“Here is your opportunity” to contribute – Pres Ali tells diaspora on investment

…as Diaspora Bond to launch within a week

Recognising the wealth of resources available within the diaspora, the Guyanese Government will soon roll out an initiative that will see overseas-based Guyanese be given the opportunity to directly participate in the country’s development.

This was announced by President Dr Irfaan Ali on Tuesday evening, where he revealed that the Government is looking to secure funding from within the Guyanese Diaspora for major public projects.

“I want to announce that the Government of Guyana will launch a special bond, a diaspora bond, to raise funds from the diaspora for investment in public infrastructure projects in Guyana. So, within one week, we’ll be launching the diaspora bond,” the Head of State declared.

He added, “So, members of the diaspora, here is your opportunity to make your contribution and to be part of the massive transformation taking place in our country.” The Guyanese Government has long been looking to unlock financing within the diaspora to drive a number of large-scale national projects, with President Ali only recently promising strong returns on those investments.

During a recent armchair discussion at the Baker Institute for Public Policy, an American think tank housed on the campus of Rice University in Houston, Texas, the Guyanese leader noted that his government is creating attractive investment opportunities for the diaspora to capitalise on.

“Our diaspora is in a special and unique position… But now I think [we have to look at] how do we unlock their financing? How do we create opportunities for their investments, and I think that is what is exciting for them. And we are on a path of launching a few important projects of national importance for national security that we believe they could invest in with a very good return,” the President noted during the event held earlier this month.

EoIs for major projects

Those remarks came just weeks after the Guyanese Government issued a preliminary call for investors to support two major projects in the country – the cooking gas bottling plant and fertiliser facility, which will utilise natural gas that will be brought onshore via the Gas-to-Energy (GtE) Phase Two Project at Wales, West Bank, Demerara.

In the invite for Preliminary Expressions of Interest (EoIs), the Government made it clear that preference will be given to Guyanese investors, including those in the diaspora, to be part of the entities that would be set up for these energy projects.

This is in keeping with previous commitments by the Government to ensure that Guyanese citizens, both here and abroad, have a stake in major projects and actively participate in the country’s development.

For the Guyana Ammonia and Urea Plant Inc (GAUP), which is pegged at US$300 million, the Government is targeting investments with a cap of US$5 million per investor.

Additionally, the Guyana Gas Bottling and Logistics Company Inc (GGBLC), which is estimated at US$40 million, has a cap of US$1 million per investor. However, it was noted that interested parties may indicate the maximum amounts they are willing to invest for both projects.

According to the EoI invite, which has since closed off, investors can assume a government guarantee of a 10 per cent annual return on both projects. Moreover, both GAUP and GGBLC will be private companies and not publicly traded entities.

It was further explained that this is only a preliminary expression of interest. Based on the response, the Government will then structure appropriate details of the investment and make a formal call for investments.

Silica City

Meanwhile, days after his comments in Houston, President Ali encouraged members of the diaspora to explore investing in vacation homes in Guyana’s model smart and sustainable city along the Soesdyke-Linden Highway, Silica City.

“In that city, modernity will meet tradition. And tradition will be an envelope in the environment. It is designed to be a city of sustainability, a city of wellness, a city of the future… And we want at least 25 per cent of this city to be dedicated to meeting the needs of the diaspora,” he posited while addressing the Guyanese diaspora in Canada during an engagement at the Pearson Centre in Brampton, Ontario.

Showing a promotional video depicting the layout and design of Silica City, the Guyanese leader contended that, “Visuals give you a better understanding of what we are planning… I want you to see what the city will look like so that those of you who want to own your vacation home, own your second home, or invest in your home in Guyana can be part of Silica City… Here is your opportunity.”

Located approximately 40 kilometres (km) from Georgetown and 5km from the Cheddi Jagan International Airport (CJIA), Silica City is designed as a climate-resilient urban ecosystem that integrates innovation, nature, and smart technology.

Silica City was initially conceived in 2009 by Ali during his tenure as Housing Minister. The Government has since set aside some 3800 acres of land for the new city, with approximately 15,000 houses to be constructed in various phases over the next two decades. In its first five years, the city is expected to cater to just over 3000 households.

Phase One of Silica City involves significant infrastructure development alongside the construction of over 3000 houses – all to the tune of some $1.2 billion. Already, construction works are ongoing for the first 110 Young Professional houses under this first phase. These houses comprise four designs, with prices ranging between $27 million and $35 million.

Phase Two of Silica City, which Guyana is working with a Saudi Arabian company on, caters to the development of over 374 lots that will have various aspects of construction, including a retirement resort, a healthcare hub, and sports tourism facilities. This aspect of the project will target the Guyanese diaspora, including investment opportunities.