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Guyana signs US$32.9 million loan agreement with IDB
Minister of Finance Dr Ashni Singh and President of the Inter-American
Development Bank (IDB), Luis Alberto Moreno on Sunday in Miami signed
two agreements valued at US$32.9 million to aid Guyana's continuing
quest to improve the agriculture and power sectors.
A release
from the Ministry of Finance stated that the Loan Agreements are for
the Agricultural Export Diversification Programme and the Power Sector
Support Programme, which are an integral element of the government’s
strategies for developing the agriculture and power sectors, and
enhance other initiatives currently being implemented in these sectors.
Singh is in Miami representing Guyana at the 49th Annual Meeting of
the Board of Governors of the IDB and the 23rd Annual Meeting of the
Board of Governors of the Inter-American Investment Corporation.
In
the bilateral meeting between Singh and Moreno, the Finance Minister
updated him on recent economic developments in Guyana, including some
of the emerging opportunities that the government is currently pursuing
in its thrust to accelerate social and economic development in Guyana.
He
also noted the challenges that are still to be overcome in the process
while conveying the government’s strong appreciation of the IDB’s
continued support to Guyana through its several ongoing operations in
the country
The release stated that Moreno reiterated the Bank’s commitment as an active partner in advancing Guyana’s development agenda.
The president was also updated on a number of projects and developments since he had visited Guyana in August last year.
The
released explained that the Agriculture Export Diversification
Programme will cost the government a sum of US$21.9 million, of which
US$20.9 million will be financed from resources of the IDB and US$1
million from local counterpart resources.
The main components
of the Programme are (i) Private Sector Entrepreneurship into
Agribusiness (US$5.9 million), (ii) Agribusiness Export and
Facilitation Services (US$2.6 million), (iii) Strengthening and
consolidating Agricultural Health and Food Safety Services (US$6
million) and (iv) Drainage and Irrigation Rehabilitation (US$3
million).
In relation to energy, the release further stated
that the government saw the need to further strengthen the power sector
through the Power Sector Support Programme which would result in a
series of policy reforms aimed at promoting a more sustainable and
efficient energy sector. This Programme will be financed through a
US$12 million policy-based loan disbursed in three tranches.
The reforms to be undertaken are:
- Institutional, Legal and Regulatory Reforms – including
updates to the Electricity Sector Reform Act 1999 and the Public
Utilities Commission Act 1999; updates to GPL’s Licence to address
tariff structure and rate of return; preparation of an energy sector
policy which addresses evolving issues such as skyrocketing fuel
prices; and development of a strategic plan for the Public Utilities
Commission which clearly establishes enforcement mechanisms.
- Strengthening GPL’s capabilities through corporate instruments which enhance governance, transparency and accountability.
- Promotion
of sustainable electricity loss reductions by installation of a new
customer information system with a billing module; monitoring of
electricity losses using the updated methodology; and implementation of
an educational campaign to reduce non-technical losses and promote
demand-side management.
Source: CaribbeanNetNews
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