Govt inks US$23.27M deal with Indian EXIM Bank to buy GDF aircraft

As part of efforts to bolster the country’s defensive capabilities, the Guyana Government has signed a Line of Credit (LOC) to the tune of US$23.27 million with the Export-Import Bank (EXIM Bank) of India for the procurement of two aircraft for the Guyana Defence Force (GDF).

The agreement was signed on Friday by Senior Minister in the Office of the President with Responsibility for Finance and the Public Service, Dr Ashni Singh, and the Indian EXIM Bank’s Deputy General Manager – Line of Credit Group, Sanjay Lamba in Georgetown.
This agreement represents the latest instalment of the Guyana Government’s ongoing efforts to ramp up the capabilities of the GDF, and has its genesis in President Dr Irfaan Ali’s visit to India’s State-owned aerospace and defence company – Hindustan Aeronautics Limited just over a year ago in January 2023.

Unwavering support
Delivering remarks during the signing at the Finance Ministry, Dr Singh placed on record Government’s strong appreciation of India’s unwavering support to Guyana, and alluded to the two countries’ long-standing relationship grounded in history, people, and culture, and in more recent times, economic and commercial cooperation. In welcoming the EXIM Bank’s representative to Guyana, the Finance Minister also recognised the institution’s instrumental role in facilitating the presence of Indian companies in Guyana, thereby allowing for the expansion of productive capacity in various sectors of the country.
It was on this note that Dr Singh said, “…we want to see more Indian companies doing business in Guyana, we are open to companies from around the world, including, of course, India, and India is amongst the economies that are at the cutting edge of technology, and we want to receive the benefit of that cutting-edge technology.”

Further reiterating Government’s commitment to bolstering the country’s security sector, Minister Singh explained that the Government was investing heavily in strengthening the capabilities of the GDF, in particular, some of its specialised wings, such as the Air Corps and the Coast Guard. He further said that the purchase of the two aircraft was part of the biggest-ever investment in the capitalisation of the Force thus far.

Tremendous efforts
Dr Singh also used the opportunity to thank Lamba and team for the Bank’s tremendous efforts in concluding the LOC, and acknowledged the efforts of everyone else who contributed, including High Commissioner Dr Amit Telang and the team from the Indian High Commission; Chief of Defence of the GDF, Brigadier Omar Khan and his team; and Chief Planning Officer Dr Tarachand Balgobin, along with other technical staff of the Ministry of Finance.
High Commissioner of India to Guyana, Dr Amit Telang, during remarks, said that India attached great importance to the relationship it shared with Guyana, and the signing of the LOC was just another means of cementing its partnership with Guyana. He further placed on record that the Agreement was the first-ever defence LOC signed with a Caribbean State.
Meanwhile, Lamba, who is visiting for the first time, commented that working with the Guyana Government has been very satisfactory, and he looked forward to a continued relationship between Guyana and the Bank.
Chief of Staff of the GDF, Brigadier Khan, speaking on behalf of the defence sector, recognised the role that the Government of India has played in defence training over decades in Guyana and noted that the signing was in keeping with President Ali’s vision of a strengthened security sector that will help to maintain the peace and prosperity for One Guyana.
With the aim of enhancing Guyana’s defensive capacity, Government has allocated some $42.2 billion of the $1.146 trillion 2024 Budget towards building the technical capabilities and assets of the GDF.
Vice President Bharrat Jagdeo had disclosed in January that a total of four new helicopters will be procured for both the Army and the Guyana Police Force. Back in October 2020, the US State Department had approved the sale of four helicopters – two Bell 412Epi and two Bell 429 helicopters – and related equipment to Guyana to the tune of US$256 million.
Only in December 2023, one of the GDF’s newest helicopters was damaged in a horrific crash that claimed the lives of five servicemen. Brigadier (Retired) Gary Beaton; Lieutenant Colonel Michael Shahoud; Lieutenant Colonel Sean Welcome; Lieutenant Colonel Michael Charles, and Sergeant Jason Khan were part of a seven-member crew on board the Army’s Bell 412 helicopter when it lost signal near Guyana’s western border on December 6, 2023. The chopper was found the following day in the Region Seven forest with only two survivors.
Meanwhile, in addition to building its air fleet, the Guyana Government also has a LOC with India to acquire marine assets that will be used to enhance the policing of Guyana’s Exclusive Economic Zone (EEZ).
Last month, Brigadier Khan told Guyana Times that a brand-new Offshore Patrol Vessel (OPV), which was built by US-based Metal Shark Boats for the GDF, is expected to arrive soon. This vessel will boost the army’s capacity to monitor Guyana’s maritime borders.
The LOC signed on Friday is the 11th such agreement that the Government of Guyana has to date received from the Indian EXIM Bank over the years.
Guyana and India established diplomatic relations on May 26, 1966, and continue to have a robust developmental cooperation programme aimed towards the mutual benefit of both countries. (G8)