–as Guyana, IDB Group sign six key agreements

WITH Guyana on the cusp of a new era that assures unprecedented development, the Inter-American Development Bank Group (IDB Group) is playing an integral role in supporting key advancements in the education and energy sectors, along with providing support to the private and tourism sectors.

Guyana and the IDB Group, on Saturday, signed six crucial agreements on the sidelines of the XII Annual Consultation with Caribbean Governors of the IDB, which was held in Guyana at the Marriott in Georgetown.

Those agreements include two operations with the Government of Guyana that focus on enhancing the country’s education sector and an amendment to a current operation to strengthen Guyana’s energy matrix diversification and reliability.
Additionally, IDB Invest, the private sector arm of the IDB Group, signed three operations with companies in Guyana for financing in the logistics sector, tertiary education and sustainable tourism.

Notably, Guyana’s Senior Minister in the Office of the President with responsibility for Finance and Public Service, Dr. Ashni Singh, and IDB President Ilan Goldfajn signed IDB education and energy agreements, and were also joined by IDB Invest Chief Executive Officer, James Scriven, in the signing of agreements with representatives of Texila American University Guyana, Republic Bank, Muneshwers Limited, Guyana Bank for Trade and Industry and Caribbean Green Building.

“Today’s signings are an important step in our continued collaboration with the government to improve the lives of the Guyanese people. We are confident that these projects will make a difference in improving education conditions, increasing energy reliability and financing sustainable tourism, tertiary education and logistic sectors,” said IDB President Goldfajn.

TRANSFORMING THE EDUCATION AND ENERGY SECTORS
As the current government works assiduously towards delivering quality education, close to 9,000 primary school learners and their communities will benefit from a Conditional Credit Line for Investment Projects (CCLIP).

According to the IDB release, the CCLIP enables Guyana to access up to US$150 million of which the first operation is for US$90 million.
According to the IDB, with this investment, over 2,600 pupils are expected to benefit from the construction of six new primary schools.

Also, more than 6,000 pupils in 19 primary schools in the hinterland regions will see their schools rehabilitated.
Additionally, 7,000 learners and 300 teachers from grades two to six in the selected schools will receive digital devices to improve teaching and learning experiences.

With the aim of contributing to quality education in order to foster sustainable development, an investment grant of US$5 million, according to the IDB, will strengthen instructional leadership at the district and school levels, with financing from the Global Partnership of Education (GPE).

This operation will supplement educational support by boosting leadership capabilities among 200 education leaders, spanning district and school leadership, ministry officials, and subject specialists.
Moreover, the signings also included the amendment to strengthen the energy matrix diversification for US$26.9 million, which will benefit more than 200,000 people. This averages about 90 per cent of the Guyana Power and Light Incorporated (GPL) customer base on the Demerara-Berbice Interconnected System (DBIS).

The modification uses approximately 63 per cent of the funds to focus on reliability of electricity supply by replacing and upgrading two existing 12-kilometer 69kv transmission lines, and installation of capacitor banks to reinforce four power substations over the next three years.

PRIVATE SECTOR SUPPORT
With the goal of contributing to the United Nations Sustainable Development Goal (SDG): Industry, Innovation and Infrastructure (SDG 9), IDB Invest partnered with the Guyana Bank for Trade Industry and Commerce (GBTI) to finance US$14 million for Muneshwers Limited to purchase two new gantry cranes for multipurpose cargo activities and to build a logistics warehouse.

According to the release, the cranes will be installed at Port Georgetown and will allow Muneshwers to double its cargo handling capacity by 2025, from the current 30,000 twenty-foot equivalent unit containers per year.

This operation includes a senior loan of US$10 million from IDB Invest and US$4 million from GBTI. It is Muneshwers’ second facility with IDB Invest, which provided a US$4 million loan in 2022 for the company to acquire its first mobile harbour crane.

It was said that IDB Invest’s participation in this project will mobilise the private sector to develop infrastructure projects in Guyana that can be replicated in other Caribbean countries.

Moreover, with the expectation to increase student enrolment by almost 73 per cent and by 2026 increase the number of students graduating by 20 per cent, IDB Invest also partnered with Republic Bank (Guyana) Limited to help Texila American University enhance services in Guyana by expanding its accommodation facilities for staff and students.

This is IDB Invest’s first private-sector education project in the Caribbean.
Total financing of US$9 million includes a senior loan of US$5 million from IDB Invest and US$4 million from Republic Bank.

SUSTAINABLE TOURISM
IDB Invest and Caribbean Green Building collaborated to loan US$22 million in finance for the development of a sustainable mixed-use tourism project in Georgetown, Guyana. The project includes a 172-room Four Points by Sheraton Hotel, a conference facility, and retail centre.

The project will be the first EDGE advanced-certified hotel in Guyana and is expected to contribute to the economic development of the country by generating tourism revenue, creating more than 150 jobs during construction and over 60 jobs during operations, and strengthening the local value chain.

Located in the South Ruimveldt Gardens district, Four Points Georgetown will source up to 40 per cent of food and beverage goods domestically and decor and fixtures will be sourced in part through a close collaboration with the local Arawak indigenous community.

Four Points by Sheraton Georgetown is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): Affordable and Clean Energy (SDG 7), Decent Work and Economic Growth (SDG 8), Reduced Inequalities (SDG 10), Responsible Consumption and Production (SDG 12) and Partnerships for the Goals (SDG 17).