Govt explains reason for delays in India-funded projects

Guyana has managed to secure funding from India for several major infrastructural projects, but the release of funds for those projects has been delayed by Guyana’s inability to satisfy certain stipulations set by India.

Finance Minister Winston Jordan explained that one of those stipulations is that

both the contractors and consultants for these projects must come from India.

This, however, serves as a major impediment, as Guyana is finding it difficult to hire Indian contractors because the contracts are comparatively small.

“We are experiencing grave problems in getting movement – traction — in getting these contractors on board. There is a new system in place in India; a new procurement tendering system which, according to (the) High Commissioner of India, everybody is still trying to get familiar with,” Minister Jordan told the media.

Guyana has already received funding from India for several projects, among which are the US$50 million East Coast/East Bank Demerara road project; US$4 million for drainage pumps; US$10 million for a North West District ferry, and US$17.5 million for the modernisation of three health care facilities.

Minister Jordan has said that Government cannot be blamed for the delay in implementation of the projects to be funded by India, especially the East Bank/East Demerara road project which was signed one year ago. He said that while the cost of the projects may appear substantial in Guyana dollars, they are considered small by “Indian standards.”

“It’s big for Guyana but it’s very little for the Indians; so to get (Indian) contractors who are interested is ‘a bit of an issue really’, that is part of the problem that we would have been having,” he explained.

Jordan has indicated that Government may use other approaches to clear that issue.

“The money is there, and people are excited that we have got the money and so on; but this is the other hurdle that is challenging, and we’ll have to find creative ways to get around what seems to be a logjam,” he explained.

He disclosed that Government has, on several occasions, written to the Indian High Commissioner on the issue. It is his hope that both parties would meet to find a solution to the problem.