Noting that the government will continue to invest heavily in construction projects across all areas, it is anticipated that the construction sector will expand by 10.5% this year.
“Government is committed to filling the substantial infrastructural gaps that exist across our nation. In 2022, we will continue to invest heavily in construction projects across all sectors, alongside major projects coming from private sector investment initiatives. As a result, we project 10.5 percent growth in the construction sector in 2022, on top of the growth observed in the sector last year,” Finance Minister Dr Ashni Singh detailed in his Budget 2022 Presentation.
The construction sector grew by 29.8% last year, when compared with 2020.
“Investment in critical infrastructural projects by the public and private sectors is driving, and will continue to drive, significant growth in construction activity. Current estimates show that the construction sector grew by 29.8 percent when compared with 2020, underpinned by both the major public infrastructure buildout that is currently underway, as well as increased private sector activity in industrial, commercial, and residential construction,” the Finance Minister had explained.
Dr Singh had also explained that with the construction boom underway, particularly pertaining to the rapid expansion in housing and road projects, the development and expansion of the other mining and quarrying subsector is crucial.
“This expansion has the potential of lowering construction costs since the abundance of local, readily available resources could ease the impact of imported inflationary pressure on the cost of key construction materials,” he noted.
In 2021, there were five new permits granted for sand and loam that cover some 525 acres. The acreage of the plots ranges from 25 to 283 acres and production is expected to expand significantly in 2022 and beyond.
Critically, 2022 will see attention focused on ensuring beneficial occupation of sand-bearing properties along the Soesdyke-Linden Highway.
On quarry production, the Finance Minister said private investment in the sector will bring significant growth in output in 2022. Currently, there are seven active stone quarries, three in Mazaruni, two in Essequibo and one each in the Corentyne River and Northwest District.
In 2021, 11 quarry licences were issued to new applicants, covering 30,737 acres with each having a productive capacity of 150,000-200,000 metric tonnes per year. Most of the new quarries are anticipated to come on stream by the end of 2022.
