US$100M India loan to help buy vessel to protect EEZ

Nov 24, 2023 ExxonMobil, News, Oil & Gas

By Shervin Belgrave

Kaieteur News – Guyana will be using a portion of US$100M line of credit from India to purchase another vessel for the Guyana Defence Force (GDF), Vice President, Bharrat Jagdeo told Kaieteur News on Thursday.

The vice-president clarified that the vessel to be procured is not to fight war but to protect Guyana Exclusive Economic Zone (EEZ). He had told reporters at a press conference held at the Office of the President that Guyana has already spent tens of millions of US dollars to enhance the capabilities of GDF. “Each of those helicopters that we have now ,I don’t wanna speak about this publicly, but it cost us a significant amount of money, Jagdeo said before adding “and we now even with India there is a line of credit for a US$100M dollars, that we are pursuing additional vessels”.

Vice President, Dr. Bharrat Jagdeo

The VP made it clear to the reporters, that the vessels are not for war but to build the GDF’s capabilities and defend Guyana’s Exclusive Economic Zone. Jagdeo disclosed this information after a reporter asked what steps Guyana will take to protect itself if Venezuela decides to take any action following its referendum on December 3, 2023 to unlawfully claim the Essequibo.

Jagdeo while explaining to the media that Guyana has a combined capability to deal with such an issue if Venezuela “miscalculates,” also addressed criticisms that Guyana has not done enough boost up its military capacity since the production of oil. He said that the fact is that Guyana is not getting “a lot of money from its oil resources now”.

Jagdeo continued that for the first two years of production Guyana only received US$650M while only US$1B “came into this year’s budget”.

The next generation 115 Defiant Offshore Patrol Vessel (OPV), purchased by Guyana

Out of the 2023 budget, Guyana used some money to pay off for a vessel it had bought for US$11.5M from an American company called Metal Shark Boats.

The Government has been paying for the boat- “next generation” 115 Defiant Offshore Patrol Vessel (OPV) – since 2021 by setting aside funds from its yearly budgets that are heavily supported by oil revenues from the Stabroek Oil Block offshore Guyana.

On Monday October 30, Metal Shark Boats, the American company that Guyana paid to build the vessel said that the boat is completed and has departed its Louisiana production facility in the United States of the American (USA) for its Bayou La Batre, Alabama shipyard.

“From there, the vessel will continue its journey to Guyana, where it will join eight other Metal Shark patrol boats currently in service with the GDF”, Metal Shark Boats stated.

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

Army boat, capabilities, Guyana Defence Force, Jagdeo, US$100M line of credit from India

Latest News