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.  Government tenders are routinely put forward for services, work, 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.  Tenders generally have short bidding periods; however, many are often extended with changes to the project scope.  Tender specifications can be general, 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 U.S. 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, with some exceptions. U.S. exporters are encouraged to have a local presence, as they are key in verifying and validating that bid is properly submitted and registered.  Government tenders are announced through local newspapers and the NPTA website.  U.S. exporters continue to raise concerns on the transparency of the public procurement process noting that at times, properly submitted bids were not registered.

Official U.S. Government Advocacy: 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 offices 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 the Advocacy for Foreign Government Contracts website for additional information.

Financing of Projects

The GoG is 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 rose by 12.9 percent in 2022 to USD 1.5 Billion.

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 2022 was 8.38 percent.

USD$ Million

U.S. Banks and Local Correspondent Banks: Currently, there are no U.S. banks that operate in Guyana.  U.S. exporters are encouraged to engage with the U.S. EXIM Bank for financing options. The Bank of Guyana regulates the local banking sector.