India extends Line of Credit to Guyana; To funds infrastructure projects

The contract which was signed between the two countries in Georgetown at Mile 0 (zero) at Ogle is going to be fulfilled under the concessional Line of Credit of USD 50 extended by the government of India. 

According to the Indian mission in Guyana this contract is set to be inked early next week.

India and Guyana on late Friday evening (June 24, 2022) firmed up a contract for the construction of the Phase 1: East Bank-East Coast Road Linkage Project (Ogle to Haags Bosch, Eccles).

The contract which was signed between the two countries in Georgetown at Mile 0 (zero) at Ogle is going to be fulfilled under the concessional Line of Credit of USD 50 extended by the government of India.  Rail India Technical and Economic Service Limited, (RITES) Ltd., had prepared the detailed project report for this and has awarded the project management consultant contract for around USD 3 million.

According to the Indian mission in Guyana this contract is set to be inked early next week.

Contract Signed

The contract for the construction of the Phase 1 was signed by the Permanent Secretary in the Ministry of Public Works Vladim Persaud and the Director of Ashoka Buildcon Limited Ashish Kataria in the presence of the High Commissioner of India to Guyana Dr KJ Srinivasa, and other top officials.

Among those present included former President Donald Ramotar, Senior Minister in the Office of the President with Responsibility of Finance Dr Ashni Singh, Minister of Public Works Bishop Juan Edghill, Attorney General and Minister of Legal Affairs Mohabir A Nandlall, Minister within the Ministry of Public Works Deodat Indar, Minister within the Ministry of Housing and Water Ms Susan Rodrigues, Chairman of Region 4, Bank of Guyana Governor Gobind Ganga, residents of Ogle area, and others.

In their remarks, ministers like Deodat Indar, Edghill and Ashni Singh emphasized the importance of the road infrastructure project, and acknowledged the hard work put in especially by the High Commissioner of India, EXIM Bank of India and various stakeholders in Guyana.

This road infrastructure project is part of a comprehensive plan of the government of Guyana and will help to realize the development potential of that country.

The top officials of that country also expressed their gratitude to the government of India for extending the Line of Credit and for being a dependable developmental partner.

Remarks of the High Commissioner of India

In his remarks the High Commission of India Dr Srinivasa said that the LOC was approved by India in 2014 during the tenure of former President Dr Donald Ramotar and also called on the Government of Guyana to facilitate the execution of the project by the Indian contractor Ashoka Buildcon Limited. The contractor was selected through a transparent bidding process and Dr Srinivasa expressed hope that the Indian company would be able to execute the project well before time and with the quality specified.

In his address India’s envoy said that the road project was part of government’s development assistance in the form of concessional Lines of Credit worth totally about USD 30.5 billion. India gives this to about 65 other countries.

He also highlighted the developmental cooperation between the two countries in various areas including energy, oil and gas, capacity building, infrastructure, education, and healthcare.

India & Guyana Crude Imports

The Caribbean nation is also set to overtake Brazil as top oil producer in South America. 

Since 2020, India has been making efforts to diversify imports of crude oil from other countries. Guyana has the resources and as reported in Financial Express Online earlier India has purchased around one million barrels of crude oil. And the two sides are in talks to buy more.

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