The Inter-American Develop-ment Bank's (IDB) consideration of the US$18M loan for Guyana's information and communications technology (ICT) project will await the government and the phone company reaching an understanding on a modern and efficient telecommunications framework.
Resident Representative of the IDB in Guyana, Sergio Varas Olea, told Stabroek News that for the US$22M ICT project to be successful, it would need a conducive environment. He said the bank would like to see an agreement negotiated between the government and the phone company which specifies the rules of the game for a modern and efficient framework in which the project would succeed.
He said while both the government and the bank would like to see the ICT project move ahead as soon as possible, the parties were aware of the need for the project to be solidly grounded. He said there is need for an agreement between the government and the Guyana Telephone and Telegraph Company (GT&T), which was fair to all the parties and provided a stable environment to launch the ICT project.
A bank mission is due next month to follow up on this issue and to determine when the project would go back to the IDB board.
The bank's approach to the ICT loan has been cautious ever since the Atlantic Tele Network (ATN), parent company of GT&T, sought to have the loan blocked in the US courts in 2002 even though this motion was dismissed earlier this year. ATN had indicated that it might appeal that decision but its chairman, Cornelius Prior, recently said the company would not move in this direction given that GT&T and the government were again in negotiations.
The government and GT&T/ATN re-entered negotiations last month and the company was to provide the government with a draft memorandum of understanding based on the agreed minutes on the round of negotiations held last year in Trinidad.
The talks had broken down when Prior lobbied the IDB against the US$18M loan and then went to court to block the loan on the grounds that it infringed on the company's monopoly rights.
The parties have agreed to resume discussions from Trinidad and Prime Minister Sam Hinds contacted for a comment on Friday said that he would not wish to say anything except that the two sides were still in discussions.
The ICT project would allow the government to modernise its operations and to allow the public easier access to information while simplifying procedures in government services. It is also aimed at creating wider access to the internet which could create new businesses.