Capital spending to remain “fairly high” – Jagdeo

Jul 21, 2025 News

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…$1.81 trillion spent since 2023

…says other hospitals, schools and roads need to be built

Kaieteur News – With over $1.81 trillion spent on capital expenditure since 2023 driven by the Irfaan Ali-led administration’s heavy investment in infrastructure such as schools, roads, health facilities, and other key projects, General Secretary of the People’s Progressive Party/Civic (PPP/C), Bharrat Jagdeo, has stated that capital spending under the next PPP government will remain “fairly high” despite the completion of several projects, as new ones are expected to be added.
Capital expenditure refers to government spending on long-term investments like roads, schools, and other infrastructure.

Last Thursday at his press conference at Freedom House, Jagdeo was asked if 2027-2028 is still a reasonable timeline for a reduction in capital spending, given the scale up of spending over the years. He highlighted that though several major infrastructural projects are completed and some near completion, other projects will be added.

Jagdeo said, “So I think we may, given the ambitious programme, we may still see a fairly high degree of capital spending, but it will be on the new things, because these will come off the books.”

He went on to highlight the plans the PPP has for its next term in office including more schools, hospitals and roads. Jagdeo noted that once those other projects are completed, there will be a reduction in capital spending. Jagdeo stated, “You’ll see a reduction, but once we complete those, then you can see [a] vast drop off in capital spending, because the infrastructure is built already.”

Notably, for 2025, the government allocated a total of $737.6 billion to capital expenditure, representing more than half of the $1.382 trillion national budget. This year’s capital expenditure marks an increase from the revised $646 billion in 2024, and significantly higher than the $421.8 billion spent in 2023.

Roads

The PPP administration has spent heavily on Guyana’s road network. Some notable projects include the US$65 million Heroes Highway, the $15.1 billion Schoonord to Crane four-lane road, the US$133.8 million Ogle to Eccles four-lane highway, and the US$192 million East Coast road project.

“At some stage, we will complete the road network that we’re planning to build… the roads are built, the highways are built. So you’d see that dropping off from the budget. So we just need to move on,” he noted.

He reiterated plans for the Region Two Essequibo Coast road, which will involve widening the over 38-mile Road from Supenaam to Charity. Jagdeo added that the PPP plans to have a four-lane road network from Parika to the New Demerara River Bridge. He noted that this will be done, as well as the completion of a four-lane highway to the Cheddi Jagan International Airport (CJIA) located in Timehri.

He spoke about completing the East Coast to Mahaica road project and the possibility of widening the road from Annandale to Mahaica. Jagdeo also mentioned the awarding of contracts for a four-lane road from Mahaica to Rosignol, as well as a four-lane road from New Amsterdam to Molsen Creek, near the border with Suriname. “So that’s already awarded,” he noted.

He added that there are additional roads the PPP plans to develop, but these are mostly upgrade roads, such as those along the banks of the river to open up more land.

Jagdeo noted several new corridors are under consideration. He said they are focused on connectivity from various remote areas including Molsen Creek, Aishalton, Goshen, Bartica, Mabaruma, and extending the Linden to Mabura road to the border with Brazil. “I don’t want to get into many details,” he said.
“From Mabura to the border, looking at it, probably in the first phase, a crusher run surface that can handle the heavy traffic, because the traffic is really, really heavy coming out from these areas now and then later, paving it so. So that road that would allow major shifts in settlement patterns, in economic activities, a whole range of things,” Jagdeo noted.

Hospitals

Further, Jagdeo explained that despite the government embarking on completing the construction of 12 new state-of-the-art regional hospitals in Regions One, Two, Three, Four, Five, Six, Eight, and Nine, there are still existing facilities that require upgrades or reconstruction. The government inked contracts for a $4.4 billion hospital at Moruca, an $11.4 billion hospital at West Demerara, a $6.6 billion hospital at Diamond, a $6.6 billion hospital at Lima Sands, and a $5.4 billion hospital for Kato, among others.

Jagdeo pointed to the Georgetown Public Hospital, Linden and Bartica hospitals, as additional facilities earmarked for improvement. As it relates to the Georgetown Public Hospital, he stressed the importance of having a high-quality facility in the city, outlining that the PPP plans to transform it into a modern hospital with landscaped surroundings. “So that’s a new one we have to do. It got to start happening. Then we have to rehabilitate Linden, Bartica possibly a new hospital there too, but not a large hospital. And because catering for that, West Demerara has to be rehabilitated. So the others, we have to rehabilitate. So that’s the additional capital expenditure I’m talking about there,” he explained.

Schools

The general secretary went on to highlight that with about 100 school contracts awarded over the past five years, there is still a need for additional schools. Some contracts awarded over the years include the $296 million Houston Secondary School, $2 billion Kwebanna Secondary School, $864 million Tuschen Secondary School and $940 million Christ Church Secondary School. Jagdeo said, “We’d have to upgrade the others, I don’t think those will cost as much as the initial outlay.”

Bridges

On the subject of bridges, he noted that the government is nearing completion of the national bridge network. By year end, he said, all of the bridges including the four-lane Linden Bridge, except Kurupukari will be completed. “So clearly, when you finish that, your capital programme for those will decrease significantly… So clearly, if you build a bridge, then you don’t have to build back that bridge again,” he added. Jagdeo also noted that the new Berbice River Bridge will be completed in the next term.

“So we are thinking about, within another five years, you would see a whole slew of modern infrastructure services to the people of the country, more jobs, more opportunities,” Jagdeo noted.

Notably, he mentioned that if oil prices remain stable, Guyana would be able to fund more of its development agenda using the country’s own resources. Over the years, several major projects were funded through loans.

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• Bharrat Jagdeo, Capital spending, Christ Church Secondary School, Diamond Hospital, Ogle to Eccles

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