President Jagdeo reports on Middle East visit…
— Kuwait offers US$10M in project aid
IRAN has agreed to deploy its world class geo-scientific techniques to help Guyana accurately map its mineral wealth deposits and a mission is due here soon to begin working with the Guyana Geology and Mines Commission, President Bharrat Jagdeo announced yesterday.

This, he said, was a major outcome of his most recent visit to the Middle East where Guyana is seeking more development support outside of traditional Western avenues.

Mr. Jagdeo told reporters at the Office of the President in Georgetown that Kuwait has also agreed to provide up to US$10M for an infrastructure project here and this most likely will be used to develop 10,000 more house lots for low income groups.

Kuwaiti assistance will come through the Kuwait Fund after Guyana submits a proposal based on a feasibility study.

The President, who returned home over the weekend from a visit that also took in the United Arab Emirates, said he yesterday briefed Cabinet on the offer and Guyana will be moving to access the funds.

Iran, in addition, will provide Guyana with a US$1.5M grant for the health sector, he reported.

The agreements with Iran emerged from meetings with that country’s Supreme Leader Ayatollah Ali Khamenei and President Mahmoud Ahmadinejad.

Mr. Jagdeo noted that because Iran is in a very active earthquake region, it has developed world class geo sciences labs and uses the same science employed to predict earthquakes to map mineral potential and resources.

Guyana has long lacked this capability and because of the absence of data on its mineral resources, it has relied on investors to seek prospecting licences and then develop a project in a “hit and miss way”, he said.

The Iran offer opens new vistas and the President said GGMC Head, Mr. William Woolford is excited about the prospects.

He said the Iranian mission due here soon will work with the GGMC to advance this project which will result in a much more planned development of the mining sector with greater benefits to the country.

Mr. Jagdeo hailed this as a major achievement of his Iran mission.

He said the health grant from Iran can also see a significant boost for Guyana’s health sector which needs more specialist doctors.

Iran, he said, has significant capacity in health care provision and Guyana is seeking its help to provide teachers for a proposed medical specialist training institution here.

The training of enough specialists here will bolster the some 750 students who have just completed or are continuing studies in medicine in universities abroad, he said.

After training, these doctors will provide an adequate pool of General Medical Practitioners (GMOs) for all the state hospitals in the country and the Iranian support can help fill the gap of specialists in all fields, he said.

The talks in Iran also covered the possible supply of agricultural implements, the President said, noting that Iran is producing Massey Ferguson tractors in Venezuela at very competitive rates.

“…we are hoping we may be able to work out an arrangement where we would receive some of those tractors”, he said.

The President said extensive discussions in Kuwait also covered strengthening relations between the private sector of the two countries.

He said talks with the Emir and some of his officials were on a debt Guyana contracted with Kuwait since 1975 and which has grown to more than US$50M.

He said that based on Guyana’s commitments through Paris Club minutes, it is required to seek comparable treatment from other non-Paris Club creditors, which means seeking at a minimum, 85 per cent reduction on the net present value of the debt.

But Kuwait has argued that it has some complications with extending that treatment and discussions over the years have been bogged down because of the differences in these positions, Mr. Jagdeo reported.

He said the two countries have agreed to continue these discussions later this year, possibly at the annual meeting of the International Monetary Fund and the World Bank in Washington in September.

“This is a major issue for Guyana as we move towards clearing up the debts of the past. Already our debt profile is a very sustainable one but we need to remove the last vestiges of the old debt so that we can continue to build a viable debt strategy in the future”, he said.

The President last year visited the Middle East and has argued that Guyana’s economic diplomacy will move from an emphasis only on North America and Europe to one that emphasizes Brazil, China, India, and other new emerging markets and the Middle East which is a large exporter of capital.

Guyana will be beefing up its diplomatic and economic relations facilities in the Middle East, he added.