With more international financial institutions injecting capital into major projects across Guyana, their confidence in the Guyanese economy should not be taken lightly.
This is according to Attorney General (AG) and Legal Affairs Minister, Anil Nandlall, during his programme – Issues in the News – last week.
Currently, financing giants such as the United States Export-Import (EXIM) Bank, the United Kingdom’s Export Finance (UKEF), the Export-Import Bank of India, the Germany-based Deutsche Bank and the African Export-Import Bank (Afreximbank) are among a host of global agencies that are funding major projects and programmes across the country.
“These signals are not coincidental and they should not be interpreted lightly,” AG Nandlall recently stated.
According to the Legal Affairs Minister, this was not the situation decades ago when the Guyanese economy was on the brink of bankruptcy, or even later on during its recovery from a near economic collapse.
“These are signals [today] from huge financial giants that they have confidence in Guyana, that they have confidence in the Government of Guyana, that they have confidence in investing in Guyana, that they feel that their investments and their financing of investments in Guyana are safe, that they feel that the projects that they are financing are feasible and viable projects.”
“And these projects, mind you, are not only in the private sector, but largely are Government projects: hydropower plants, Gas-to-Shore plants, highways, deepwater harbours, airports and airport facilities, dredging of rivers, investments in the security sector, [and] now investment in the housing sector. All these areas have been the beneficiary of funding from these banks,” the AG noted.
His remarks come on the heels of United States (US) Ambassador to Guyana, Nicole Theriot’s recent announcement that two American companies will be undertaking a massive housing project in Guyana, building out some 10,000 homes here.
During a recent appearance on the Energy Perspective podcast, Ambassador Theriot disclosed that the project will be executed under the Guyana Government’s affordable housing programme with funding from the US EXIM Bank.
According to AG Nandlall, this financial banking of the US EXIM Bank is a demonstration of the growing international confidence in the local economy.
“That, I believe, is an amazing expression of confidence in our country. Because foreign companies don’t normally come in and invest in areas such as housing. That is normally left for the local private sector to invest in. But here we have two US companies…are prepared to invest in Guyana,” the Minister declared.
The EXIM Bank is the official export credit agency of the US. Back in July 2022, Guyana and the EXIM Bank had signed a Memorandum of Understanding (MoU) for financing of up to US$2 billion for projects in several sectors, including infrastructure, energy, telecommunications, water treatment and sanitation, and agriculture.
Already, the US financial institution has injected some US$527 million of that amount into the transformative Gas-to-Energy (GtE) Project, which is being executed by Houston-based contractor, Lindsayca Inc.
Earlier this year, the US EXIM Bank had also signaled its interest in backing the development of a deepwater port facility in Guyana.
Moreover, just last month, President Dr Irfaan Ali met with the bank’s President and Chairman, John Jovanovic, in New York to advance solutions for new and existing transformative projects in Guyana.
During their discussions, the Bank reaffirmed its commitment to supporting Guyana’s energy sector and other key development projects. In fact, it was reported following the meeting that the EXIM Bank is keen on extending its support beyond the first phase of the GtE Project to initiatives such as the GtE Phase Two.