Govt. preparing proposals for funding from Middle Eastern Investment Funds

Oct 30, 2021 News

…as IDB Pres. heads to Guyana to scope out financing projects—Pres. Ali

Kaieteur News – Guyana’s total external debt at the end of June this year stood at some US$3B but this is likely to skyrocket in the near future as the Ministry of Finance is currently prioritising a list of project proposals from its Programme Portfolio to submit to the United Arab Emirates’ Investment Fund for financing.

Head of State, President Irfaan Ali

This is even as the country also considers potential funding from the Kuwait Investment Fund in addition to the Inter-American Development Bank (IDB), who’s President, Mauricio Claver-Carone, is due to visit Guyana imminently for a fact-finding mission on funding opportunities for programmes in Guyana.
During the recent World Expo in Dubai, Senior Finance Minister Dr. Ashni Singh and a group of Guyanese private sector representatives had met with Mubadala, the sovereign wealth investment company within the United Arab Emirates.
The Mubadala delegation was led by Musabbeh Al Kaabi, Chief Executive Officer of UAE Investments.
The meeting took place at Mubadala’s headquarters in Abu Dhabi, on the margins of Guyana’s participation in World Expo 2020.
Expanding on the meeting yesterday during a press engagement at State House, Head of State, President Irfaan Ali, outlined that as it relates to the UAE investment fund, “Our priority is on a few things” and cited as an example, the development of an Industrial Zone.

IDB President, Mauricio Claver-Carone

Additionally, he spoke to the need for the financing projects under his administration’s transformative agenda and pointed to investments in infrastructure, healthcare and a new city in addition to an expanded housing drive on a national scale.
According to the President, there was particular interest shown in Guyana during the expo, especially in the non-oil sector and spoke to the possibility of utilising monies from the UAE’s Investment Fund to finance such projects and cited as example Information Communication Technology.
According to the President, during his recent sojourn overseas, he also met with the Prime Minister of Kuwait, Sabah Al-Khalid Al-Sabah, leader of another of the Middle Eastern oil producing countries with significant assets in their investment funds.
The President reported that in addition to discussing areas of cooperation in areas of climate change and oil and gas investment, the Kuwaiti Investment Fund stands ready to discuss development needs and financing for priority projects in Guyana.
Meanwhile as it relates to the IDB, President Ali told reporters that the duo met to discuss the finalisation of programmes for which Guyana presently has applications.
According to President Ali, he was assured by the IDB head that the priorities of the Guyana Government, in fact, align with that of the bank.
He in fact reported that the IDB is keen on remaining one of Guyana’s primary development partners and reemphasized its commitment to Guyana.
President Ali in fact reported that the President of the bank himself would be visiting Guyana imminently with view to getting a fuller understanding of the types of projects required as critical in Guyana and areas where the bank can provide financing.
The IDB currently has the largest share of Guyana’s external debt and according to the government’s mid-year report on the country’s finances.
According to the information contained in the Mid-Year Report for 2021, monies received from the IDB in loans increased 10 fold, from US$5.2 million in the first half of 2020, to about US$55.5 million for the corresponding period in 2021.
The report stated, about 75.2 percent of the latter amount was allocated to combating the economic and social ramifications of the pandemic.