Local Development News

Government Initiative Stabilizes Aggregate Supply Amid Infrastructure Boom

by Nakasia Logan

Guyana faced a critical challenge in 2022 as soaring prices and shortages of essential construction aggregates threatened infrastructure projects crucial for economic growth.

Responding decisively, the Ministry of Public Works implemented strategic interventions to stabilize the market and ensure supply transparency.

The surge in demand driven by national development initiatives led to a doubling of aggregate prices, prompting urgent government action.

Throughout 2022, the ministry engaged local providers and new quarry operators to assess capabilities and logistical challenges.

By November 2022, with aggregate needs projected to exceed 3.2 million metric tons by 2024, the government conducted a Public Tendering exercise securing 300,000 tons from multiple bidders.

To bridge the deficit of 1.1 million tons, a single-source procurement method was employed, reducing costs from $16,000 to $11,500 per ton.

Anticipating sustained demand, a subsequent Public Tendering exercise in March 2023 secured contracts for an additional 400,000 tons, complemented by 485,000 tons through the Single Source Method.

These initiatives ensured 35% of the nation’s aggregate needs were met by governmental efforts, supporting both infrastructure projects and private sector growth.

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