Latest update June 2nd, 2023 12:49 AM
Mar 28, 2023 News
Kaieteur News – The Demerara Distillers Limited (DDL) has secured a US$22M loan from the Inter-American Development Bank (IDB) to expand its production of milk and juice.
The loan was facilitated through IDB’s private sector arm, IDB-Invest. A Ministry of Finance press release noted that the signing took place at DDL’s headquarters and was overseen by Senior Minister in the Office of the President with Responsibility for Finance, Dr. Ashni Singh.
Speaking at the signing, Dr. Singh said that the transaction is the largest ever done by IDB Invest with any private sector entity in Guyana and is in alignment with the 25 by 2025 initiative of the Caribbean Community (CARICOM) which aims to reduce its large food import bill by 25 percent by 2025.
Minister Singh noted as well that the People’s Progressive Party Civic (PPPC) Government has been encouraging IDB-Invest to do more and larger operations with the private sector of Guyana as he recalled that government has been advocating for this for several years.
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 and diversification in terms of products of the company as well as in expansion of its labour force among other aims. Mr. 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 as well as the fact that the agreement would be contributing positively to CARICOM’s 25 by 2025 initiative.
For her part, Mrs. 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 the DDL Board, Mr. 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. He said that the Company’s aims to, as part of its future plans, commit in excess of US100 Million dollars in Capital projects. He noted that the loan agreement signed today will provide the resources required to fund projects in pursuance of the diversification strategy of the DDL group and the transition to renewable energy.
The loan will enable 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 3.25MW of solar photovoltaic (PV) generation system with battery storage for self-consumption.
The financing will also help DDL align its growth strategy by increasing productivity and diversifying beyond rum production to incorporate new and healthier products produced locally. It will also contribute to climate change mitigation by incorporating renewable energy, replacing fossil fuel sources. In addition, the financing will strengthen the local supply chain of Small and Medium Enterprises (SMEs) fruit and vegetable producers by increasing the number of farmers that supply to DDL.
IDB Invest previously provided technical assistance to DDL for the development and implementation of 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, Innovation and Infrastructure (SDG 9), Reduced Inequalities (SDG 10), Responsible Consumption and Production (SDG 12) and Climate Action (SDG 13).
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of $15.3 billion in asset management and 375 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
Government has been long advocating for IDB-Invest to finance initiatives in the private sector and the Financial Institution has been moving speedily in this regard. In October, 2022 and January 2023 IDB-Invest signed US$4Million loan agreements with Muneshwers and John Fernandes respectively for each to procure a mobile crane.
UPDATE on Court Case for Full Protection!
Jun 02, 2023Kaieteur Sports – Female player Dinelle Lindee and Andrew Bennett, both from the rapid rising, Rose Hall Community Center Cricket Club, were the latest young cricketers to benefit from this...
Jun 02, 2023
Jun 02, 2023
Jun 02, 2023
Jun 02, 2023
Jun 02, 2023
Kaieteur News – Major fires always seem to occur in Guyana when few persons are around. From the destruction of the... more
By Sir Ronald Sanders Kaieteur News – The report on May 17, from the World Meteorological Organization, (WMO) that... more
Freedom of speech is our core value at Kaieteur News. If the letter/e-mail you sent was not published, and you believe that its contents were not libellous, let us know, please contact us by phone or email.
Feel free to send us your comments and/or criticisms.
Contact: 624-6456; 225-8452; 225-8458; 225-8463; 225-8465; 225-8473 or 225-8491.
Or by Email: [email protected] / [email protected]