The Inter-American Development Bank (IDB) has approved a US$30 million Conditional Credit Line for Investment Projects (CCLIP) to support Guyana’s efforts to enhance its water and sanitation infrastructure.
The general objective of the CCLIP is to improve the resilience, quality, and sustainability of drinking water and sewerage services provided by Guyana Water Incorporated (GWI), the national utility provider.
According to a release, this programme is expected to benefit approximately 151,560 people by improving access to safe, reliable water services. GWI will also benefit from digital transformation, enabling the adoption of modern technologies and tools that will enhance operational management, reduce costs, and increase revenue.
The main investments under this phase include the construction of a new water treatment plant at Diamond, East Bank Demerara, and approximately 15 kilometres of transmission pipelines and interconnections, which will allow for the integration of the new plant with the existing distribution network.
The programme will support Non-Revenue Water reduction initiatives, including advanced leak detection and repair, and public awareness campaigns.
Additionally, the programme will upgrade GWI’s digital infrastructure, including the integration of management information systems, improved metering, and operational efficiency enhancements across the East Bank Demerara, East Coast Demerara, and Cummings Lodge systems.
This initiative, the bank said reflects the country’s commitment to delivering climate-resilient infrastructure and ensuring access to a quality water supply for its citizens.
As part of the new CCLIP, the IDB also approved a Specific Investment Loan (ESP) of US$15.57 million to finance improvements in water and sanitation infrastructure. The US$30 million CCLIP has a 25-year repayment term, a 5.5-year grace period, an interest rate based on the Secured Overnight Financing Rate (SOFR), and will benefit from a co-financing contribution of US$36.33 million, to be financed by the Japan International Cooperation Agency (JICA).
Over the past five years, Guyana has embarked on a strategic transformation of the water and sanitation sector to increase the potable water supply by constructing new treatment plants, installing transmission mains to improve service quality nationwide, and drilling new wells in both coastal and hinterland communities to extend access to safe water. The IDB credit line will support Guyana’s continued efforts to upgrade and transform the potable water supply sector.
