Guyana, Suriname to benefit from US$1B development funding from IsDB & IDB

The Islamic Development Bank (IsDB) and the Inter-American Development Bank Group (IDB Group) have pledged some US$1 billion to support development in Guyana and Suriname over the next five years.

In a recent joint statement, the two financial institutions said they have renewed their strategic partnership through the signing of a new Memorandum of Understanding (MoU) in Riyadh, Saudi Arabia.
Under this MoU, the IsDB Group and the IDB Group, along with IDB Invest – the arm of the regional bank that lends to the private sector – will provide the US$1 billion in co-financing to the two South American countries.
With newfound oil and gas resources, both Guyana and Suriname are on the path of massive economic transformation. Guyana started oil production in December 2019, which is now expanding at industry-high rates offshore, and oil revenues have been fuelling expansion of the countries’ traditional economic sectors as well as building out new and existing infrastructures.
Nevertheless, this renewed collaboration between the IsDB and IDB Group will focus on advancing inclusive and sustainable development in both countries, with investments focused on key sectors, such as transportation, energy, urban development, education, rural development, health, and resilience.
“At the Islamic Development Bank, we are committed to empowering our member countries and fostering partnerships that advance sustainable development. This renewed engagement with the IDB Group allows us to jointly deliver transformative projects that will enhance livelihoods, strengthen resilience, and promote shared prosperity in Suriname and Guyana,” IDB President Dr Muhammad Al Jasser said.
Meanwhile, President of the IDB Group, Ilan Goldfajn, added, “We are joining forces with the Islamic Development Bank to unlock new co-financing opportunities in Guyana and Suriname, as well as cooperation with other member countries, to build resilience, foster inclusive growth, and improve lives.”
Beyond Guyana and Suriname, the partnership supports broader collaboration in common member countries and IDB member countries with significant Muslim populations.
It was further noted that the MoU also aims to deepen cooperation between the two institutions in areas that promote inclusive growth, including trade and investment, as well as sustainable transportation solutions that enhance regional connectivity and climate resilience.
The institutions also reaffirmed their shared commitment to knowledge sharing and delivering impactful development solutions, as well as strengthening cooperation among Latin America and the Caribbean, Gulf States, and other stakeholders.
Guyana joined IsDB in July 2016 as its 57th member, and since then, the IsDB Group has provided a total of US$ 235.6 million in financing for projects in the agriculture, energy and education sectors in Guyana.
In 2021, the Saudi Arabia-based bank offered Guyana a US$900 million package for mainly infrastructural development works.
Moreover, the IsDB has supported a number of other pivotal projects across Guyana, including the construction of hydropower plants in the Moco Moco and Kumu areas, for which some US$14.63 million was allocated, as well as a US$291,200 grant funding aimed at acquiring resources to enhance the quality of life for residents at the Palms Geriatric Facility.
In September 2023, the IsDB Group and the Guyana Government inked a new Country Engagement Framework (CEF) for the period of 2024-2026. The CEF is a strategic document that outlines the priority areas and sectors for IsDB Group’s interventions in Guyana, in alignment with the country’s national development plan and the IsDB Group’s realigned strategy.
Under this framework, Guyana secured a US$200 million loan from the IsDB to undertake the rehabilitation of the Soesdyke-Linden Highway, which started in June 2024.