IDB Invest inks U.S.-multi-million loans with private sector companies

Feb 25, 2024 News

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Kaieteur News – In a significant move to bolster Guyana’s private sector and advance key industries, IDB Invest, the private sector arm of the Inter-American Development Bank (IDB) Group, signed three operations with companies in Guyana for financing in the logistics sector, tertiary education and sustainable tourism.

The signings, presided over by IDB Invest, Chief Executive Officer (CEO) James Scriven, mark a pivotal moment in Guyana’s journey towards enhancing infrastructure, human capital, and sustainable practices across various sectors. Scriven signed the agreements with representatives of Texila American University Guyana, Republic Bank, Muneshwers Limited, Guyana Bank for Trade and Industry and Caribbean Green Building.

IDB Invest has joined forces with Guyana Bank for Trade and Industry Limited (GBTI) to provide Muneshwers Limited, a leading transport and logistics company in Guyana, with a substantial financing package totaling US$14 million.

The agreement is to facilitate two new multipurpose cargo cranes and a new logistics warehouse to help increase the port terminal’s processing capacity. The financing consists of a senior loan of US$10 million from IDB Invest and US$4 million from GBTI.

The project is located at the Port of Georgetown and will increase trade flows by helping Muneshwers increase the cargo handling capacity from the 30,000 20-foot equivalent unit containers per year to almost double the capacity in 2025. The improvement of the port infrastructure will also support port productivity by increasing berth movements for cargo from different parts of the world including Suriname, Trinidad, Colombia, and Panama. In 2022, IDB Invest provided a US$4 million loan for the company to acquire its first mobile harbor crane.

IDB Invest will also support Muneshwers to improve its sustainability and energy efficiency through technical and economic feasibility studies to implement a photovoltaic solar system on rooftops, and for energy storage to increase its resiliency.

Muneshwers is also implementing a Corporate Governance Action Plan to raise its standards and incorporate best practices at board and management level.

IDB Invest and Republic Bank Guyana Limited partnered with Texila American University (TAU) to expand the university’s campus with new housing facilities for staff and students. The US$9 million financing package includes a senior loan of US$5 million from IDB Invest and US$4 million from Republic Bank.

The project is expected to contribute to an increased student enrollment of almost 73% by 2026 and a 20% increase in the number of graduated students by the same year. This will positively contribute to the human capital development of Guyana focusing on quality education.

New student housing will provide more affordable campus accommodations and include 86 two-room apartments and 16 one-room apartments. The staff housing will cater for 30 families of Texila’s staff.

With IDB Invest support, TAU will strengthen its environmental and social practices by implementing an Environmental and Social Action Plan to enhance its capacity to manage risks and impacts associated with existing operations and the planned expansion.

Additionally, IDB Invest has partnered with Caribbean Green Building to provide US$22 million to develop a sustainable mixed-use tourism project in Georgetown, Guyana, consisting of a 172-room Four Points by Sheraton Hotel, and accompanying conference facility and retail facilities.

The project is expected to contribute to Guyana’s economic development by generating tourism revenue, creating more than 150 jobs during construction and over 60 jobs during operations, and strengthening the local value chain.

The hotel’s design features a large solar roof footprint to address the energy requirements of the property and contemplates an expansion of the renewable energy platform once the covered parking lot is completed. The Four Points Georgetown is anticipated to be the first EDGE Advanced-certified hotel in Guyana and potentially the first EDGE Zero Carbon-certified hotel in Latin America and the Caribbean.

IDB Invest financial package includes a senior loan of US$11 million and US$7 million mobilized from First Citizens Bank and Finabank. In addition, the financing will be complemented by a US$4 million senior loan from the Canadian Climate Fund for the Private Sector in the Americas-Phase II (C2F2) to provide financing and performance-based incentives to implement climate resilience, transition risk, and enhanced climate mitigation strategies.

IDB Invest involvement in this flagship mixed-used project, which blends multiple uses such as commercial and cultural in one space, is to help catalyze similar climate-resilient initiatives in the hospitality sector and incentivize the private sector to develop responsible sustainable tourism projects in the country, setting the tone and direction for this rapidly expanding sector in Guyana.

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• education, Guyana, IDB, invest, loan, Tourism

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