–following signing of US$4M loan agreement between John Fernandes Limited, IDB-Invest for second mobile crane

A US$4 million corporate loan agreement was signed between the Inter-American Development Bank (IDB)-Invest and John Fernandes Limited (JFL) for the procurement of Guyana’s second mobile land line crane (MHC).

The signing of the agreement, which was observed by Senior Finance Minister, Dr Ashni Singh, allows for an increase in the quantity of international cargo handled at the port facilities operated by John Fernandes Limited.

The IDB noted that currently, all port operations in Guyana rely on crane vessels for loading and discharging containers, and that these are less efficient and have less cargo-handling capacity than an MHC.

So, with the incorporation of the MHC, JFL would be able to service gearless vessels that can carry a substantially greater amount of cargo and do so more efficiently, due to the MHC’s ability to load and discharge containers at a higher rate.

Dr Singh, during the virtual signing ceremony, expressed his appreciation to IDB-Invest for showing its commitment to investing in this private-sector project, which not only allows for development of port facilities generally in the country, but is also a sign that the financial institution is showing serious interest in quickly and aggressively assisting in Guyana’s development in more ways than one.

He recalled that it was the same institution that, in October, signed a similar loan agreement of the same cost with Muneshwers Limited for the procurement of Guyana’s first mobile crane.

Dr Singh commended both John Fernandes’ Chief Executive Officer (CEO) Mr Philip Fernandes and the IDB Group’s Country Representative (ag) Lorena Solorzano Salazar for the fast pace at which the agreement was finalised.

According to the IDB, the transaction will not only support increased cargo-handling capacity from the current 33,000 20-foot equivalent unit (“TEUs”) containers per year to 100,000 TEUs, but it will also improve the port infrastructure in Guyana and contribute to timely and efficient handling of rising international commerce in the country.

IDB-Invest is the private-sector arm of the IDB. Its aim is to advance economic development and improve lives by encouraging the growth of the private sector. It offers an array of investment opportunities and provides its clients with customised financing solutions and expert advice, tailored to their specific industry and market.

Last month, during his year-end inspection of GRA’s operations at wharves, Minister Singh highlighted that clearance of consignments would further be improved with the addition of two mobile cranes to be operated by John Fernandes Limited and Muneshwers.

“These pieces of equipment will form part of the further modernization of operations at the wharves,” Dr Singh had said then.

It was only on Monday evening that Dr Singh completed his budget presentation of the country’s largest budget, $781.9 billion, to advance the transformation of Guyana’s economy.

The signing, according to the Ministry of Finance, is indicative of the government’s aggressive efforts to transform, develop and implement its programmes and projects.

The ministry said it also demonstrates the government’s commitment to partnering with the private sector (considered the engine of growth) whenever necessary, to move the country’s economy forward and transform its landscape.