EXTERNAL GRANTS 3,844,500 14,313,682 211,849 3,333,146 13,715,423 XXIV EXTERNAL LOANS 14,631,136 15,932,000 5,867,085 2,744,437 14,714,250 Figure: G$'000 Source: Ministry of Finance 87 Mid-Year Report 2016 Central Government Abstract of Revenue by Head APPENDIX E10 MID-YEAR CENTRAL GOVERNMENT TAX REMISSIONS BY CATEGORY ITEM 2015 HY 2016 HY TOTAL TAX REMISSIONS 26,432,984 20,669,571 I II III IV V VI HOSPITALS 67,143 133,071 COMPANIES/BUSINESSES 20,236,999 14,746,180 CHURCHES/CHARITABLE ORGANISATIONS 1,264,779 1,121,081 PUBLIC OFFICIALS/OFFICERS 664,453 749,541 DEPARTMENTS REMIGRANTS 2,130,307 1,699,658 811,431 830,059 VII DIPLOMATS 634,012 963,530 VIII FOREIGN FUNDED PROJECTS 623,860 426,451 Figure: G$'000 Source: Ministry of Finance 88 Mid-Year Report 2016 Central Government Tax Remissions by Category APPENDIX F1 MID-YEAR EXTERNAL DEBT STOCK SUMMARY ITEM 2015 ACTUAL 2016 BUDGET 2015 HY 2016 HY 2016 REVISED TOTAL EXTERNAL DEBT 1,143.09 1,192.44 1,175.06 1,143.58 1,192.51 1.0 Multilateral IBRD IDA IADB CDB CMCF IMF IFAD EEC EIB OPEC FUND CDF 2.0 Bilateral 2.1 Paris Club Creditors: USA -PL 480 UK
 Canada Germany -KFW Netherlands Denmark Norway Sweden France Japan T&T Russia Italy 2.2 Non-Paris Club Creditors: Venezuela Argentina Kuwait Libya China India UAE Bulgaria Serbia 3.0 Private Creditors 3.1 Suppliers 1/ 3.2 Financial Markets/Bonds 2/ 0.00
Notes: 1/ Includes EPDS Debts 2/ Includes Bonds (Ruston Bucyrus), Lloyds Bank (O/Draft), and Barclays Bank Debts Figures: US$m Source: Ministry of Finance 89 Mid-Year Report 2016 External Debt Stock Summary APPENDIX F2 MID-YEAR DOMESTIC DEBT STOCK SUMMARY ITEM 2015 ACTUAL 2016 BUDGET 2015 HY 2016 HY 2016 REVISED TOTAL DOMESTIC DEBT Domestic Securities Treasury Bills 91-Day 1/ 182-Day 364-Day Debentures 2/ Bonds Domestic Loans National Insurance Scheme Loan 395.59 393.89 375.00 43.02 1.23 330.74 18.88 0.02 1.70 1.70 419.64 418.11 399.21 43.02 15.76 340.43 18.88 0.02 1.53
 1.53 Notes: 1/ Includes K-Series 2/ Excludes Bank of Guyana Non-interest Bearing Debentures Figures: US$m Source: Ministry of Finance 90 Mid-Year Report 2016 Domestic Debt Stock Summary APPENDIX G1 MID-YEAR EXPENDITURE OF KEY SECTORS SECTOR 2015 Actual 2016 Budget 2015 HY 2016 HY Education 31,793,837,000 40,336,596,000
 11,668,054,155 15,535,087,000 Health 22,070,101,000 28,059,034,000 8,235,064,045 11,486,427,878 Agriculture 22,352,394,000 20,249,630,000 6,419,263,319 13,403,497,861 Infrastructure 11,216,978,000 23,396,649,000 4,408,552,872 5,952,880,000 GRAND TOTAL 87,433,310,000 112,041,909,000 30,730,934,391 46,377,892,739 Figures: G$ Source: Ministry of Finance 91 Mid-Year Report 2016 Expenditure of Key Sectors APPENDIX H1 Status of Projects in the Pipeline as of June 30, 2016 Name of Project Summary Description Development Partner Estimated Amount Current Status Agriculture, Fisheries and Forestry This project will support the development of inclusive local-level agricultural value chains with the objective of further building local productive, processing and technical capacities and strengthening market access for poor indigenous and non-indigenous rural households in Regions 1 and 9.
Hinterland Environmentally Sustainable Agricultural Development Project International Fund for Agriculture Development US$10.25 M Sustainable Agricultural Development Programme Loans The main objective of the Programme is to increase the productivity of the agricultural sector while maintaining sustainable and climate resilient use of natural resources in Guyana.
Project impact will be achieved through a combination of institutional strengthening, research, extension of existing facilities and support to farmers for technology adoption.

It is expected that higher productivity will also reduce pressure on forest and fragile ecosystems, and at the same time increase incomes for small and medium-sized farmers.

Activities will be concentrated in Regions 9 and 10, where agricultural potential and availability of natural resources are greater.
More than 3,500 farmers, including indigenous communities, which represent more than 89% of the population of Region 9, will benefit from the Programme.

Inter-American Development Bank US$15 M Revive fruits, vegetables and small scale farming in areas that have been neglected and are in serious disrepair, specifically Buxton, Triumph and Ithaca.

Rural Agricultural Infrastructure Development Project CARICOM Development Fund US$11 M A Design Mission was conducted during the period June 8 - 14, 2016.
Discussions were had regarding the project components and a site visit was conducted to Region 9.

A follow-up Mission is planned for August 8 - 18, 2016 to conclude preparation activities.

This project is expected to be presented to the Executive Board on October 6, 2016 for approval.

Project Profile has been submitted and project documents are being prepared for presentation to the Board.

Project Proposal was presented to the CDF Board on July 21, 2016.

The Board has approved in principle.


However, due to the lack of a quorum, the 'Round Robin' approval has been sought to facilitate formal approval.

Further, GoG was requested to submit the environmental and social safeguards baseline and the anticipated impact of the project to the Board for approval.
Acquisition of Fixed and Mobile Pumps and associated structures and spares The project entails the procurement of nine (9) Fixed Axial Flow pumps for Regions 2, 3, 4, 5 and 6 and five (5) Mobile Hydro Flow pumps to serve Georgetown and its environs.

India US$4 M Project proposal is currently being reviewed by the Government of India.
Grants Support for Agricultural Sustainable Development Programme The Technical Cooperation (TC) will finance specialised consulting services that will provide specific inputs to support the design and implementation of the 'Agricultural Sustainable Development Programme' which will be executed in collaboration with the Ministry of Agriculture.

This TC will also contribute to the improvement of agricultural services in Guyana and enhance the competitiveness of the agricultural sector.
Inter-American Development Bank US$200,000 The IDB in collaboration with the Ministry of Finance fielded the project Identification Mission during the period April 11-18, 2016.

A work plan for the submission of a loan proposal to the IDB Board was agreed upon between the IDB and GoG.

The loan proposal is currently under preparation.
Source: Ministry of Finance 92 Mid-Year Report 2016 Status of Projects (Loans and Grants) in the Pipeline APPENDIX H1 Status of Projects in the Pipeline as of June 30, 2016 Name of Project Summary Description Development Partner Estimated Amount Current Status Single Window Automated Processing System (SWAPS) Loans Enhancing the National Quality Infrastructure for Economic Diversification and Trade Promotion Support for the Private Sector Development Project Grants Agriculture, Fisheries and Forestry Trade, Industry and Business Development This project will facilitate the reduction of the transaction cost of importing and exporting products by simplifying, harmonising and electronically integrating (through SWAPS) the business processes of the licensing bodies that account for the transactions associated with approximately 90% of Guyana's import/export trade.
It will also link the licensing bodies to the Customs and Trade Administration thereby facilitating the sharing of information and enhancing the efficiency with which trade transactions are performed.

Caribbean Development Bank US$4 M The objective of the programme is to support economic diversification and exports through the enhancement of the National Quality Infrastructure (NQI) and other trade related testing facilities and through a National Export and Investment Promotion Strategy.
Inter-American Development Bank US$9 M This Technical Cooperation is geared towards strengthening the capacity of the Ministry of Business in the following areas: (i) Developing an information system for the network of laboratories; (ii) Improving data gathering capabilities on exporters needs on quality and standards; and (iii) Improving information dissemination, awareness and capacity building among stakeholders.
Inter-American Development Bank (Compete Caribbean) US$500,000 Technical Assistance (TA) for the establishment of a National Development Bank The technical assistance will support the execution of a study to quantify the demand for development finance resources by target groups so as to inform the feasibility of establishing a National Development Bank.
Caribbean Development Bank US$97,000 East Coast Demerara Public Road Widening and Improvement Project - Better Hope to Belfield Loans Procurement of Ferry Vessel Project The project entails the widening of the main access road between Better Hope and Belfield, East Coast Demerara.

The mobility and accessibility of the population will be improved as a result of the extension of this roadway which links Georgetown to numerous highly populated villages along the East Coast Demerara Public Road.
Public Infrastructure China US$46.9 M The Project entails the construction and delivery of a passenger-cargo ferry vessel to ply the Georgetown - Port Kaituma route, North-West District.

It is expected to connect Region 1's population of 27,000 with the Capital City, Georgetown.

India US$10 M The proposal was submitted to the Caribbean Development Bank (CDB) and is awaiting approval.
The CDB fielded a mission to Guyana during the period June 30 - July 1, 2016 to understand the institutional recommendations required to implement SWAPS.

Project Profile has been submitted and project documents are being prepared for presentation to the Board.

Project Identification Mission was fielded during the period March 7-11, 2016.

The IDB Technical Team is currently preparing the operation documents for the Technical Cooperation.

The CDB is actively considering this application.


The Government of Guyana is awaiting the Government of China's approval of the loan agreement which will facilitate the signing of a Framework Agreement and Loan Agreement.

The Government of Guyana is awaiting approval of the Loan from the Exim Bank of India.

The Government of India has approved the grant component to procure the ferry vessel.
Source: Ministry of Finance 93 Mid-Year Report 2016 Status of Projects (Loans and Grants) in the Pipeline APPENDIX H1 Status of Projects in the Pipeline as of June 30, 2016 Name of Project Summary Description Development Partner Estimated Amount Current Status The project entails the construction of a road from Parika to Bonasika River; from Bonasika River to Itaka Creek; and from Itaka Creek to Essequibo River at Urisirima.
It is expected to offer an improved alternative route to the Hinterland with reduced travel time and cost, while increasing access to farmlands in Region No.

3.
3.

Agriculture, Fisheries and Forestry Construction of the Del Conte Road - Parika to Goshen Integrated Coastal Zone Management CRIS number: 2016/039309 Financed under the 11th European Development Fund National Indicative Programme The objective of the programme is to support the effective implementation of the new 2015 Policy including harmonising the legal framework, developing updated disaster risk management (DRM) policies and enhancing coordination of agencies.
Flood protection policy implementation requires the continued implementation of a robust risk-informed sea and river defence (SRD) investment plan complemented by increased drainage capacity in critical flood risk areas.

The overall objective of the programme is the promotion of disaster risk management practices through an Integrated Coastal Zone Management (ICZM) approach in line with the approved 2015 Sea and River Defence Policy and Strategy.
Grants United Kingdom Caribbean Infrastructure Development Programme The programme includes several infrastructural development projects: • Rehabilitation of Selected Aerodromes & New Bridge Construction at Mackenzie/Wismar- The project will ensure efficiency, safety and quality of national air transport through the rehabilitation of selected aerodromes and improve coast/hinterland connection through a new bridge over the Demerara River at Mackenzie/Wismar.
The project aims to enhance spatial integration, national mobility and enable national/international access to ports.

• Rehabilitation and Improvements to Selected Water Supply Infrastructure- The project is geared towards upgrading water supply facilities throughout the widespread range of Water Supply Systems in Regions 1, 3-4, 6 and 8-9 in Guyana.
This project will result in the increase in the treated water coverage to 76% after the construction of six (6) new and expansion of two (2) Water Treatment Plants (WTPs).

• Rehabilitation of Selected Water Transport Infrastructure and Sea/River Defences- The capital infrastructure project will improve efficiency, safety and quality of water transport, to enhance climate resilience of coastal communities and to enable dredging of rapidly silting river mouths and therefore maintaining ports’ capacities.
The expected impact is the enhanced quality of life, security of livelihoods and speed of economic growth due to more efficient use of natural water resources for transport, effective protection from adverse effects of climate change and ports operating at high capacity due to frequent dredging.

Feasibility study is currently being finalised.


China Either US$197.8 M (Flexible Pavement) or US$142.8 M (All Weather Road) plus US$5.2 M (Alternative route for squatters on the reserve) All necessary documentation are being prepared to be submitted to the EU for approval by the Board of Governors.

European Union Euros 30 M A Mission is scheduled to be conducted in early July, 2016.
The mission will facilitate the preparation of Technical Assistance to conduct feasibility studies and prepare project documents for identified projects.

United Kingdom Caribbean Infrastructure Fund £53.2 M Procurement of Ferry Vessel This grant will augment the loan of US$10 M which is earmarked for the procurement of the ferry vessel to ply the Georgetown - Port Kaituma route.
India US$8 M Grants Guyana Protected Areas System (GPAS) Phase III Project The GPAS III will strengthen the site level management of the National Protected Areas System and provide training to Protected Areas Commission (PAC) staff and communities adjacent to designated Protected Areas.

This intervention is expected to foster effective management of the National Protected Areas System and contribute to the conservation of biodiversity in Guyana.
Energy and Environment The Federal Republic of Germany Euros 4.8 M The Government of India has approved the grant component to procure the ferry vessel.

Project proposal is currently being finalised by Germany.
Source: Ministry of Finance 94 Mid-Year Report 2016 Status of Projects (Loans and Grants) in the Pipeline APPENDIX H1 Status of Projects in the Pipeline as of June 30, 2016 Name of Project Summary Description Development Partner Estimated Amount Current Status Agriculture, Fisheries and Forestry Human and Social Development This project will represent the first phase of a comprehensive countrywide reform of the TVET system at the secondary level.
The objective would be to improve the learning outcomes of students in TVET at the secondary level and expand the supply of certified and employable labour in Guyana consistent with the market demands for improved national productivity and economic competitiveness.
The scope of work will include improving infrastructure and the provision of equipment to meet facility standards required for the Caribbean Vocational Qualification (CVQ) for four Secondary Schools (in Regions 1,7,8 & 9) and three Practical Instruction Centers (in Regions 3,4 & 5), which will serve as hubs for various secondary schools.
Technical Vocational Education and Training (TVET) Programme Caribbean Development Bank US$7.5 M Loans Education Sector Improvement Project This project has two major components which will provide support the Ministry of Education (MoE) and the University of Guyana (UG).

The activities under the MoE (with a budget of US$ 5.9 million) will focus on improving the quality of education through curriculum reform for Nursery, Primary and Lower Secondary Education levels.
The activities under the University of Guyana (with a budget of US$6.9 million) will focus on strengthening the Health Science Faculty, with the aim of having the medical programme re-accredited.

World Bank US$14 M An Appraisal Mission was conducted during the period June 27 - July 8, 2016.

Discussions were had regarding the project components and visits were undertaken to the seven proposed sites for the project.
Project profiles, schematic drawings and preliminary cost estimates for the infrastructural activities are currently being prepared.

This project is expected to be presented to the Board of Directors in October, 2016.

A preparation mission will be conducted during the period July 11 - 14, 2016.

Support to Improve Maternal and Child Health The objective of this project is to contribute to the reduction of maternal, perinatal, and neonatal deaths in Guyana.
To meet this objective, the project has preliminarily identified the following components (i) Strengthening reproductive, maternal, and neonatal health services; and (ii) Strengthening the healthcare delivery system.

Inter-American Development Bank US$5 M Project profile has been submitted and project documents are being prepared for presentation to the Board.
The project aims to modernize three (3) existing hospitals at Suddie, West Demerara and Bartica, by transforming them into state-of-the-art centres of excellence.

The three (3) facilities are expected to offer enhanced service delivery, training to healthcare providers and research services.

Modernising Primary Healthcare Facilities Project India US$14 M This Technical Cooperation is an intervention targeting the reduction of maternal, infant and child mortality in Guyana.
Health Sector Development Project Grants Social Protection Strategy The Technical Cooperation will assist the GoG in establishing a Social Strategy which will detail interventions and resources required to tackle social development issues.

Inter-American Development Bank US$350,000 Inter-American Development Bank US$350,000 The Government of Guyana submitted project profiles and preliminary floor plans to the Government of India for consideration on 22 June, 2016.
The Government of Guyana is currently awaiting feedback from the Government of India.

The project Identification Mission was fielded during the period May 9-13, 2016.

The IDB Technical Team conducted meetings and site visits to obtain data for the preparation of the project proposal for the development of the Technical Cooperation .

The request is currently being processed and necessary actions are being taken by the IDB towards the advancement of the Technical Assistance.
Source: Ministry of Finance 95 Mid-Year Report 2016 Status of Projects (Loans and Grants) in the Pipeline APPENDIX H1 Status of Projects in the Pipeline as of June 30, 2016 Name of Project Summary Description Development Partner Estimated Amount Current Status Grants Construction of the Institute of Creative Arts Agriculture, Fisheries and Forestry The project entails the construction of an edifice to accommodate the Institute of the Creative Arts.
It is envisaged that the institute will provide technical support to community creative arts programmes and complement existing public and private post-secondary creative arts education programmes.

Government of Mexico Infrastructure Fund for Meso-American and the Caribbean Countries, Yucatan Agreement US$2 M The project proposal is currently being reviewed by the Ministry of Finance of Mexico.
Modernisation of the Justice Administration System Loans National Payment System Governance and Public Administration This programme will include the drafting of Cyber Legislation and the Institutional Strengthening of the Judicial System across Guyana with special emphasis of the AG's Chambers.
Through this project, steps will be taken towards the reform of the criminal justice system This project will be aimed at establishing national payment system infrastructure, in tandem with appropriate policy reforms, to enable substantial efficiency gains for the economy and contribute to the safety and stability of the financial system.
Inter-American Development Bank US$8 M World Bank US$5 M Modernisation of the Valuation Division of the Ministry of Finance This Technical Cooperation is aimed at improving the real property tax assessment system in Guyana by strengthening and modernising the current Valuation Division of the Ministry of Finance.
Inter-American Development Bank US$300,000 Systems Review of the Guyana Revenue Authority This Technical Cooperation will finance a comprehensive Systems Review of the operations of the Guyana Revenue Authority (GRA).

The review is aimed at fostering efficiency and accountability into the operations of the GRA.
Inter-American Development Bank US$500,000 Strengthening the Integrity of Financial Systems Project Grants This Technical Cooperation will support Guyana in its efforts to prevent money laundering and terrorist financing, by complying with the Financial Action Task Force (FATF) Standards on combating Money Laundering and Financing of Terrorism.
Inter-American Development Bank (Regional Technical Cooperation) US$700,000 Support for the development of Regional Action Plans This Technical Cooperation will support the expansion of activities executed under the "Programme to implement the External Pillar of the Medium-Term Action Plan for Development Effectiveness (PRODEV) for improved Results Based Budgeting and Monitoring and Evaluation."

The TA will support the drafting of Regional Action Plans.
Inter-American Development Bank US$200,000 Support to improve on the achievements of the Basic Education Access and Management Support (BEAMS) Project This Technical Assistance seeks to determine the extent to which programmes designed under BEAMS are being implemented in schools.

It will finance an ex-post evaluation to identify successes of the programme, gaps in programme design and implementation; and make recommendations towards improving the outcomes of BEAMS.
Information emanating from this Technical Cooperation will support the design of a new project in the Education Sector.

Inter-American Development Bank (Italian Trust Fund) US$450,000 This Technical Cooperation will assist the GoG in undertaking the relevant studies for developing sustainable cities in Guyana.
Community Development Inter-American Development Bank TBD Grants Sustainable Cities Initiative *TBD - To Be Determined Project Profile has been submitted and project documents are being prepared for presentation to the Board A project scoping mission is scheduled for August 8 - 12, 2016.

The project scoping mission will be mounted during the period July 14-15, 2016.

The project scoping mission will be mounted during the period July 14-15, 2016.
The IDB is awaiting the report of the National Risk Assessment (NRA) which is being completed with the assistance of the World Bank.

The NRA and the accompanying strategic and action plan will inform interventions under the IDB Regional TC.

The IDB is in the process of identifying available Technical Assistance resources for the execution of the project.

The Ministry of Finance formally requested Technical Assistance support for the project on June 17, 2016.
The request is currently being reviewed by the Technical Team of the IDB.

The IDB is in the process of identifying an appropriate methodology and available Technical Assistance resources for the execution of the project.

Source: Ministry of Finance 96 Mid-Year Report 2016 Status of Projects (Loans and Grants) in the Pipeline