To advance its multifaceted development agenda aimed at transforming the nation and enhancing the quality of life for all Guyanese citizens, the Government of Guyana has presented five new external loan agreements to the National Assembly, with the objective of financing a series of developmental initiatives. These agreements not only support new projects but also enhance funding for ongoing initiatives under the administration’s ambit.
Senior Minister in the Office of the President with Responsibility for Finance and the Public Service, Dr Ashni Singh presented these agreements today, highlighting the government’s commitment to maintaining transparent, accountable, and prudent debt management. The loan agreements are expected to play a crucial role in advancing Guyana’s development across various sectors including education, energy, and transportation.
On February 23, 2024, the Government of Guyana established a Conditional Credit Line for Investment Projects (CCLIP) with the Inter-American Development Bank (IDB), totaling US$150 million. The primary focus of this CCLIP is the transformation of Guyana’s education sector. The first loan processed under this agreement amounts to US$90 million, aimed at financing the Support for Educational Recovery and Transformation Program.
The overarching goals of this initiative are to develop the human capital essential for driving economic growth and diversification, as outlined in Guyana’s National Development Plan. The program is designed to expand and improve access to safe and enhanced learning environments in selected schools, and to provide better educational services for vulnerable students. Specifically, the investment will upgrade nineteen existing primary schools and construct six new ones. It will also integrate digital technologies to improve the learning environment, benefiting over 8,000 primary students and their communities. Additionally, the construction of the new schools will create 2,610 new primary education spaces, and at least 7,341 students along with 352 teachers from Grades 2 to 6 will receive digital devices.
To achieve these objectives, the government will implement improved physical and digital learning spaces and enhance services for vulnerable and Special Educational Needs and Disabilities (SEND) students. This comprehensive approach ensures that the education system is not only modernized but also inclusive.
In a parallel effort to bolster the energy sector, the government signed an amendatory loan agreement with the IDB on February 23, 2024, revising an original loan from February 11, 2019. The revised US$26.9 million agreement focuses on the Energy Matrix Diversification and Institutional Strengthening of the Department of Energy (ESMIDE) Program. This initiative is aimed at supporting Guyana’s evolving energy sector through sustainable and reliable energy solutions, contributing to climate change mitigation.
The program’s specific objectives include investing in sustainable energy solutions to diversify the energy matrix in the Hinterland, reinforcing transmission infrastructure to improve the reliability and stability of the Demerara Berbice Interconnected System, and strengthening the regulatory framework and institutional capacity of the oil and gas sector. These amendments also include renaming the program to “Strengthening the Energy Matrix Diversification” and reallocating financing amounts for various components, along with enhancing local counterpart financing by US$5.8 million.
In alignment with its commitment to combating climate change, the Guyanese government signed a Dollar Credit Line Agreement with the Export-Import (EXIM) Bank of India on February 29, 2024, for US$2.5 million. This agreement will finance the installation of a Solar Photo Voltaic Power Plant at the Cheddi Jagan International Airport, marking a significant step towards transitioning from fossil fuels to renewable energy and minimizing carbon emissions.
Furthermore, on March 15, 2024, another Dollar Credit Line Agreement was signed with the EXIM Bank of India for US$23 million. This loan is intended to finance the procurement of two Hindustan 228-201 aircrafts from Hindustan Aeronautics Ltd. This acquisition is part of the government’s ongoing efforts to enhance the capabilities of the Guyana Defence Force (GDF), particularly its Air Corps and Coast Guard. The purchase follows President Ali’s visit to India’s state-owned aerospace and defense company in January 2023 and represents the largest investment in the capitalisation of the force to date.
The PPP/C Government has been keen to it plans to maintain a track record of transparent and prudent debt management while ensuring that the financing secured today supports sustainable and broad-based growth.
