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US$96M financing secured to reduce electricity losses, improve 24-hour water supply
Minister of Finance, Dr. Ashni Singh, signed two project agreements in Washington DC,
Minister Ashni Singh and the IDB, Alberto Luis Alberto Moreno sign the historic agreements.
with the Inter-American Development Bank and the European Union, yesterday. The agreements mobilizing a total of US$96 million of development financing to benefit the electricity and water sectors of Guyana.
These projects are also the first to benefit from the European Union’s new Caribbean Investment Facility (CIF).
Signing the agreements alongside Minister Singh was IDB President Luis Alberto Moreno in the presence of European Union Commissioner for Development Andris Piebalgs.
The two projects are the first to be financed as part of the IDB’s new Grant Leverage Mechanism (GLM), under which IDB loan funds are provided to co-finance a project with grants provided by another development partner. In this case, the partner providing the grant is the European Union.
“Guyana considers itself privileged to have been chosen by these two development partners to pioneer these two new financing facilities,” Minister Singh stated, referring to the IDB and the EU.
“We appreciate the vote of confidence reposed in us by this pioneering collaborative effort, and we trust that our experience shapes the efficient and effective functioning of these mechanisms going forward, to the benefit of all other beneficiary countries across the Region,” the Minister added.
Minister Singh saluted the multi-donor involvement in the two projects, and expressed the hope that it becomes a model that recommends itself for replication.
POWER SUPPLY
Under the first agreement, US$64.6M will be provided to finance a Power Utility Upgrade Programme, under which GPL’s efficiency and reliability will be enhanced through electricity loss reduction measures, improvements in the operational capabilities, and strengthening the management and corporate performance of the utility company.
The programme consists of three components which will be implemented over a five-year period
This new programme will rehabilitate approximately 830 kilometers of GPL’s distribution network by implementing an integral approach to tackle overall losses, while strengthening GPL’s management and technical capabilities.
This project is funded by loans totaling US$37.6 million provided by the IDB and grants totaling US$26.9 provided by the EU.
WATER AND SANITATION
Under the second agreement, amounts totaling US$31.7 million will be provided to finance a Water Supply and Sanitation Infrastructure Improvement Programme.
The programme is expected to increase the percentage of households with 24-hour access to water and water pressure that is in line with national standards. It is also intended to reduce the percentage of water that goes unaccounted for and increase the number of homes with improved access to drinking water and proper sanitation arrangements.
This programme will also improve efficiency, quality and sustainability of potable water services in Regions Three, Four and Six, strengthen GWI’s operational capacity and the management, and improve the delivery of sanitation in programme areas.
The programme specifically aims to improve water service pressure, quality and continuity of water service as well as reduce the level of Non-Revenue Water (NRW) in programme areas. Civil works will include the construction of three new Water Treatment Plants at Uitvlugt in Region Three, Diamond in Region Four and Sheet Anchor in Region Six.
It will also involve the expansion of two existing water treatment plants in Georgetown located at Sophia and Central Ruimveldt, as well as the rehabilitation of the Shelter-Belt Water Treatment facility in Georgetown.
Other works will include the upgrade of nearly 20,000 service connections, as well as the replacement and installation of 70km of transmission and distribution mains in program areas. [Verify accuracy that this is actually what the project will be doing].
This project is funded by loans totaling US$16.8 million provided by the IDB and grants totaling US$14.8 provided by the Caribbean Investment Fund of the European Union.
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