IDB US$11.6 Million Oil & Gas Loan to Help Gov’t Transform Sector
December 7, 2018
The Government of Guyana has announced in it’s 2019 annual budget allocation, its plan to transition the Oil and Gas sector in Guyana. This plan will receive much-needed support from the Inter-American Development Bank IDB approved US$11.6 Millon to transform the sector.
According to an IDB press release yesterday, this is a policy-based loan that is designed to support the strengthening and the sustainability of the energy sector in Guyana by contributing to the institutional development of oil and gas governance and the development of cleaner energy sources for electricity generation.
The loan will be disbursed in two tranches, the first tranche of US$5.82 Million will come from the IDB’s Ordinary Capital, disburse within two years, with a grace period of 5.5 years, and an interest rate based on LIBOR. The second tranche of US$5.82 Million will come from the IDB’s Concessional Ordinary Capital and will be disbursed within two years, with a grace period of 40 years, and 0.25% interest rate. The executing agency for this loan will be the Ministry of Finance.
In his 2019 budget speech, the Minister of Finance, Mr Jordan, told the National Assembly “as we begin the transition to an oil-producing nation, Government must and will implement prudent structural reforms and fiscal safeguards, strengthen our institutions, prioritise the development of our human capacity, and diversify our growth portfolio.”