Demerara Distillers Limited (DDL) yesterday clinched a US$22m loan from the private sector arm of the IDB which will allow it to boost output of milk and juice while also diversifying its energy mix.
The signing took place at DDL and was overseen by Senior Minister in the Office of the President with Responsibility for Finance, Dr. Ashni Singh.
A release from the Ministry of Finance said that the Inter-American Development Bank’s (IDB’s) Resident Representative Lorena Solorzano-Salazar and Division Chief of Corporates, Aitor Ezcurra pointed out during their remarks that the transaction will assist DDL in energy diversification, broadening of the products it offers as well as an expansion of its labour force.
Ezcurra emphasized the importance of private sector development to overall social and economic growth further adding that diversification of exports, working with the agricultural value chain, and smaller farmers in the fruits business are all part of the things considered. He said that it will also be contributing positively to CARICOM’s 25 by 2025 initiative.
Solorzano-Salazar pointed to the importance of energy and economic diversification and why the IDB-Invest considered the initiative to be imperative.
Executive Chairman of DDL, Komal Samaroo recalled that DDL was the first to be ISO-certified in 1995 and the first to establish a bio-methanization plant in the Caribbean, the release said. He stated that the Company aims to commit in excess of US$100 Million in Capital projects as part of its future plans.
He added that the loan agreement with IDB-Invest will provide the resources required to fund the diversification strategy of the DDL group and the transition to renewable energy.
The loan will allow DDL to develop a new one-litre packaging line for juice and milk, set up an automated fruit processing line, and finance the construction of a 3.25 MW solar photovoltaic (PV) generation system with battery storage for self-consumption.
The release said that the financing will also assist DDL to align its growth strategy by increasing productivity and diversifying beyond rum production to incorporate new and healthier products produced locally. In addition, the financing will also bolster the local supply chain of Small and Medium Enterprises (SMEs) fruit and vegetable producers by expanding the number of farmers that supply to DDL.
IDB Invest previously provided technical aid to DDL for the development and implementation of a solar PV and energy storage system, promoting the adoption of energy efficiency measures and environmental improvements such as fire and safety and water management. These interventions are expected to contribute to six of the United Nation’s Sustainable Development Goals, Affordable and Clean Energy (SDG 7), Decent Work and Economic Work (SDG 8), Industry, Innova-tion and Infrastructure (SDG 9), Reduced Inequalities (SDG 10), Respon-sible Consumption and Production (SDG 12) and Climate Action (SDG 13), the release added.
Speaking at the signing, the Finance Minister said that the loan deal is the largest ever by IDB- Invest with any private sector entity in Guyana and aligns with the 25 by 2025 initiative of the Caribbean Community (CARICOM) which aims to cut its large food import bill by 25 percent by 2025.
Singh added that the People’s Progressive Party/ Civic Government has been encouraging IDB-Invest to do more and larger operations with the private sector of Guyana.
In October, 2022 and January 2023 IDB-Invest signed US$4 Million loan agreements with Munesh-wers and John Fernandes for each to procure a mobile crane.
On its website, IDB-Invest says it aims to be the partner of choice for the private sector in Latin America and the Carib-bean. “We finance projects to advance clean energy, modernize agriculture, strengthen transportation systems and expand access to financing”, it said.
It added: “As the private sector arm of the IDB Group, we know the region. We work where our clients are and can provide them with customized financing solutions and expert advice tailored to their specific industry and market”.
IDB-Invest is owned by its 48 member countries, 26 of which are in the Latin American and Caribbean region. Each country’s voting power is proportional to the number of IDB Invest shares it holds.
