Financing deal signed for India-made planes for GDF

Last Updated on Saturday, 16 March 2024, 7:26 by Denis Chabrol

The Guyana Defence Force (GDF) would soon acquire two new aircraft from India with a US$23.27 million loan from India’s Export-Import Bank of India (EXIM Bank), according to the Finance Ministry.

The financing agreement was signed on Friday by Finance Minister Dr Ashni Singh and Deputy General Manager of EXIMBANK, Sanjay Lamba.

“This agreement represents the latest instalment of the Government’s ongoing effort to ramp up the capabilities of the GDF, and has its genesis in President Ali’s visit to India’s state-owned aerospace and defence company – Hindustan Aeronautics Limited, in January 2023,” the Finance Ministry said.

Though the Finance Ministry did not name the aircraft on Friday, back in 2023  government had eyed the purchase of two HAL (Dornier) 228 planes from Hindustan Aeronautics Limited. The HAL 228 planes are said to be ideal for Short Take-Off and Landing (STOL) for Guyana’s terrain and would be used for maritime patrols as well as, resupply of military bases, troop movement to interior locations.

In reiterating Government’s commitment to bolstering the country’s security sector, the Finance Minister explained that the Government is investing heavily in strengthening the capabilities of the GDF, in particular, in some of its specialised wings, such as the Air Corps and the Coast Guard. He further said that the purchase of the two aircraft is part of the biggest ever investment in the capitalisation of the force thus far.

Dr. Singh also used the opportunity to thank Mr. Lamba and team for the Bank’s tremendous efforts in concluding the LOC, and acknowledged the efforts of everyone else who contributed, including High Commissioner Dr. Telang and team from the Indian High Commission, Chief of Staff of the GDF, Brigadier Omar Khan and team, and Chief Planning Officer, Dr. Tarachand Balgobin, and other technical staff of the Ministry of Finance.

High Commissioner of India to Guyana, Dr. Amit Telang said the Line of Credit (LOC) Agreement is the first ever defence LOC signed with the Caribbean region.

The Finance Ministry said the Chief of Staff of the GDF, Brigadier Omar Khan, while speaking on behalf of the defence sector, recognised role that the Government of India has played in defence training over decades in Guyana and noted that today’s signing is in keeping with President Ali’s vision of a strengthened security sector that will help to maintain the peace and prosperity for One Guyana.

With the signing of today’s LOC Agreement, the Government of Guyana to date, has received eleven (11) LOCs from the Indian EXIM Bank over the years.

Guyana and India established diplomatic relations on May 26, 1966, and continue to have a robust developmental cooperation programme aimed towards the mutual benefit of both countries.