Not opposed to China loans, but worried about overall management of the debt- Jagdeo – Calls for release of MOU guiding Belt and Road Initiative

Sep 27, 2018 News

Opposition Leader, Bharrat Jagdeo

By Abena Rockcliffe-Campbell
Opposition Leader, Bharrat Jagdeo, remains a huge fan of China and the loans the communist country has to offer. However, he is concerned that the “incompetence” of the APNU+AFC is so potent that proper debt management can very well be in jeopardy.
At a press conference he hosted at his Church Street office, yesterday, Jagdeo noted that the government, through the Department of Information (DPI), announced that the Linden-Lethem road would be one of the projects executed under the Belt and Road Initiative.
“We are not sure about whether this was part of the agreement signed,” said Jagdeo.
Jagdeo said that he is not opposed to loans from China, but, “I am worried about the overall management of the debt.”
He continued, “My concern is how they manage our debt. So we have to look at the conditions of the loans. I know Chinese loans are very concessional. So when you look at the grant element it tends to be very high. Once those are met and the projects are good we will support them.”
Jagdeo said that the People Progressive Party/Civic (PPP/C) believes that it must embrace China and the developing world as partners.
He said, “The United States of America is a long vested partner of Guyana and will remain so. It does not have to be one at the expense of the other. We have to look out for what is in our best, interest, our government and our people. If there is anything in those loans that is not in our best interest, then we have to address it.”
Jagdeo said that the government should have no qualms revealing the Memorandum of Understanding (MOU) that it signed with China for the Belt and Road Initiative.
Jagdeo said, “I am sure that there is nothing in that MOU that we will find like a smoking cod. I am sure that they can release the MOU and they should because if we are committing to a global initiative, which we believe is good for the countries involved then why should we want to release it a lot of those agreements.”
This is a far cry from Jagdeo’s operation. Memoranda and agreements were kept secret with spokespersons for Jagdeo quoting confidentiality clauses. The oil contract that the PPP signed was secret until the David Granger administration opted to release it.
Jagdeo said that usually, in the negotiating phase, there is a confidentiality clause “but once it is signed then it becomes the property of the state and it can be released,” something he never did.