Parliament approves $2.1B to build Wismar Bridge despite Govt. taking US$35M Saudi loan under same project name

Aug 14, 2023 News

---

Kaieteur News – The National Assembly last week approved $2.1 Billion to construct the Wismar Bridge- a project the government had taken a US$35M Saudi Arabia loan under the same project title. The project falls under the Ministry of Public Works.

During last week’s debate, before the $61 Billion supplementary budget was approved by the House, the Wismar project faced scrutiny from Opposition Member of Parliament, Annette Ferguson, as she correctly recalled a loan was signed under the said project name.
The project was presented to the House by Minister of Public Works, Juan Edghill, under the name, “Provision of additional resources to facilitate the construction of the Wismar Bridge” for the sum of $2,104,546,800.

This prompted the Opposition MP to question the reason behind the Government seeking supplementary funds for a project that a loan was signed for.
While Minister Edghill was unable to explain the reason behind the loan and the supplementary funding being under the same name, he stated that the bridge will be built with local funds.
The minister’s response raised questions, given that on June 5, 2023, the Ministry of Finance reported, “In the presence of H.E. President of the Co-operative Republic of Guyana, Dr. Mohamed Irfan Ali, Senior Finance Minister, Dr. Ashni K. Singh today signed two development loan agreements worth US$150 million with the Saudi Fund for Development’s (SD), Chief Executive Officer, H.E. Sultan Al-Marshad, to fund the “Infrastructural Development Works for the Housing Sector Project”, and the Construction of Wismar Bridge Project”, through SFD.”

During a June press conference, Vice President (VP), Dr. Bharrat Jagdeo disclosed the construction of the new four-lane bridge across the Demerara River in Wismar, Linden, Region 10 and is expected to commence before the end of this year. This was reported by the Department of Public Information (DPI).

The State media entity reported, “The bridge is expected to cost some US$35 million and will connect Wismar to Mackenzie. The bridge is set to significantly reduce traffic congestion, as the current bridge only has one vehicle lane. The government is engaging China Railway Construction Limited for the project.”

Notably, hours after Minister Edghill was questioned, MP Ferguson addressed the House. She said, “Allow me to draw the house’s attention in regards to the loan for the Wismar Bridge…”
“Earlier when we were considering the supplemental for the Ministry of Public Works, under the Wismar Bridge, the question I asked was whether there was funding from any foreign company and the Minister was unsure, so I have the information before me here…My question is to clarify whether the Wismar Bridge will be funded by the Saudi Loan, what monies will go towards the financing of the Wismar Bridge by this particular loan,” MP Ferguson highlighted.

In response, Minister of Finance, Dr. Ashni Singh explained that at the time the MP made the querym he was attending to state matters.
He continued, “There is no great mystery surrounding this matter. The honorable member correctly recalled loan agreements totalling US$150M with Saudi Fund was signed and the agreements were tabled, and the language in and surrounding the financing agreement did make mention to both housing developments and the Wismar bridge, all of it is factually correct. Let me just point out that the Wismar Bridge project comprises of not only the actual construction of the bridge itself but associated civil works as well including access roads, Minister of Public Works would be better to describe the civil works in detail, but I am aware that access roads have to be built on both sides in addition the actual construction of the bridge and associated works to support the construction of that new bridge.”

He further noted, “We are in fact in the process of negotiating and concluding a contract with the EPC contractor for the actual construction of the bridge and the honorable member minister Edghill was correct in saying that the actual civil contract in connection with the construction of the bridge we anticipate being financed out of local resources, hence the supplementary provision being sought.”

Furthermore, the minister highlighted that they are ancillary works that will be needed including the access roads and supportive infrastructure.
“I want to say too, we want to move forward as quickly as possible with the commencement and completion of this project so that is the reason we are moving with the alacrity. We have identified a top ranked international company; just commenced the process of discussions with that company with the view to conclude a contract with them so there is no great mystery here,” Dr Singh said.

---

• Annette Ferguson, Construction, Dr Ashni K. Singh, Juan Edghill, Minister of Public Works, Opposition Member of Parliament, Saudi loan, Senior Finance Minister, Wismar Bridge

---