The Inter-American Development Bank Group (IDB Group) Guyana inked six loan agreements today.
Three were signed with the Government of Guyana which encompasses a range of initiatives aimed at enhancing education quality and infrastructure, diversifying and bolstering the energy matrix. 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 occurred during the IDB Group’s XII Annual Consultation with Caribbean Governors of the IDB hosted at the Guyana Marriott Hotel, in Georgetown.
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.
President Goldfajn expressed optimism about the impact of the projects, stating, “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.”
Guyana’s education and energy sectors are poised for significant improvements following the signing of key agreements between the IDB Group and Guyana.
Under the education initiatives, approximately 9,000 primary school students and their communities are slated to benefit from a Conditional Credit Line for Investment Projects (CCLIP). This endeavor, with a total allocation of up to US$150 million, will kick off with an initial disbursement of US$90 million. The investment aims to construct six new primary schools and rehabilitate 19 existing ones in the Hinterland regions, positively impacting over 2,600 students and 6,000 students, respectively. 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.
In another initiative, an investment grant totaling US$5 million, secured from the Global Partnership of Education (GPE), will fortify instructional leadership at the district and school levels. This initiative aims to enhance the capabilities of 200 education leaders, spanning district and school leadership, Ministry officials, and subject specialists, contributing to improved education quality and equitable participation for sustainable development.
Meanwhile, the energy sector stands to benefit from an amendment aimed at strengthening the diversification and reliability of Guyana’s energy matrix. Valued at US$26.9 million, this amendment is projected to benefit more than 200,000 people, constituting approximately 90% of the Guyana Power and Light Inc. customer base on the Demerara-Berbice Interconnected System (DBIS).
Notably, around 63% of the allocated funds will be directed towards enhancing the reliability of electricity supply. This will be achieved through the replacement and upgrade of two existing 12-kilometer 69kv transmission lines and the installation of capacitor banks to reinforce four power substations over the next three years.
Moreover, as it relates to the private sector, the IDB Invest, the private sector arm of the IDB Group, entered into partnerships with key Guyanese companies to bolster the logistics, education, and tourism sectors.
A notable collaboration involved a US$14 million financing agreement with Muneshwers Limited, facilitated by the Guyana Bank for Trade Industry and Commerce (GBTI). This investment will enable Muneshwers to double its cargo handling capacity by 2025 through the acquisition of two new gantry cranes and the construction of a logistics warehouse.
In the education sector, IDB Invest partnered with Republic Bank (Guyana) Limited to finance Texila American University’s expansion, aiming to enhance accommodation facilities for staff and students. This project, totaling US$9 million, is anticipated to significantly increase student enrollment and graduation rates by 2026.
Furthermore, IDB Invest collaborated with Caribbean Green Building to provide US$22 million in financing for a sustainable mixed-use tourism project in Georgetown. The project, featuring a 172-room Four Points by Sheraton Hotel, aims to stimulate economic development by generating tourism revenue and creating job opportunities.
