With the United Kingdom already partially funding the Linden-to-Mabura Hill Road Expansion Project, there are opportunities for Guyana to tap into other UK financing mechanisms to continue the second phase of the all-weather road to Lethem.
Earlier this year, the UK Export Finance (UKEF), the UK’s export credit agency, almost tripled its risk appetite for Guyana from £750 million to a whopping £2.1 billion, allowing for both the Government and the local Private Sector to access funding. UKEF aids overseas buyers across the world in accessing the financial support they need to procure from the UK, unlocking the potential of the UK supply chain by making their bids more competitive.
During an interview with this publication on Tuesday, British High Commissioner Jane Miller said Guyana could access the UKEF to finance the Mabura Hill to Lethem section of the critical road project.
“Through UK Export Finance, there are opportunities for funding to be used for the rest of the road,” High Commissioner Miller stated.
The US$190 million Phase One of the project will see 121 kilometres of asphaltic road being built from Linden to Mabura Hill in Region 10 (Upper Demerara- Berbice). This project is being funded through the Caribbean Development Bank (CDB) via a US$112 million loan, a grant of £50 million (US$66 million) from the United Kingdom’s Caribbean Infrastructure Partnership Fund (UKCIF), and an input of US$12 million from the Guyana Government.
That was the largest grant Guyana has ever received from the British Government.
Phase Two of this project will see the all-weather road being extended to Lethem in Region Nine (Upper Takutu-Upper Essequibo).
Currently, this road network is being utilised by an estimated 50,000 travellers who transport goods from the coast to the inland regions of Guyana and even into neighbouring Brazil.
Guyana and Brazil are presently exploring financing options for that section of the road that will also serve as a critical transport link for the two countries.
According to the British High Commissioner to Guyana, “The [Linden-to-Mabura Hill] Road is making big progress… So, again, this UK Export Finance is available for using on that road and we’re have been taking to government about particular businesses that could actually provide that technical support, that infrastructure support. So, yes, there are ongoing discussions.”
The Linden-to-Mabura Hill road, which started last year and is slated for completion in July 2025, is less than 50 per cent completed with weather and procurement challenges causing major setbacks.
Back in August, Public Works Minister Juan Edghill had told this newspaper that the contractor, Brazilian Company Construtora Queiroz Galvao SA, had lost 72 per cent of construction time due to procurement challenges.
Meanwhile, the increase of the Market Risk Appetite (MRA) to £2.1 billion back in February now paves the way for the Government and the Private Sector to access competitive, long-term financing for national priority projects ranging from infrastructure, healthcare, education and transport.
In August, His Majesty’s Trade Commissioner (HMTC) for Latin America and the Caribbean, Jonathan Knott, led a delegation to Guyana. According to a statement from the British High Commission, during engagements with President Dr Irfaan Ali, they discussed business proposals from British companies that are currently being considered by the Guyana Government.
Moreover, it was noted in the missive that the UK delegation also engaged the British Chamber of Commerce; Private Sector Commission (PSC); Georgetown Chamber of Commerce & Industry (GCCI); Guyana Manufacturing & Services Association (GMSA) and the Women’s Chamber of Commerce along with several other local business-support organisations to discuss opportunities for improved commercial relations and access to finance through UKEF to support projects in Guyana.
According to High Commissioner Miller, there are several proposals already being considered under the UKEF mechanism.
“We have a number of proposals that we’re looking at, at the moment… We have one major investment, that’s the [Guyana Paediatric and Maternal Hospital] at Ogle and there many other opportunities we’re discussing at the moment, both with the Private Sector and with Government… Nothing else is being announced, but we have a number of them that we’re discussing at the moment,” the British diplomat related.
Significant progress has been made at the Guyana Paediatric and Maternal Hospital at Ogle, East Coast Demerara, which is expected to revolutionise healthcare in Guyana. This marks Guyana’s first project to be financed by the UK’s export credit agency.
The UK-funded $31.9 billion facility is being built by VAMED Engineering and is on track for completion by the final quarter of 2025.
The Paediatric and Maternal Hospital will be a referral centre for women and children. It will specialise in maternal, neonatal, and paediatric care with a huge imaging suite for services such as CT scans, X-rays, MRI scanning equipment, a modern laboratory, and surgical suites.
The facility will also have 256 beds and high-quality equipment sourced from the United Kingdom.
According to Health Minister, Dr Frank Anthony, the hospital support systems are being put in place by Government to reduce Guyana’s morbidity rate, have fewer diseases and be able to treat diseases properly.
The Paediatric and Maternal Hospital was birthed from a Memorandum of Understanding (MoU) between Guyana and Austria. While the agreement had catered for another set of works, the People’s Progressive Party/Civic (PPP/C) Government had amendments for the construction of this facility after entering office.
