– Finance Minister signs historic agreements with IDB, EU in Washington D.C to benefit electricity and water sector

FINANCE Minister Dr. Ashni Singh signed two project agreements yesterday in Washington D.C with the Inter-American Development Bank and the European Union (EU), mobilising a total of US$96M of development financing to benefit the electricity and water sectors of Guyana. Signing the agreements alongside the Finance Minister was IDB President Luis Alberto Moreno in the presence of European Union Commissioner for Development, Andris Piebalgs.HISTORIC
The signing is historic as 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 EU. In addition, these projects are also the first to benefit from the EU’s new Caribbean Investment Facility (CIF).
“Guyana considers itself privileged to have been chosen by these two development partners to pioneer these two new financing facilities,” Singh stated, referring to the IDB’s GLM and the EU’s CIF. “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.
He saluted the multi-donor involvement in the two projects and expressed the hope that it becomes a model for replication.

POWER SUPPLY
Under the first agreement, an amount of 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.
The three main components of the agreement are expected to produce the following results:
(1) A sustained trend in overall loss reduction;
(2) An improved and accountable management performance against consistent Key Performance Indicators and within minimum international standards;
(3) More modern, efficient, and reliable operational systems in GPL.
This new programme will rehabilitate approximately 830 kilometres of GPL’s distribution network by implementing an integral approach to tackle overall losses while strengthening its management and technical capabilities.
This project is funded by loans totalling US$37.6 M provided by the IDB and grants totalling US$26.9M provided by the EU.

WATER AND SANITATION
Under the second agreement, amounts totalling US$31.7M 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, 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 3, 4 and 6, 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 3, Diamond in Region 4 and Sheet Anchor in Region 6. It will also involve the expansion of 2 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 70 km of transmission and distribution mains in programme areas.
This project is funded by loans totalling US$16.8M provided by the IDB and grants totalling US$14.8M provided by the Caribbean Investment Fund of the European Union.

IMPROVING THE LIVES OF ALL GUYANESE
After the signing ceremony, Dr Singh stated that the two projects aim to continue the work being done by the People’s Progressive Party/Civic (PPP/C) Government to deliver demonstrable improvements to the quality of life enjoyed by all Guyanese. In the case of the water and sanitation project, the minister pointed out that access to potable water and acceptable sanitation facilities are amongst the Millennium Development Goals to which Guyana is firmly committed to achieving and to which much progress has already been made. In relation to the power supply improvement project, Dr Singh pointed out that improving efficiency at GPL is critical not only to ensure that consumers on the grid enjoy a more reliable supply of electricity in the near term, but also to ensure that GPL is prepared to be an efficient off-taker of the power to be supplied by Amaila Hydro Falls Project, once it comes on stream. The minister further explained that the project serves not only as a measure to bring early relief to consumers but also as part of necessary preparedness for the Amaila Hydro Project.
The minister also thanked the IDB and the EU for their support to the Government’s development efforts. He noted that both donor agencies have delivered demonstrable development impacts across Guyana through tangible improvements in the quality of life enjoyed by Guyanese citizens.