Govt. signs US$32M security, environmental loans with IDB

Feb 25, 2015 News

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Government has announced the signing of two loan agreements with the Inter-American Development Bank (IDB) totaling US$32.16M.
According to the Ministry of Finance yesterday, the loans would once again

signal the bank’s confidence and commitment to support development initiatives in Guyana. The two loans will address police and prison initiatives as well as the environmental management sectors.
According to the Ministry, one of the two agreements signed provided is for US$15M. This will finance what is called the Citizen Security Strengthening Project. Under this project, a number of initiatives will be funded that is aimed at contributing to a reduction in crime and violence such as homicides, burglaries and robberies, and domestic violence in Guyana.
The objectives of the project are to improve behaviours for non-violent conflict resolution in target communities; increase the police effectiveness in crime prevention and investigation and address the issue of repeat offenders at the Guyana Prison Service.
“The programme will go a long way in helping to make our neighborhoods and communities safer and our security agencies more effective,” the Finance Minister noted.
Under the Environment Sector Strengthening Project, some US$17.16M will be provided in support of policy reforms in the sector. The programme aims to support Guyana in the implementation of its Low Carbon Development Strategy (LCDS) with emphasis on climate change initiatives and sustainable natural resources management, the Ministry said.
“The objective of this operation, which is the second in a programmatic series, is to continue the process of strengthening the governance and policy framework that supports the implementation of the LCDS. The loan will further enhance the regulatory, institutional and monitoring structures of the programme to support the implementation of that strategy.”
“The reforms contemplated by the programme make for even more effective discharge of Guyana’s responsibilities in this area, which is of critical importance given Guyana’s established leadership in the area of climate change and sustainable management of natural resources,” Minister Singh said.
He said that the decision by the IDB to provide the loans is further testimony of the bank’s confidence in Government’s commitment to responsible management and, in particular, to implementing meaningful reform in the two sectors concerned.
Over the weekend, the Guyana Human Rights Association (GHRA) objected to the loans being signed, saying it has written the IDB to hold the monies until after the May 11 elections.
GHRA said that the letter was sent Friday to the Country Representative of IDB which it says could be misused for electioneering purposes by the ruling People’s Progressive Party/Civic (PPP/C).
In its letter to the bank, the watchdog body said that it is disturbed by the timing of the announcement that the IDB has approved a loan to be spent in furthering the country’s Low Carbon Development Strategy (LCDS).
“While the GHRA is not suggesting impropriety in the approval process, or of the IDB as an institution, nor disagreeing with the substance of the loan, issues of perception with respect to timing cannot be overlooked.”
GHRA said it is recommending that the loan not be made available to the Government of Guyana before general elections are held on May 11, 2015 and the new Parliament installed a month later.
In explaining its reasons for the stance, GHRA noted that best democratic practice encompasses the principle that the incumbent Government not be able to influence elections by inaugurating new projects which directly benefit particular communities, such as roads, health centres or other such activities.
“Asian countries such as India and Bangladesh, for example, have gone farther and specifically prohibit any projects which might influence elections being initiated for a set period prior to elections.”
GHRA said that the manner in which the Government announced the date for general elections was improper and, by not linking the proclamation to the dissolution of Parliament, has generated much controversy.
“However, any ensuing confusion should not be rewarded by business being conducted as if Parliament were still in session.”
GHRA also pointed out that Amerindian communities are identified among the beneficiaries of the recently-approved loan.
“It is common knowledge that these communities are traditionally a priority target of political party electioneering. In light of the above and in the spirit of erring on the side of caution, the GHRA would encourage the IDB to defer final release of the loan in question until after general elections.”
The letter was copied to the Caribbean office of the IDB.

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