Guyana, IDB ink over US$200M loans for health, climate, small business projects

…financing hospitals, EBD highway rehabilitation on agenda

The Inter-American Development Bank (IDB) has signed several loan agreements with Guyana amounting to over US$200 million, which will go towards financing upgrades in the local health sector, climate resilience and small to medium business enterprises.

It was explained at the signing, which took place during the XI Annual Consultation of Caribbean Governors at the Hyatt Regency in Trinidad and Tobago, that up to US$160 million will be made available through a conditional Credit Line for Investment Projects (CCLIP) and US$97 million in an individual loan will go towards financing healthcare improvements.
The second loan agreement of up to US$100 million will be for financing climate resilient infrastructure such as roads. Meanwhile, the third loan agreement is to support competitiveness and quality standards among micro, small and medium business enterprises. Up to U$8 million will go towards this.
Welcoming the agreements, Senior Minister in the Office of the President with responsibility for Finance, Dr Ashni Singh said that they signify IDB’s status as a long-term development partner of Guyana.
“The strength of this partnership is evidenced by the three agreements we’re going to be signing today, making critical investments in three areas that go to the core of Guyana’s development agenda. The first is transport infrastructure which is absolutely critical. In particular, this project will support rehabilitation of the East Bank of Demerara highway, which is a major artery in Guyana, given the growth taking place in Guyana,” Dr Singh said.

“The second investment is in the public healthcare system and in particular, the rehabilitation and/or expansion of new hospitals in seven different areas, including in remote areas in Guyana and in employing Information and Communication Technology for telemedicine solutions. Which is an excellent innovation and will transform the quality of healthcare in remote areas.”
Dr Singh further noted that the funds from the third loan agreement will, among other things, go towards financing a new, state of the art laboratory for the Guyana National Bureau of Standards (GNBS).
“One of the major investments that will be made in this area is the establishment of a new, world-class, state-of-the-art laboratory… that laboratory will play an absolutely critical role in the standards and certification, which of course have taken on new and enhanced importance, given the changes taking place in Guyana’s economy. It’s important for us to be compliant with international standards and to be certified as compliant,” the Finance Minister further explained.
IDB has funded several projects in Guyana over the years. Only last year, it was announced that the IDB would loan Guyana US$43 million to help build and upgrade over 15 schools. Another announcement last year was that Guyana had secured a US$97 million loan from IDB to strengthen its healthcare network.
Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance, and training to the public- and private-sector clients throughout the Region.
Access to proper healthcare has been high on the Health Ministry’s agenda, with an injection of a whopping $73 billion into the sector during the 2022 budget. The 2023 budget allocated some $84.9 billion to the health sector, which will go towards financing the construction of various paediatric and maternal hospitals and six new regional hospitals.
Additionally, money will also go towards rehabilitating and expanding existing hospitals, while over $500 million has been allocated to train healthcare professionals. Government is presently building several state-of-the-art health facilities across Guyana. There has even been talk of a stem cell facility. In 2021, the sod was turned for a new $2 billion multi-specialty hospital, to be constructed in Suddie on the Essequibo Coast.
President Dr Irfaan Ali has publicly said that the Government is embarking on ensuring that the healthcare sector is modernised, including the introduction of telemedicine. According to President Ali, by 2030, Guyana will offer healthcare services that are internationally recognised. (G3)