Georgetown: High Commissioner of India to Guyana, Ventakachalam Mahalingham, has indicated that the Line of Credit (LOC) approved by his Government earlier this year is available, but there are certain procedures to follow before the monies can be released to Guyana.
During a visit to India in January, former President Donald Ramotar secured a Line of Credit to build a bypass road from Ogle to Eccles, linking East Coast Demerara to the East Bank, as well as the purchase of a ferry. The agreement was tied up between Ramotar and India’s Prime Minister, Narendra Modi, during a meeting held on the sidelines of 13th Pravasi Bharatiya Divas at Gandhinagar.
High Commissioner Mahalingham explained that he is in the process of working with the Guyana Government to determine the way forward on the bypass road project.
The LOC for this project is to the tune of US$50 million. He noted that an agreement has to be signed between the Government of Guyana and the India Export and Import (Exim) Bank outlining the details of project before the money can be paid.
“The agreement is with the Government of Guyana and they have to make the decision because it’s a new Government, and the project was proposed by the previous Government. So the new Government has to take a view whether they would like to pursue this project and when would they like to purse this project,” he outlined.
On the acquisition of the ocean going vessel to run the north-west district, the Indian High Commission stated that that this has been mostly approved by the Indian Government. He remarked that if completely approved, there will be a Line of Credit for US$9 million and G$9 million.
In addition, Mahalingham disclosed that during a recent visit with Infrastructure Minister, David Patterson, he informed that any other project that his Government wants to take forward and needs assistance with, then they can approach the Indian Government.
“We would like to work with the Government of Guyana on the basis of Guyana’s interest. We are willing to commit ourselves to whatever project the Government of Guyana proposes and take it forward to get the approval of the Government of India,” the High Commissioner declared.
Following the meeting last Friday, Minister Patterson told this newspaper that his Government appreciates this gesture by the Indian Government. “They are willing to extend the Line of Credit beyond the amount that was already committed…He said the Government of Guyana can modify and change the scope of the project,” he said.
Additionally, the Infrastructure Minister underscored that, while he not familiar with the details of the agreement or the project, he noted that High Commissioner Mahalingham was kind enough to brief him on the agreement, and even left a copy. Patterson explained that his Ministry will have to review the documents and then consult with his Foreign Affairs and Housing colleague Ministers in order to decide on the way forward.
While the monies were approved by the Indian Government, it was reported in an Indian newspaper that the LOC to Guyana was among a list of LOCs to several other countries that are in limbo after India’s External Affairs Ministry’s budget was cut. The Telegraph in Calcutta, India, had reported in May that documents from the Ministry shows several overseas projects as “curtailed” since this year’s total foreign office budget for aid to Latin American countries is only approximately US$5.1 million.
However High Commissioner Mahalingham clarified that LOCs are not from the External Affairs Ministry’s budget, but is actually from the India Exim Bank. He went on to say, “So if by chance the Ministry of External Affairs’ funds are curtailed, it will have no impact on the LOCs because the LOCs are from the Exim Bank, which is an entirely different entity; it’s almost like a commercial bank,” he stated.
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