Saudi Fund signs 2 development loan deals to support various areas in Guyana

By Shilpa Annie Joseph, Official Reporter
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Saudi Fund signs development loan deals
Officials during the signing ceremony | Courtesy: SFD

Saudi Fund for Development’s (SFD) CEO Mr. Sultan bin Abdulrahman Al-Marshad, has signed two development loan agreements worth $150 million with the Guyana Minister of Finance Hon. Dr. Ashni Singh in order to support the housing and transportation sectors in the Cooperative Republic of Guyana.

The deals intend to fund the “Infrastructural Development Works for the Housing Sector Project”, and the “Construction of Wismar Bridge Project”.

The development cooperation emphasizes the Kingdom’s commitment to supporting Small Island Developing States (SIDS) to overcome sustainable development and climate change challenges. Furthermore, the agreements reaffirm the importance of international cooperation and solidarity to achieve sustainable development goals and foster economic and social growth, particularly in SIDS.

Sultan Al-Marshad_SFD signs contribution agreement with Global Fund
Sultan Al-Marshad

“The two agreements signed aim to support the housing and transportation infrastructure sectors in the country, which will lead to major benefits in health, education, and the standard of living. Both of these infrastructure projects will support access to vital services, and represent an essential drive for achieving seven United Nations Sustainable Development Goals (SDGs), particularly SDG 3, Good Health and Wellbeing, SDG 6, Clean Water and Sanitation, and SDG 11, Sustainable Cities and Communities.”

The first loan agreement, worth $100 million, is for the Infrastructural Development Works for the Housing Sector Project. It aims to respond to the growing population demands by developing the infrastructure to provide about 2,500 housing units across three different regions in Guyana.

Further, the project includes paving the main and secondary roads, establishing water, sewage, and electricity networks, digging wells for each of the project areas, and constructing social facilities serving multiple benefits.

As per the statement, “It will not only address the current housing shortage and improve living conditions but also stimulate the local economy through direct and indirect job opportunities in the housing sectors.”

The second loan agreement, worth $50 million, for the Construction of the Wismar Bridge Project, aims to build a four-lane bridge parallel to the existing Mackenzie-Wismar Bridge, to improve road network connectivity and the flow of transportation, relieving traffic jams, and enhancing road safety.

“The bridge will also link to the existing road network on both sides of the Demerara River, ensuring easier access to nearby public facilities such as Mackenzie Hospital, and other government facilities. While positively impacting transportation, the bridge is also expected to contribute towards social and economic development and creating employment opportunities in Guyana,” according to the statement.

Related: Saudi Fund signs 2 loan agreements with Saint Vincent and the Grenadines