…MoU opens doors for funding for developmental projects – Ali
One of the highpoints of President Dr Irfaan Ali’s trip to Washington is the signing of a US$2 billion agreement with the United States (US) Export Import (EXIM) Bank, which will allow for funding for a range of projects, including in the renewable energy sector.
The signing of the Memorandum of Understanding (MOU) between Guyana and the US EXIM Bank occurred on Wednesday in Washington DC. Under the agreement, the parties agreed to explore options for utilising EXIM’s standard instruments, which include direct loans and medium- and long-term guarantees, to finance US exports to Guyana for Government projects totalling US$2 billion.
US EXIM Bank President Reta Jo Lewis (left), with President Dr Irfaan Ali following the signing
Signing the documents were Foreign Affairs and International Cooperation Minister Hugh Todd and EXIM Bank President Reta Jo Lewis. Also present was First Vice President and Vice Chair of the Board of Directors at the bank, Judith Pryor.
Afterwards, President Ali spoke of what the MOU would mean for Guyana, outside of just oil and gas. He noted that the US$2 billion figure the MOU sets for developmental projects in Guyana is an initial figure.
“The areas that were identified shows the broad, multi-faceted nature of the leadership of EXIM Bank. Anyone looking out on Guyana now narrowly focus on oil and gas at their own detriment, because the country has significant other distinct advantages in becoming the leader on climate change and environmental and biodiversity services for food security and agriculture — critical infrastructural links that can unlock tremendous potential for the vast array of natural resources we have.
“Unlocking the connection of Northern Brazil to the Atlantic Ocean…will develop a logistics and transport hub second to none in scale,” President Ali further said.
According to President Ali, the Information Communication and Technology (ICT) sectors are also addressed in the MoU. Also included are medium sized projects, which he said are addressed in a holistic way.
President Dr Irfaan Ali, along with members of his visiting delegation and the EXIM Bank team
The President also spoke about the wider signal the signing of the MoU sends for the entire Caribbean region. According to him, the MoU can be better consummated in a high-level visit from officials of the EXIM Bank to Guyana, where they can have a round-table discussion.
“This is a day that is the single most important signal, not just for Guyana, but the entire region: that the United States, through one of its agencies, the EXIM Bank, is serious about the commitment to this region.
“This signal is an open invitation to the Private Sector from both countries to now move aggressively forward on a platform supported by the Government of Guyana and the EXIM Bank. I hope they make full use of this opportunity,” the President added.
President Ali left for the US on Sunday, accompanied by Vice President Bharrat Jagdeo, Minister Todd, and Foreign Secretary Robert Persaud. He has already met with US Secretary of State Anthony Blinken and Vice President Kamala Harris.
In his remarks, the US Secretary of State had said that Guyana has been a very strong partner for the United States, and is in many ways a global leader. The two countries, he added, would continue to advance discussions and collaboration in areas for cooperation.
Blinken hinted that, in the weeks ahead, several initiatives between the two countries would materialise, particularly climate change and energy, which have been important topics during this current visit to deepen bilateral engagements.
The United States, Blinken had emphasised, is “very eager to continue to deepen and strengthen the partnership,” which will also redound to the benefit of the region, given the fact that Georgetown, the country’s capital, is also the seat of Caricom.
Meanwhile, President Ali has committed to working jointly in areas of mutual collaboration for not just Guyana, but the Caribbean Community.
The President noted that the discussions this week are a continuation of the dialogue between the two countries, which was initiated during June’s Ninth Summit of the Americas, in which critical issues for Caricom as a region were identified, which include food security, energy security, financing, and the issue of climate change.
The United States and Guyana have a deep-rooted history of trade, public health initiatives, economic development, and collaboration to empower civil society, promote stability, and reinforce security.
The International Monetary Fund (IMF) has stated that Guyana’s economy is the fastest growing in the world. The Guyana economy is forecasted to grow this year at roughly 47 per cent, with a projected GDP of US$9.5 billion. Additionally, Guyana serves as a gateway to Caribbean trade development, as it is home to the Caribbean Community (Caricom) Secretariat. (G3)
