Happy Monday!

This week, we cover the President’s address for the year’s budget and the government’s plans for the future. We also address a large embezzlement scheme at one of Suriname’s major milk companies and Suriname’s movement into the oil and gas sector to stimulate the economy.

President Simons’ address for the year’s budget emphasized restoring trust, order, and perspective. She also addressed nation-building, maintaining public finances without increasing taxes, and reforming the rule of law, healthcare, education, the economy, and infrastructure.

In Governance & Rule of Law:

• Weakened institutions, over 380 inherited commissions

• Budget shifted from surplus to 7.8% deficit post-IMF program

• Focus on cost-cutting, better tax collection (no tax hikes), anti-corruption, judicial, and electoral reforms

The focus on Healthcare will be:

• Emphasis on prevention, primary care, and digital health solutions

• Reform of the State Health Fund (SZF) and the medicine supply system (BGVS)

• Prioritize mental health, maternal/child care, and regional hospitals

• In Education, the focus will be on :

  • Improved school meals, vocational training linked to the labor market, and teacher development

• The focus on the Economy will encompass:

  • Diversifying with a focus on agriculture, tourism, and construction

  • Local content policies in oil & gas, regional training hubs

  • Push for domestic bauxite processing (no raw exports)

  • Prioritize gas-to-shore for energy and industry development

• Aviation & Connectivity:

  • Aviation safety upgrades with IDB support

  • New Civil Aviation Law by the end of 2026

  • Open skies policy and improved regional transport connectivity

• Digitalization & Transparency:

  • Real-time portals for public finances, whistleblower protections

  • Broad digital transformation focused on inclusion and cybersecurity

• Infrastructure, Water & Energy:

  • Upgrade East-West highway and agricultural roads with PPPs

  • Expand water company (SWM) services, reduce losses

  • Rationalize water tariffs with targeted subsidies

  • Enhance energy security and modernize environmental governance

  • Maintain carbon credits as a long-term strategy

GranMorgu’s oil project has led to the largest financing project in Suriname’s history for the national oil company.

• GranMorgu oil project in Block 58, led by TotalEnergies, will begin production in 2028, reaching 220,000 barrels/day, with 760 million barrels in reserves and $10+ billion in investment.

• The project could triple Suriname’s GDP and provide funding for infrastructure, healthcare, and education.

• Staatsolie secured a $1.6 billion syndicated loan in May 2025 for its 20% stake—the largest project financing in Suriname’s history, winning LatinFinance’s "Loan of the Year".

• The loan involved 18 international and regional lenders (e.g., Deutsche Bank, Afreximbank, Bladex) and includes risk-hedging mechanisms.

• The project will use a fully electric FPSO, with no routine flaring and capacity for expansion, setting a new standard for sustainable oil production.

• Expected to create 6,000+ jobs, enhance regional energy security, and support Staatsolie’s ambition to become a future offshore operator.

MelkCentrale, Suriname’s major milk company, has been dealing with a massive embezzlement case of around SRD 17.1 million.

• 8 suspects arrested, including a deputy director, in a large-scale embezzlement case at Melkcentrale N.V.

• Over 4,000 bags of milk powder were stolen, valued at approximately SRD 17.1 million.

• The case began after an embezzlement report was filed on August 29; initial questioning led to no arrests.

• On October 3, new testimony led to the arrest of eight individuals (six men, two women).

• Seven suspects were remanded in custody; one was released after questioning.

• A ninth suspect was arrested later; the investigation is ongoing to determine the full scope and involvement of others.