Guyana Secures $30M IDB Loan to Modernize Water Infrastructure
Guyana secures US$30M IDB loan for major water infrastructure upgrade, benefiting over 150,000 residents through modernized treatment facilities and digital transformation initiatives.
New water treatment facility construction site in Diamond, Guyana, part of IDB-funded infrastructure modernization
The Inter-American Development Bank (IDB) has approved a US$30 million Conditional Credit Line for Investment Projects (CCLIP) to strengthen Guyana's water infrastructure, marking another milestone in the country's ongoing infrastructure development initiatives.
Comprehensive Water System Modernization
The investment program, which aims to benefit approximately 151,560 people, focuses on enhancing the resilience, quality, and sustainability of services provided by Guyana Water Incorporated (GWI). This development follows Guyana's broader regional commitment to infrastructure modernization.
Key Infrastructure Developments
- Construction of a new water treatment plant at Diamond
- Installation of 15 kilometers of transmission pipelines
- Integration with existing distribution networks
- Implementation of digital transformation initiatives
Digital Transformation and Efficiency
GWI will undergo a comprehensive digital transformation, implementing modern technologies to improve operational management, reduce costs, and increase revenue generation. This technological upgrade aligns with Guyana's strategic focus on infrastructure modernization.
Financial Structure and International Support
The CCLIP comes with favorable terms including:
- 25-year repayment term
- 5.5-year grace period
- Interest rate based on the Secured Overnight Financing Rate (SOFR)
- Additional US$36.33 million co-financing from Japan International Cooperation Agency (JICA)
National Coverage Goals
The government aims to achieve 100% potable water coverage by year-end, building on significant progress from 38% coverage in 2020 to over 90% in 2025. This initiative includes both coastal and hinterland communities, ensuring comprehensive national access to safe water supply.
Adrian Singh
Business reporter focused on economic freedom, foreign investment, and institutional transparency.