Casually dressed in a Mohamed Ali tee-shirt with the word “Boss” emblazoned on it, President Mohammed Irfaan Ali on Sunday night addressed the nation from State House and defended his Government’s move to fast-track several public infrastructure projects.

The Government has been facing some criticism over the poor finishing and lengthy delays for many major public infrastructure projects, but the President has pointed out that the projects have been increasing economic activity in the country and creating jobs.

The President’s statement came a day after former Finance Minister, Winston Jordan in a Demerara Waves article, questioned the Government’s infrastructure push, while suggesting that the country stands to lose hundreds of millions of dollars from those projects. Mr. Jordan said some of the monies being spent on projects that may not be necessary at this time, could be used to increase the salaries of public servants.

But in response, the President noted that building out the country’s infrastructure at this time is much needed.

“Without investment in physical infrastructure, it would not be possible to improve the country’s international competitiveness or the barriers to private sector development and economic growth. If we don’t do this, how are we going to improve our international competitiveness and get rid of the barriers to private sector development and economic growth,” the President questioned.

The President quoted an IDB report which suggested that a deficient transportation network can stifle economic opportunities in every sector.

The IDB had also estimated that the country will have to invest between US$9B and US$23B by 2030 to upgrade the transportation network, expand the country’s energy grid, and improve water and sanitation facilities, among other main projects.

“By investing in infrastructure, by having this capital expenditure, investing in infrastructure, this PPP government is also providing skilled, semi-skilled and unskilled citizens with high paying employment opportunities, look at what is happening in the construction sector, the housing sector and look at all the new hotels as a result of the investment we are making” the President stated.

The President said the country’s public infrastructure profile is about creating wealth, expanding opportunities and creating the multiplier effect and catalyzing economic activity.

“It is also known that capital expenditure, public investment has played an important role in catalysing economic growth in Guyana since it has a multiplier effect. The backward and forward linkages of the construction sector, creates a ripple effect throughout the economy that persists for many years,’ the President.

The President said economic activities are boosted when the Government increases its spending in public projects.

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