Georgetown: A new credit agreement valued at US$50 million was signed today by representatives Guyana and the India EXIM Bank. It is for the extension of a new Line of Credit to the Ministry of Public Infrastructure and will facilitate the construction of the road link between Ogle on the East Coast of Demerara and Diamond on the East Bank of Demerara.
Minister of Finance Winston Jordan and Resident Representative, Export/Import (EXIM) Bank of India, T.D Sivakumar signed the credit agreement. This was done in the boardroom of the Ministry of Finance.
Witnessing the signing were, Minister of Public Infrastructure, David Patterson, Minister within the Ministry of Finance, Jaipaul Sharma and Indian High Commissioner to Guyana, H. E. Shri Venkatachalam Mahalingam.
Minister Patterson told reporters that the proposed new road will be four lanes, with two paves.
He explained that since the project is being funded by an Indian Bank, the road contract will only be open to contractors from India. However, there will be several sub-contracting opportunities for local contractors and businesses, for materials and labour.
Additionally, the Ministry will be immediately moving to retain a consultant to finalise the design for the road. This process is expected to take approximately three months. Following this, the Ministry will proceed with the advertising, tendering and the subsequent awarding of the contract, Minister Patterson said.
He added that the Ministry expects construction works on the road to begin by the last quarter of this year and completed by the end of 2018.
The proposed new road will intersect several communities, including Sophia, South and North Ruimveldt, Eccles and Providence.
According to Patterson, the reserve for the road works are already in place hence the project will not be impeding by any of the housing, or water developments in the areas.
The Public Infrastructure Minister also expressed gratitude to the Government of India for continuing the project, which he pointed out was started under the then People’s Progressive Party Civic (PPPC) administration.
“Thank you, for continuing with the project. Thank you, for having the trust and the faith in this administration to carry this project to its successful conclusion,” Patterson said.
Back in January, 2015 when then President, Donald Ramotar had visited India, India’s Prime Minister, Narendra Modi had announced the US$50 million line of credit for the construction of the road.
The Indian Government also came in for high praise from Finance Minister Jordan, who noted that India is easily one of Guyana’s longest and most cherished bilateral partners.
He explained that not only is India one of Guyana’s largest bilateral donors and friend “but at a time when concessional resources are dwindling and at a time when we have extreme demands in terms of accelerating our development, India has continued to be a reliable partner in development, generously donating whether grants or technical assistance in various areas including health, education and for this, we are grateful.”
The Finance Minister urged maximum utilisation of the loan, as did High Commissioner Mahalingam, who noted that the signing of the Line of Credit was long-awaited.
He also assured that the Indian Government will go out of its way to assist the Guyana Government with executing the project and will continue its cooperation with Guyana on similar projects in the future
The US$50M project is expected to be the first phase towards achieving the long term goal of the Guyana Government to connect the Ogle International Airport and the Cheddi Jagan International Airport.
The proposed new road link will allow for an alternative access route to several new housing areas on the East Coast and East Bank, Demerara and for expanding business opportunities.
It should ease the traffic congestion on the East Bank and East Coast highways and in the City as well by diverting traffic onto the alternative by-pass.
Meanwhile, Minister Jordan and Resident Representative, T.D Sivakumar also signed an amended contract. This is for a line of credit signed some two years prior with the India EXIM Bank for US$4Million for the supply of 14 pumps to Guyana.
Minister Jordan explained that though the contract provided US$4M for the procurement of the pumps, Guyana had only utilized about $3M. The agreement signed today is also to state this, he explained.
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