A four-lane bridge at Wismar, Linden and infrastructure for 2,500 housing units are to be financed by two loans for a total of US$150m signed yesterday in Georgetown between the Guyana Government and the Saudi Fund for Development (SFD).
Minister of Finance Dr Ashni Singh signed the pacts with SFD Chief Executive Officer, Sultan Al-Marshad. The terms of the loans were not disclosed in the press release issued yesterday by the Ministry of Finance.
The first loan agreement, worth US$100 million aims to respond to the growing population demands by developing the infrastructure to provide about 2,500 housing units across three different regions in Guyana, the ministry said. Additionally, the project includes paving the main and secondary roads, establishing water, sewerage and electricity networks, drilling wells for each of the project areas, and the construction of social facilities serving multiple benefits. The release said that it will not only address the current housing shortage and improve living conditions, but also stimulate the local economy through direct and indirect job opportunities in the housing sectors.
The second loan valued at US$50 million, for the Construction of Wismar Bridge Project, aims to build a four-lane bridge parallel to the existing Mackenzie-Wismar Bridge, to improve road network connectivity and the flow of transportation. The release said that the bridge will also link up with the existing road network on both sides of the Demerara River, ensuring easier access to nearby public facilities such as Mackenzie Hospital, and other government facilities.
These agreements are a follow-up to the May 12 last signing of a Memorandum of Understanding (MOU) between the Finance Minister on behalf of Government and the Saudi Fund for Development’s CEO regarding participation in these projects. The MOU was signed on the sidelines of the 2023 Islamic Development Bank (IsDB) Group’s Annual Meetings in Saudi Arabia, where Dr. Singh headed Guyana’s delegation.
The agreements were signed in the presence of President Irfaan Ali.
During the signing ceremony, President Ali thanked the Kingdom and People of Saudi Arabia and complimented the leadership of the SFD for the efficient manner in which they were able to conclude the agreements and the ease in which they do business. He also complimented the local team led by the Minister of Finance for the efficient way in which they were able to advance the projects.
“We are very pleased that we were able to advance the projects at such a pace”, the Head of State said.
SFD Chief Executive Officer, Al-Marshad, said: “Today’s agreements mark SFD’s first presence in Guyana and the beginning of development cooperation between both our countries. The two agreements signed today aim to support the housing and transportation infrastructure sectors in the country, which will lead to major benefits in health, education and the standard of living. Both of these infrastructure projects will support access to vital services, and represent an essential drive for achieving seven United Nations Sustainable Development Goals (SDGs), particularly SDG 3, Good Health and Wellbeing, SDG 6, Clean Water and Sanitation, and SDG 11, Sustainable Cities and Communities.”
The release said that this form of development cooperation emphasizes Saudi Arabia’s commitment to supporting Small Island Developing States to overcome sustainable development and climate change challenges.
The release added that the SFD finances development projects in developing countries by granting them loans and the technical aids necessary for financing studies and institutional support.
The signing ceremony was also attended by Collin Croal, Minister of Housing and Water; . Juan Edghill, Minister of Public Works; Deodat Indar, Minister within the Ministry of Public Works; Susan Rodrigues, Minister within the Ministry of Housing and Water and officials from both sides.
