–among major private projects in the pipeline to support construction boom

ENCOURAGING development offshore Guyana and in other key productive sectors have spurred investors to inject funds into projects that are expected to fuel and support an imminent construction boom across the country. At the centre of economic development is infrastructural advancement, which facilitates progress, expansion and innovation in key productive sectors.
According to experts, infrastructure, like the foundation of a house, serves as the root of an economy, expanding the scope for transportation, construction and investments, among other things. This year alone, the government plans to expend $58.2 billion on public infrastructure, which is the second largest component of the government’s fiscal programme. And on the capital side, the budget for infrastructure is $32.9 billion or 32 per cent of the total allocation for 2021.
Outside of the public sector, there are plans to construct hotels, agro-processing facilities, and shore bases to service the burgeoning oil and gas sector, and other facilities.
Further, 25 projects were initiated within the past year, of which 16 are local, six are Foreign Direct Investments (FDI), and three are joint ventures.

Based on a breakdown of the local investments, four were in the agriculture sector; six in the service sector; two in light manufacturing, and one each in Information and Communication Technology (ICT), tourism, forestry and energy. Of the six FDI projects, three are service related; two are in manufacturing, and one in agriculture. The joint ventures account for two in manufacturing and one agriculture-related project. Ultimately, for those projects to reach a stage of productivity, critical infrastructure needs to be in place.
Cognisant of this, investors have been positioning themselves to capitalise on the increasing demand for construction materials.
“The interest in supporting investments to boost the construction boom is on the rise,” Chief Executive Officer (CEO) of the Guyana Officer for Investment (Go-Invest), Dr. Peter Ramsaroop said in an invited comment. Dr. Ramsaroop said several investors have indicated their interests to establish steel and marine fabrication plants, large scale block-making factories and large cement batching plants.

“Applications to establish such businesses have been topping the list over the last month,” the CEO related.
The announcement of plans for such investments follows a recent report from the Department of Public Information (DPI), which quoted Senior Minister in the Office of the President with responsibility for Finance, Dr. Ashni Singh, as saying: “There is going to be a tremendous construction boom in Guyana, not just as a result of public sector activity – the buildings, the roads, the bridges, et cetera, the government is building – but also on the private sector side.
“You know we will have multiple hotels that are going to start constructing now. You are going to have people taking up their house lots and starting to build their homes.”
Dr. Singh said the government has been encouraging the private sector to explore alternative sources of supply for construction materials like steel and cement.

The need for such investments is even greater because Guyana, despite the lingering adversities, is set to record economic growth of 20.9 per cent at the end of 2021, 26.0 per cent in 2022 and 23.0 per cent in 2023.
And the country’s Gross Domestic Product (GDP) of about $6.8 billion is expected to more than double by 2025, reaching over $14 billion.
In light of this, President, Dr. Irfaan Ali, had said that the right infrastructure is needed to accompany development and catalyse transformation.
Early this year, the President said: “We need to have the right infrastructure. We have to build and modernise and do what is necessary for growth and development, but there cannot be an overreach and over spending… critical infrastructural links have to and will be created.”
Already, the government is building roads and bridges, and enhancing existing infrastructure which will serve as arteries to development.