The Inter- American Development Bank signed six new loan agreements with Guyana’s government and private sector on Saturday.
These loans aim to support the construction of new schools, help Guyana provide more reliable electricity and enable private sector expansion.
IDB President Ilan Goldfajn, who spoke at opening ceremony of the XII Annual Consultation with Caribbean Governors of the IDB on Saturday, acknowledged that Guyana is among the world’s fastest growing economies.
And he said the Bank has positioned itself as a key strategic partner for the country.
Guyana’s Finance Minister, Dr. Ashni Singh said the IDB is indeed an important financing partner for the government and IDB Invest, the body focused on private sector development, is similarly helpful to Guyana’s private sector.
See below the full release from the Inter-American Development Bank (IDB):
The Inter-American Development Bank Group (IDB Group) today signed six new agreements with Guyana, including two operations with the government of Guyana that focus on improving the country’s education sector by enhancing education quality and infrastructure 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.
The signings took place during the IDB Group’s XII Annual Consultation with Caribbean Governors of the IDB in Guyana. 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 signings 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 President Goldfajn.
Education and Energy
In education, close to 9,000 primary school students and their communities will benefit from a Conditional Credit Line for Investment Projects (CCLIP) for transforming Guyana’s education sector and the first individual operation for support for educational recovery and transformation. The CCLIP enables Guyana to access up to US$150 million of which the first operation is for US$90 million.
With this investment, over 2,600 students are expected to benefit from the construction of six new primary schools and more than 6000 students in 19 primary schools in the Hinterland regions will see their schools rehabilitated. Additionally, 7,000 students and 300 teachers from grades 2 to 6 in the selected schools will receive digital devices to enhance teaching and learning experiences.
An investment grant for a total of US$5 million will strengthen instructional leadership at the district and school levels, with financing from the Global Partnership of Education (GPE). It will complement the educational support by enhancing leadership capabilities among 200 education leaders, spanning district and school leadership, Ministry officials, and subject specialists. The operation aims to contribute to improved quality, equitable participation, and achievement in basic education for the sustainable development of Guyana.
Additionally, the signings also included the amendment to strengthen the energy matrix diversification for US$26.9 million. It will benefit more than 200,000 people, which averages about 90%of the Guyana Power and Light Inc. customer base on the Demerara-Berbice Interconnected System (DBIS). The modification uses approximately 63% 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
In the private sector, 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. The cranes will be installed at Port Georgetown and will enable 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 harbor crane.
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. This investment is expected to increase student enrolment by almost 73% and by 2026 increase the number of students graduating by 20%.
Sustainable Tourism
Additionally, IDB Invest partnered with Caribbean Green Building to provide US$22 million in financing to develop a sustainable mixed-use tourism project consisting of a 172-room Four Points by Sheraton Hotel, a conference facility and retail in Georgetown, Guyana. 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% of food and beverage goods domestically. Additionally, decor and fixtures will be sourced in part through a close collaboration with the local Arawak indigenous community.
