–with milestone signing of agreement between Guyana, US EXIM Bank

PRESIDENT, Dr Irfaan Ali has said that the US$2 billion agreement between Guyana and the US EXIM Bank is a clear indication of the North American nation’s commitment not only to Guyana, but also to the Caribbean Community (CARICOM).

The Head of State made those remarks following the signing of the historic agreement between the Government of Guyana and the Export-Import (EXIM) Bank of the United States in Washington, on Wednesday.

The agreement represents an important milestone in US-Guyana relations since it lays the foundation for Guyana to access EXIM financing and facilities for the first time, and provides for interventions on a scale that is likely to have a lasting developmental impact.

Under the agreement, the parties agreed to explore options for utilising EXIM’s standard instruments, which include direct loans and medium and long-term guarantees, to finance US exports to Guyana for government projects, totalling US$2 billion.

“In this development phase of our country, we want to see greater US participation not only from the government, but [also] from the private sector. One of the inhibitive factors has always been the ease of access to financing and the barriers to financing.

“This, today, is the single most important signature not only for Guyana, but for the region [as well], the United States, through one of its agencies. EXIM Bank is serious about its commitment to the CARICOM region,” President Ali said.

The agreement, he added, should also signal an open invitation to the private sector and the leadership of both countries to now move aggressively forward on a platform that is supported by the Government of Guyana and EXIM Bank.

The Head of State was optimistic that full use will be made of this opportunity and that there is a deeper understanding on both sides of the level of seriousness that is attached to the relationship.

This commitment, the President added: “Has now been cemented in the MoU [Memorandum of Understanding] that not only outlines areas, but sets an initial figure of US$2 billion to be allocated to the development projects and work in Guyana.

“I think we can applaud ourselves and EXIM Bank for this dynamic, futuristic, and bold move in advancing this relationship and this cause, and the areas we have identified shows [sic] the broad and multifaceted nature of the leadership of EXIM Bank.”

The MoU also identifies a number of indicative sectors in which projects may be identified. These include, but are not limited to: infrastructure (including roads and bridges); energy (including renewable energy and emission reduction); telecommunications (including wireless technologies); water treatment and sanitation (including technologies and infrastructure); and agriculture.

“This is what we’re talking about, not a simple MoU, but an MoU that has the potential of unlocking all of this. The focus on energy, renewable energy, that allows us to advance on the path of goals and targets we set at COP26 and beyond. It shows our commitment on cleaner energy, advancing sustainable and resilient development,” Dr. Ali said.

The Head of State committed to working “aggressively” and “proactively” in pursuit of the full realisation of the MoU, while ensuring that all parties emerge as “winners.”

Dr Ali also invited the bank’s hierarchy, including its President and Chair, Reta Jo Lewis, to visit Guyana with the US private sector to meet with the government and the local private sector in Guyana to solidify the projects.