The Government has received approval for a loan of US$20M from the Islamic Development Bank (IsDB) which will go towards the Guyana Power and Light (GPL) Utility Upgrade Programme.
The loan will effect a comprehensive turnaround of the company’s electricity distribution, according to a statement from the Ministry of Finance.
The state-owned power company is plagued with inefficiencies affecting its reliable supply of electricity.
The loan will facilitate the rehabilitation of 153 km of GPL’s medium voltage and low voltage network and 6, 941 smart meters, including the associated transformers, service lines and distribution boxes.
It will also provide for the rehabilitation and extension of two 69/13.8KV substations at Kingston and Vreed-en-hoop including equipment switchgear, power transformers, rerouting of circuits distribution feeders and cable connections.
The consultancy services for the preparation of designs and specifications for the sub-stations and the site supervision for the works will also be covered by the loan.
“It will support the existing project management unit by financing additional specialised engineers and technicians to reinforce the existing team,” the Finance Ministry said,
GPL is the Executing Agency for the project and will operate under the aegis of the Ministry of Public Infrastructure.
The GPL Utility Upgrade Programme is co-financed by the Inter-American Development Bank and the European Union, and is expected to reduce losses, realise a more efficient and reliable service and deliver a better quality of electricity for households and commercial users.
Minister of Finance, Winston Jordan will sign the Agreement with the IsDB on September 19, 2018 in Saudi Arabia.
Guyana became a member of the IsDB in 2017; the partnership was formalised with a mutual commitment to a five-year work programme.
This loan is the first sum to be disbursed from the resource envelope of US$900m that was extended to Guyana by the bank. Guyana has already benefitted from two grants from the Bank totalling more than US$500,000.
