–pace of global development requires strategic, value-based leadership, Dr. Ali says

PRESIDENT, Dr Irfaan Ali cautioned that Guyana’s economic stability could be jeopardised if the opposition’s unrealistic proposals were implemented. Speaking at the commissioning of the Vreed-en-Hoop Shore Base Inc. (VEHSI) on Saturday, the President addressed the ambitious electoral promises being made by the opposition.

One such promise from the People’s National Congress/Reform (PNC/R) is to introduce a $400,000 tax-free threshold, should they win the upcoming General and Regional Elections. With elections scheduled for this year, the opposition has been intensifying its campaign, offering promises that lack solid economic backing.

This approach has been widely criticised, particularly by economists, and has been rejected by various sectors of society. President Ali used the occasion to remind Guyanese of the opposition’s fiscal irresponsibility, making it clear that these unrealistic promises should not sway public opinion.

He said, “The world today is moving in a direction and at a pace that requires leadership that is bold, leadership that is exciting, leadership that generates ideas, leadership that is value-based and leadership that is responsible. It does not require spur-of-the-moment excitement that would allow someone to belch out a figure.”

According to the Head of State, this irresponsible proposal would take Guyana back to the “deadly” period in the country’s history, between the 1970 and 80s when the country’s debt sky- rocketed. He said that it was the debt incurred to carry recurrent expenditure, wages and salaries, not to expand the economy, create employment or generate wealth.

Owing to prudent management by the People’s Progressive Party/Civic (PPP/C) government, the total Public and Publicly Guaranteed (PPG) debt-to-GDP ratio has been reduced from 47.4 per cent at the end of 2020 to 24.3 per cent at the end of 2024.
Under the People’s National Congress (PNC), Guyana was characterised by a significant debt-service burden, when the country’s debt was once nine times the size of the economy and the country was using over 100 per cent of revenue to service debt. However, Guyana has since gained better footing and is no longer facing a crippling debt-servicing crisis.

DRIVING TRANSFORMATION
There has been a flurry of rhetoric by the opposition regarding the government’s prioritisation of infrastructure, especially in this year’s budget. President Ali has also responded to these comments.

The President firmly stated: “Development follows infrastructure.” With that said, he pointed to just two major infrastructural projects that will drive development all across Guyana.
First, he highlighted the significant relief and economic activities that the new Demerara River Bridge will drive. The new Demerara River Bridge, which is being constructed by China Railway Construction International Limited under the supervision of the Italian firm Politecnica, is set to become Guyana’s largest public infrastructural project. The US$260 million contract for the bridge was signed in May 2022.

Spanning approximately 2.65 kilometres with a driving surface width of around 23.6 metres, the bridge will feature two carriageways and four lanes. Its design includes a cable-stay structure for the high span, expected to have a vertical clearance of approximately 50 metres above the mean highest watermark.

Additionally, the bridge will incorporate cycling lanes and other amenities, ensuring a modern and efficient crossing for motorists and cyclists alike. He then pointed to the gas-to-energy project, which has been touted as a major milestone in the country’s development and will result in enormous financial savings and energy benefits to citizens once completed.
“It is going towards improving the competitiveness of our country. It is going to be an investment that will enable us to bring jobs in Guyana, to develop a first-world industrial, manufacturing, agro-processing sector in this country.”

The anticipated savings would stem from a major reduction in electricity rates with the price of electricity set to be reduced from $0.22 per kilowatt hour to $0.11 per kilowatt hour, halving the cost.

The pipeline installation for the project was completed in 2024 with the government expecting the integrated gas-processing facility to be completed by the fourth quarter of 2025, while partial start-up is planned for earlier in the year.

The President said the future for Region Three is exciting, especially with the infrastructure that will connect it to Regions Four and Seven.
For instance, he highlighted that the Sand Hill road alignment has already been laid out.

He then told the large gathering to “look at the impact of policymaking and the impact of investment and the impact of infrastructure, and how it translates into personal and community wealth.”