22 million US dollar loan has been signed between IDB Invest and Guyanese firm Demerara Distillers Limited (DDL), one of the main economic groups in Guyana, to expand its production capacity of juice and milk.
According to a statement, this loan will also finance the construction of a 3.25 MW solar photovoltaic (PV) energy generation system with battery storage, to supply its plants with electricity.
The financing supports DDL’s growth strategy through productivity increase and diversification beyond rum production to incorporate new and healthier products produced locally, such as milk and fruit juices.
At the same time, the transaction strengthens the local supply chain of small and medium enterprises (SME) fruit and vegetable producers, increasing the purchases and the number of farmers that supply DDL.
The financing also contributes to climate change mitigation by helping the company reduce its carbon footprint through financing and technical assistance. IDB Invest is financing the replacement of current imported fossil fuel sources, such as diesel, with renewable energy.
IDB Invest is also providing DDL technical assistance to develop and implement the solar PV energy generation and storage system, and to promote the adoption of energy efficiency measures.
The support is aligned with the Caribbean Community (CARICOM) “Vision 25 by 25” which calls for the reduction of the region’s food import bill by 25 per cent by 2025.
