President Ali praises Saudi Gov’t for swift approval of US$150M loan

Jun 06, 2023 News

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…as agreement inked

Kaieteur News – President Irfaan Ali on Monday praised the Kingdom of Saudi Arabia for its swift approval of a US$150 million loan that will be channeled to develop the local housing and infrastructure sectors.

During a simple ceremony hosted at the Office of the President, Finance Minister, Dr. Ashni Singh signed the two loan agreements on behalf of Guyana, while the Kingdom of Saudi Arabia was represented by Chief Executive Officer of the Saudi Fund for Development, His Excellency Sultan Al-Marshad.

A team from Saudi is in Guyana on a three-day visit for official business and has been invited by the President to take advantage of the private sector opportunities available, not only in the oil and gas sector but in the other industries as well.

While delivering remarks at the event, the Head-of-State commended the Kingdom of Saudi Arabia for “the ease of doing business” explaining that the pace of the loan approval was “second to none”. He said, “I think it is a good example for many international bodies and agencies, multilateral agencies and what the focus should be when we are delivering financing for development. The focus should be on the project and the people and not conditions and circumstances that seek to delay the delivery of results for the people. This was an excellent example of the focus being on the people, on the country and on the project.”

He noted that the Kingdom of Saudi Arabiia has been very supportive of the Government of Guyana at the Islamic Development Bank (IsDB), where only a month ago, the country was able to sign a loan agreement for the reconstruction of the Linden Soesdyke Highway. Ali noted that by September, government is aiming to commence that project.

Meanwhile, the Head-of-State pointed out that while the loan is funding infrastructural development, it is just a temporary endeavor for future growth. He said, “We are on a trajectory in which we are seeking also to build new relationships, to enhance and strengthen old relationships and to build new relationships…we look forward greatly to this continued partnership and the speed at which you operate in helping us on this journey to modernization.”

The President also invited the Saudi Kingdom to engage Guyana on identifying areas where the two countries can collaborate in the future to “advance the next tranche of resources for the next phase of development”. He told the visiting delegation that Guyana has a mountain of private sector opportunities in which it can be involved, through partnerships with locals.  The cost of financing he said is second to none and is testimony to the will of the Kingdom of Saudi Arabia to support projects that advance humanity globally.

He explained that the People’s Progressive Party (PPP) administration committed to deliver 50,000 house lots in five years and the investment by the Saudi Fund will ensure government realize this aspiration.

Meanwhile, Al-Marshad in his address noted, “Today marks an exciting and bright chapter for both of our countries, having signed two development loan agreements worth US$150 million.” He said that the loan will go towards funding infrastructure development works for the housing sector and constructing the Wismar Bridge in Linden.

“The funded project was provided by the Kingdom of Saudi Arabia through the Saudi Fund for Development. It reflects our commitment to promote sustainable social economic development in Guyana and support local communities through enhanced transportation and housing infrastructure,” he said.

The first US$100 million is being channeled to fund housing infrastructure to provide approximately 2,500 housing units in three administrative regions in the country. It is understood that community roads will also be funded through this loan, along with the establishment of electricity, water and sewer systems.

Meanwhile, the second aspect of the loan, pegged at US$50 million will be used to construct the Wismar Bridge to improve connectivity to relieve traffic jams.  “Both projects will contribute to seven United Nations Sustainable Development Goals (SDGs), particularly SDG Three, Good Health and Wellbeing; SDG Six, clean water and sanitation, SDG 11, sustainable cities and communities,” the CEO said.

In addition to the Minister of Finance, Minister of Public Works, Juan Edghill and Minister within the Ministry of Public Works, Deodat Indar, along with the Senior and Junior Ministers of Housing and Water, Colin Croal and Susan Rodrigues respectively were present at the ceremony.

This is the first agreement Guyana has inked with the Saudi Fund for development. It also makes the nation the 88^th in the World to receive funding for major development projects, from this initiative. It was reported that at the end of 2022, Guyana’s total debt surpassed US$3.6 billion, increasing from the previous year by 16.9 percent.  The GoG believes that the sudden tripling of the country’s Gross Domestic Product (GDP) has positioned the country better to take more loans. https://kaieteurnewsonline.com/2023/02/17/guyana-in-better-position-to-take-more-loans-finance-minister/

 

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• Approval, Debt, loan, Saudi, swift

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