IDB greenlights US$12mn loan to improve Linden water service

- Friday, June 17, 2011

IDB greenlights US$12mn loan to improve Linden water service

IDB has greenlighted a US$12mn loan to improve efficiency, quality and sustainability of potable water service in Guyana's second largest city, Linden, the development bank said in a release.

The five-year program will help cut national water utility Guyana Water Incorporated's (GWI) annual energy spending in Linden from US$232,000 to US$140,000, reducing non-revenue water levels from 65% to less than 50%, and bringing water pressure to adequate levels in all households.

The program will also address the institutional strengthening needs of GWI in Linden via technical support on operations and maintenance, standard operating procedures, environmental and social safeguards, water quality monitoring procedures, and data collection for monitoring purposes.

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Works will include building two treatment plants, two reservoirs to secure water supply and better pressure for the city, and building and rehabilitating 10km of pipelines.

The bank's financing consists of a US$6mn loan from its ordinary capital for a 30-year term, with a six-year grace period and Libor-based interest rate, and another US$6mn credit from the IDB's concessional fund for special operations with a 40-year term, 40-year grace period and 0.25% interest.

Linden is the capital of the Alto Demerara-Berbice region, and is located on the Demerara river, 100km inland from the Atlantic coast.