US$12m for Guyana power sector program

The Inter-American Development Bank announced the approval of a US$12 million loan to support the effort of the government to promote a more sustainable and efficient power sector in Guyana.

The program is envisioned in a three tranche policy based loan within a medium-term framework of institutional reform. It will support activities in the power sector that will promote an enabling environment to:

• encourage the promotion of sustainable reduction of electricity losses;
• improve efficiency by supporting institutional, legal, and regulatory reforms, establishing planning and priority setting in the sector that will contribute to the sustainability of electricity reductions;
• and to strengthen the power utility company capabilities in areas of corporate governance, transparency and accountability.

There are many challenges that hindered the advancement in power sector infrastructure in Guyana. “A unified approach from the utility company, the Ministry of Finance and the Office of the Prime Minister will improve the current power sector environment with the long-term goal of increasing the overall competitiveness in the country” for Guyana”, indicated the IDB Team Leader Alejandro Melandri.

The Ministry of Finance will carry out the project. The current IDB loan of US$12 million will be funded by Fund of Special Operations and the Ordinary Capital, with a 4 years disbursement period. (IDB)