GUYANA WATER

Promoter – Financial Intermediary

CARIBBEAN DEVELOPMENT BANK,COOPERATIVE REPUBLIC OF GUYANA,GUYANA WATER INC

Location

• Guyana

Description

The project will finance the improvement of the water supply services in four regions of Guyana, such as the construction of new wells, five new water treatment plants, new transmission lines, service connections and metering systems in the regions. The Caribbean Development Bank (CDB) will be EIB borrower/financial intermediary for this operation. CDB will on-lend EIB resources to the Government of Guyana for the purpose of financing the project. The execution agency and promoter, as mentioned above, will be Guyana Water Incorporated (GWI), a public limited company created under the 2002 Water and Sewerage Act of Guyana and the main drinking water supplier of the country. This is an allocation under EIB project 2016-0150 CDB Climate Action Framework Loan II.

Objectives

The project has two main goals: (i) to increase the availability and accessibility (water security) to treated water for the population within 5 coastal communities (Walton Hall to Charity, Wakeman, Leguan Island, Bush Lot and Tain to N50 Village), through new and upgraded water supply infrastructure; (ii) to improve the water quality by reducing contaminants such as iron. The project aims at complying with World Health Organization's (WHO) water quality guidelines in the water supply systems. It also complies with the studies carried out in relation to the Guyana's Coastal Aquifer Management System (Groundwater Management 2020 - 2030; Coastal Aquifers Guyana / GWI 2020). The project is in line with the Integrated Water Supply and Sanitation sector policy (IWSS), prepared by the Government of Guyana and the project promoter.

Sector(s)

• Water, sewerage - Water supply; sewerage, waste management and remediation activities

Proposed EIB finance (Approximate amount)

USD 27 million (EUR 25 million)

Total cost (Approximate amount)

USD 89 million (EUR 84 million)

Environmental aspects

Due to the nature of the works to be implemented, the negative environmental impacts are expected to only occur in the construction period and mainly locally based, temporary and reversible (e.g. minor disturbance due to pipe replacement techniques). Such temporary negative effects are assessed as not having any measurable and residual environmental effects and they will be mitigated with appropriate measures, in line with the promoter's Environmental and Social Management and Monitoring Plans. The project investments are overall expected to have positive long-term effects on the environment as they ensure a more efficient and sustainable use of groundwater resources.

Procurement

The promoter will be responsible to carry out all procurement related to the project. The promoter is a public authority as defined in the EIB's Guide to Procurement (GtP) and the public procurement regime will be applicable to the project components. The EIB-CDB Procedural Framework (PF) in respect of mutual reliance for jointly co-financed public sector projects in common countries of operation was signed in October 2019. The PF concludes that EIB and CDB share the same public procurement principles of economy, efficiency, transparency, non-discrimination and accountability and that, in practice, the general principles and key features of a sound procurement process supported by the two parties can be considered broadly equivalent for all aspects of procurement. Under such PF, CDB will support the promoter and monitor the procurement processes. The procurement processes above the EIB's Guide to Procurement thresholds will be published in the Official Journal of the EU.

Status

Under appraisal