GUYANA on Wednesday signed a US$20M loan agreement with the Islamic Development Bank in Kuwait to help in a major upgrade of the Guyana Power and Light Inc.

Minister of Finance Winston Jordan said he was pleased to sign the loan agreement on behalf of the Government of the Cooperative Republic of Guyana. Jordan said the ceremony marked the celebration of the first loan to be granted by the bank to Guyana and in the process cementing “our growing relationship and the proactive use of the indicative resource envelope for Guyana.” He said the United Nations 2030 Agenda espouses aspirations for human dignity, noting that undoubtedly, the objective is “to leave no one behind.” “This laudable objective is in keeping with principles of the Islamic Development Bank. It is also the cornerstone of my government’s approach to development. This is perhaps, why we have been able to establish such a close working relationship, in such a short period,” Jordan told the assembled guests.

He said the US$20million loan will support Guyana’s Power Utility Upgrade Programme, which is a component of the Guyana Power and Light development and expansion programme for 2014 to 2021. The plan incorporates necessary reforms and upgrades to reduce losses and improve the quality and reliability of electricity supply and will, at the same time, help to transform Guyana’s infrastructural landscape, boost our manufacturing sector and improve the quality of life of our citizens.

Jordan said the loan could not have come at a more opportune time, especially since Guyana is on the cusp of an historic transformation with the recent discovery of over four billion barrels of oil. Jordan related that the International Monetary Fund (IMF) has deemed Guyana’s medium-term economic prospects as “very favourable” and predicts that the country’s Gross Domestic Product (GDP) will grow by 29.1 percent in 2020 — our first year of production.

At the same time, he said the IMF has commended Guyana on its “prudence and restraint towards borrowing in anticipation of future oil revenues.” As such, “our public debt stood at a highly sustainable 52.2 percent of GDP at the end of 2017.” He said Guyana looks forward to working with the IsDB on projects in several sectors, including agriculture.

Guyana is a major producer of rice in South America, exporting some US$200 million worth in 2017. “In this regard, I wish to express gratitude to the bank for the Reverse-Linkage Project, which will assist in updating Guyana’s expertise and technology in rice production, as well as introduce innovative rice varieties in Guyana. We are also thankful for the Grant for the Modernisation and Upgrade of The Palms geriatric facility. This support will result in better care for the elderly.”

Over the next few days, Jordan said he and his team which includes Minister of Public Infrastructure, David Patterson, will be involved in activities that will bring a greater and deeper appreciation for the principles and practices of Islamic banking. “We are looking forward to this new knowledge, as we strive to deepen and widen our engagement.
We are a little country, but our focus is strong, and our potential is enormous. Rest assured of our unwavering commitment to being reliable development partners in our pursuit to realising the development of our country.”