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A US$9.5 million loan approved by the Inter-American Development Bank (IDB) for Guyana will be utilized in financing the reconstruction of the Georgetown sewerage system, improving the efficiency of the Guyana Water Inc. (GWI) and combating transmission of neglected tropical diseases.
According to an IDB news release, the funds will be used by GWI to improve the operational performance of the Georgetown sewerage system through the reconstruction of its most critical components. It will include the complete replacement of the 5.5-kilometer sewerage ring main in Georgetown, replacement of all the delivery mains, and purchase of additional pumps and maintenance equipment.
The loan will also enable the GWI to improve its financial performance by replacing or upgrading pumps so that they consume less electricity, one of the utility’s major operating expenses, the release stated. The programme will include the purchase of portable measuring equipment, the replacement of inefficient pumping equipment and operational improvements to electric motors in 12 selected locations.
Moreover, a portion of the loan will be used to finance public health programmes that will limit the transmission of water-related neglected tropical diseases, including lymphatic filariasis and intestinal helminthiasis. These and other diseases have persisted in parts of Georgetown partly because the sewerage system, built nearly 80 years ago, suffers from frequent blockages and ruptures that can expose residents to untreated wastewater.
Finally, the loan will pay for activities to strengthen the capacity of GWI’s Wastewater Management Division and its Energy Efficiency Group. And these will include development of an asset management implementation strategy; knowledge transfer and staff training programmes on wastewater operation and maintenance practices and energy use; and public awareness campaigns, specifically targeting schools and business owners.
The IDB loan consists of $4,750,000 from the Bank’s Ordinary Capital and $4,750,000 from the Fund for Special Operations. The former is a 30-year loan, with a six-year grace period and an interest rate based on LIBOR (LIBOR is an acronym for London InterBank Offered Rate. This rate is that which is charged by London banks, and is then published and used as the benchmark for bank rates all over the world). The latter is a 40-year loan, with a 40-year grace period and a 0.25 percent interest rate, the release concluded.
