Guyana is not a signatory to the WTO agreement on government procurement.  Government procurement is generally by public tender.  The Procurement Act of 2003 established a National Procurement and Tender Administration (NPTA), the members of which are appointed by the Minister of Finance.  The Constitution of Guyana provides for a Public Procurement Commission, which oversees the NPTA and ensures that goods and services procured in the execution of public works are done so in a transparent, competitive, and cost-effective manner.  Guyana currently has a functioning Public Procurement Commission.  Government tenders are routinely put forward for services, works, and supplies.  Notices are published in the government-owned Guyana Chronicle and other local newspapers.  They are also posted on the National Procurement and Tender Administration website at https://www.npta.gov.gy/.  Tenders generally have short bidding periods, which are often extended, and scope may change for the project.  Tender specifications are not incredibly specific, allowing most bidders to qualify for the tender and the lowest price to win, as opposed to a mix of lowest price and highest quality. 

The GoG maintains significant direct involvement in the economy (over 50 percent of total spending is government funded), while many publicly managed projects are financed by international agencies, creating substantial procurement opportunities in Guyana.  Opportunities exist for U.S. companies to bid on government projects financed by international lending institutions, such as the Inter-American Development Bank.

Potential Opportunities for US exporters to the GoG includes energy, healthcare solutions, agricultural products and equipment, business services, and infrastructure.  

Competitive Factors: The GoG continues to show a preference for lowest cost bidders without regard to project lifecycle costs.    U.S. exporters are encouraged to have a local presence, as they are key in verifying and validating that bid are properly submitted and registered.  Government tenders are announced through local newspapers and the NPTA website.  U.S. exporters continue to register concerns on the transparency of the public procurement process noting bids properly submitted were not registered.

U.S. companies bidding on government tenders may qualify for U.S. Government advocacy.  A unit of the U.S. Commerce Department’s International Trade Administration, the Advocacy Center, coordinates U.S. Government interagency advocacy efforts on behalf of U.S. exporters bidding on public sector contracts with international governments and government agencies.  The Advocacy Center works closely with our network of the U.S. Commercial Service worldwide and inter-agency partners to ensure that exporters of U.S. products and services have the best possible chance of winning government contracts.        Advocacy assistance can take many forms but often involves the U.S. Embassy or other U.S. Government agencies expressing support for the U.S. bidders directly to the foreign government. Consult Advocacy for Foreign Government Contracts for additional information.”

Financing of Projects

The GoG is actively exploring different project financing models for its priority infrastructure, energy, and agricultural projects.  Several major projects were delayed by issues with financing and project models.

Historically, international and multilateral financial institutions have funded most large public and government projects.  The Inter-American Development Bank (IDB) is the largest multilateral creditor to the GoG, primarily in infrastructure rehabilitation and expansion.  Guyana’s stock of external debt increased by 5.4 percent in 2021 to $1,393 million.  Disbursements from the IDB rose to 108 million in 2021 an increase of 86 million over the previous year accounting for 86.5 percent of total disbursements.

Guyana’s Foreign Exchange Act requires special approval for local financing.  Foreign borrowers applying for a loan of over USD 10,000 (approximately GYD two million) must request permission from the Minister of Finance to take out the loan locally.  This requirement reflects Guyana’s preference for foreign investors to bring capital into the country.  In practice, foreign investors typically seek credit abroad to avoid Guyana’s high interest rates.  The average prime lending rate for Guyanese commercial banks at the end of December 2021 was 8.88 percent.

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U.S. Banks and Local Correspondent Banks: U.S. exporters are encouraged to engage with the EXIM Bank. The Bank of Guyana regulates the local banking sector.