Finance Minister presents three loan agreements to National Assembly

See below the full release from the Ministry of Finance:

The PPP/C Government has maintained its established track record of prudent public debt management, allowing Guyana to enjoy strong debt sustainability fundamentals even as there is an expansion in investments in public infrastructure, social services, and other initiatives aimed at improving the standard of living for all Guyanese.

The Government’s effective debt management practices have contributed to a significant decline in the country’s debt ratios over a sustained period. The Government has committed to harnessing Guyana’s debt-carrying capacity to finance its transformative development agenda, and Guyana’s debt position has undergone significant changes over the last three decades. Guyana’s Public and Publicly Guaranteed (PPG) debt-to-GDP ratio has decreased from over 600 percent in 1991 to 24.3 percent at the end of 2024. Over the same period, debt service as a percentage of Government revenues has decreased sharply from about 90 percent to about 5 percent.

As the Government continues to further accelerate its transformative development agenda, for the period from January to April 2025, it has contracted three new loans in the areas of road and water infrastructure, as well as health care.

Palmyra to Moleson Creek Highway Project

On January 14, 2025, the government signed a Deferred Payment Agreement with the China Road and Bridge Corporation for an amount of US$162.7 million. This Deferred Payment Agreement aims to finance the upgrading of the Palmyra to Moleson Creek Highway, Lot 2, which spans from Bloomfield to No. 54. This financing will support one of the three lots under the Palmyra to Moleson Creek Highway Project.

This transformative project will be one of the largest of its kind in Guyana, aimed at modernising and developing Region Six. It is part of the government’s master plan for infrastructural and social development in the region, encompassing not only infrastructural improvements but also an overall enhancement of the well-being of its residents. Most importantly, the project is linked to the Guyana-Suriname agreement to construct a bridge across the Corentyne River, creating major economic opportunities. The project promises improved accessibility and convenience for both residents and commuters.

In addition, this roadway improvement will provide significant economic and social benefits by enhancing mobility and road safety, accommodating farming vehicles, improving the reliability of travel time, and addressing the estimated traffic increases from planned development projects along the corridor. It will also offer substantial support for housing and deep-water harbour developments in the region.

The Palmyra to Moleson Creek road will be upgraded to a four-lane highway to alleviate the heavy flow of traffic currently affecting the region. Improved concrete drains, road signage, pedestrian lanes, and cycling lanes will also be implemented.

The Guyana One Health Project

Aimed at revolutionizing the healthcare system, the Guyana One Health Project is underway, with the Financing Agreement signed on April 1, 2025, between Guyana and the World Bank’s International Development Association (IDA) for SDR 5,400,000.00 (US$7 million). Funding for this project comprises a US$15 million grant from the Pandemic Fund, a facility set up by the World Bank to help countries boost their preparedness for pandemics, such as the COVID-19 pandemic, as well as a US$7 million loan from the World Bank.

This project aims to enhance Guyana’s capacities to prevent, prepare for, and respond to health emergencies through a One Health approach and, in the event of an eligible crisis or emergency, to respond promptly and effectively to it.

Water Supply Improvement Project

The Water Supply Improvement Project aims to improve targeted communities’ access to safe, reliable, and efficient water. On April 4, 2025, the Government and the Caribbean Development Bank (CDB) signed the US$76.2 million loan to finance this project.

Under this project, the water supply systems serving the communities of Bush Lot, Tain to No. 50 village, Walton Hall to Charity, Wakenaam, and Leguan Island are targeted for interventions and will undergo major upgrades.

This infrastructure development initiative involves constructing five water treatment plants, as well as storage tanks, and installing transmission mains and water meters to significantly enhance the quality and reliability of the water supply to the of benefit approximately 15,000 households in these communities.

These three projects underscore this Administration’s commitment to driving significant transformation in Guyana through strategic initiatives. They form part of the government’s comprehensive development agenda, which focuses on several key areas to ensure sustainable growth and improve the quality of life for all Guyanese.