Latest update November 13th, 2024 1:00 AM
EU releases US$17.3M for coastal water, electricity upgrades
GPL upgrades under PUUP in Canal No.1, West Bank Demerara.
The European Union (EU) has disbursed additional grant funds to rehabilitate the electricity distribution lines network and the construction of new water wells along coastal communities.
The funds were disbursed to the Inter-American Development bank (IDB) towards the Power Utility Upgrade Programme (PUUP), and Water Supply and Sanitation Infrastructure Improvement Program (WSSIIP).
EU Ambassador to Guyana, Jernej Videtič highlighted that both the EU and the IDB recognised the need to assist Guyana’s further development through investments in the energy and water sectors and therefore allocated US$40.4M through the Caribbean Investment Facility to address the priority needs of the sectors.
Videtič stressed that in the energy sector, work will focus on strengthening the management capacity of Guyana Power and Light (GPL), increasing operational efficiency and reducing commercial and technical losses. This, he said, will necessitate the rehabilitation of distribution lines network in Georgetown and Region 4 and will benefit the population living in the coastland regions.
Videtič further added that in the water sector work on strengthening the performance of the Guyana Water Incorporated (GWI), improving water pressure, quality and continuity of supply as well as reducing non-revenue water losses will be undertaken.
The EU Ambassador highlighted that an important aspect will be an improved access to sanitation for low-income households.
The construction of three new water treatment plants at Diamond on the East Bank of Demerara, Sheet Anchor in Berbice and Uitvlugt on the West Coast of Demerara coupled with major rehabilitation works of the water treatment plant at Shelterbelt, Georgetown is also part of the project.
It is anticipated that at least 55,300 households will benefit from upgraded access to drinking water.
In October 2014 EU and the IDB committed to support the efforts of the Government to improve the quality and delivery of reliable water supply and also to strengthen the reliability and efficiency of electricity service delivery.
In this regard, representatives of both organizations had met at the IDB’s headquarters in Washington, DC on October 10, 2014 to sign the loan and investment grant agreement with the Guyana.
At the time and in the framework of the agreement, the EU contributed to the partnership with $7.49M towards the PUUP and $6.3M towards the WSSIIP. These funds were disbursed to the IDB to act as the contracting authority for works under the PUUP and WSSIIP.
The EU approved the creation of the Caribbean Investment Facility (CIF) on April 30, 2012. The purpose of the CIF is to strengthen Caribbean regional integration and to foster investments in key infrastructure in the Caribbean, with a particular focus on the energy, environment, climate change mitigation and adaptation, transport and social infrastructure sectors. These projects are the first to be funded under the CIF program.
The collaboration is part of the EU’s Innovative Financial Instruments commonly called ‘blending’ which is an instrument for achieving the EU’s external policy objectives, complementary to other aid modalities and pursuing the relevant regional, national and overarching policy priorities.
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