–in financing from IDB to support enhancement of East Bank Demerara Highway, healthcare sector advancement, national quality infrastructure

GUYANA, on Monday, signed three loan agreements with the Inter-American Development Bank (IDB) to access over US$220 million in financing for enhancements along the East Bank Demerara (EBD) Highway, strengthening of the healthcare sector and national quality infrastructure (NQI).

The agreements were signed in Trinidad and Tobago on the sidelines of the IDB Group’s XI Consultation of Caribbean Governors being held at the Hyatt Regency Hotel.
Senior Minister with responsibility for Finance, Dr. Ashni Singh signed the agreement on behalf of Guyana, while IDB President, Ilan Goldfajn, signed on behalf of the lending institution.

Making brief remarks at the signing, Goldfajn related the bank’s pleasure to be entering the agreements that will contribute to massive development in Guyana.

“These loans are in the areas that are priority areas. Guyana is growing and we are very lucky to be part of this growth,” Goldfajn said.

Dr. Singh, in his remarks, thanked the IDB for its strong support to Guyana’s development effort.

“The IDB has been a reliable and dependable development partner to Guyana over the long term. The strength of this partnership is evidenced not least in the three agreements we are going to be signing today, supporting critical investment in three areas that go to the core of Guyana’s government’s development agenda,” Dr. Singh said.

He added: “These are three extremely important operations and we want to thank the IDB for your support and we look forward to continued and strong support in the months and years ahead.”

The first individual loan contract is for financing under the “Health Care Network Strengthening” in Guyana, where the bank will finance up to US$160 million through the Conditional Credit Line Investment Project (CCLIP) and up to US$97 million in the first individual operation with resources from its ordinary capital.

The objective of this programme is to improve the health of the Guyanese population through increased access, quality and efficiency of health services.

This investment will support the expansion of the capacity of seven hospitals across coastland and interior communities, extend coverage of diagnostic exams and medical consultations, advance medical services, and increase access to a more efficient public health system.

This project is expected to benefit a significant portion of Guyana’s population including the Indigenous communities, with interventions in all 10 of the country’s regions.

“This investment is in the public healthcare system, in particular the rehabilitation and or expansion and or establishment of new hospitals in seven different areas including in remote areas in Guyana, and in particular the deploying Information, Communication and Technology (ICT) for telemedicine solutions which is an excellent innovation, will completely transform the healthcare enjoyed by the remote population in Guyana,” Dr. Singh related.

The second loan contract is for the “Programme to Support Climate Resilient Road Infrastructure Development”, which will advance Guyana’s safe, efficient and climate resilient road and associated infrastructure.

Regarding this loan, the bank will finance up to US$117 million with resources from its ordinary capital.

The programme’s specific objectives are to improve road service quality and utility service, along the East Bank Demerara corridor through road and corresponding utility infrastructure improvements.

The EBD corridor is extremely critical given increased economic activities and its connectivity to the Cheddi Jagan International Airport, the Soesdyke to Linden Highway and future development of Silica City, an initiative of President, Dr. Irfaan Ali.

“This is for transportation infrastructure which is absolutely critical. In particular, this project will support the rehabilitation of the East Bank Demerara Highway which is a major artery in Guyana. Given the rapid growth that is taking place in Guyana, it is a major roadways that is already severely congested,” Dr. Singh said.

The third loan contract is for the reformulation and additional financing to the programme entitled, “Enhancing the National Quality Infrastructure for Competitiveness.”

The objective of the additional financing is to support economic competitiveness, with a specific objective to support the adoption of quality standard among Guyanese micro, small and medium enterprises.

The bank will provide up to US$8 million through additional financing with resources from its ordinary capital.

A major investment that will be made under this loan is the establishment of a new and modern world class state-of-the-art laboratory to be operated by the Guyana National Bureau of Standard.

“That lab is an absolutely critical role in standards and certification which has taken on new and enhanced importance given the changes taking place in the Guyanese economy. It’s important for us to be compliant with international standards and certified with international standards in all areas that we operate,” Dr. Singh said.