A delegation from the European Investment Bank (EIB) on Friday said that after a two-day visit and meetings with government officials and the private sector it is optimistic that loan agreements for infrastructural projects can be reached as early as next year.
While not brokering any agreements or making any commitments, the bank team seemed interested in assisting with the building of Guyana’s first deep water harbour after visiting the port of Georgetown.
“Business climate in this country is welcoming…We discussed possible investments in the energy sector and the harbour. The rehabilitation of the harbour is part of a bigger investment programme to the links and improved links to Brazil. If we start with the harbour, I think that would be a good thing,” EIB’s Vice President, Pim van Ballenkom said at a press briefing held at the Marriott Hotel.
“All in all, it looks very promising, in the near future and I am sure that I will be back in the country in the start of next year to sign the first operations between the EIB and either the private sector in Guyana or the public sector,” he added.
The EIB’s Vice President said that after a ten-year hiatus of operational engagements here, the bank reached out to the David Granger-led administration to explore opportunities for financing for new projects and the two sides prepared for the visit.
However, the investment delegation seems keen on starting with a deep water harbour project first as the benefits for both infrastructural development of the country and economic stimuli are direct spinoffs.
“I think rehabilitation of the harbour is good for several reasons. To establish better links to Brazil, to get access for bigger container ships into the harbour, we met a few people who are investing in the port of Georgetown and it is going to be good for the economy anyhow,” van Ballenkom posited.
Further, he reasoned, “Without the harbour, investing in the (road) link to Brazil is not economically viable so you have to start somewhere and I think the harbour is such that it is anyhow needed due to the fact that Georgetown can receive bigger vessels for containers and I think that makes sense even without investing in the link.”
The private sector was not left out as van Ballenkom underscored the importance of simultaneous private sector growth and pointed out that his team was impressed with not only the coordination of views between ministers but also the private sector’s involvement.
“It is good to get private sector investors on board. We discussed also possibilities with the President, with the Prime Minister, with the Minister of Public Infrastructure and of course the Minister of Finance…the treasury is the key department for our operations. The government was well prepared as well because each minister highlighted similar projects…,” he asserted.
“If we want to re-engage in the country we want people that are focused…we need focus because our operations in Guyana will be modest. It is good to know that the government is highlighting all the projects in the same direction…we met with people from the commercial sector, investors in private sector…so we are probably heading for some direct investments in specific industries,” he added.
Meanwhile, a release from the EIB quotes President David Granger as saying how enthused he was about the possibility of accessing loans from the bank to promote his administration’s green initiative.
“The government in Guyana is happy to re-engage with the European Investment Bank largely because the agenda for Guyana’s development over the next four years requires significant investment from foreign sources, particularly in the areas of developing the green agenda, improving infrastructure, particularly through … developing small and micro enterprises. These are major areas in which we had discussions and we are very confident that the European Investment Bank is going to be an important vehicle to provide credit to enable the developments to take place”, he said.
European Union Ambassador to Guyana, Jernej Videtic also said that he was delighted to have the group here as it is an opportune time for the country to diversify its economy and prepare for the future.
