Guyana to receive US$23.4 million IDB loan
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| Published on Friday, July 13, 2007 |
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GEORGETOWN, Guyana (GINA): A loan agreement totalling US$24.3 million was signed this week by Guyana's Minister of Finance Dr Ashni Singh and Resident Representative of the Inter-American Development Bank (IDB) Sergio Varas Olea, which is part of the financing for the rehabilitation of the Transport Infrastructure Rehabilitation Programme to which Government is contributing US$2.7 million.
The entire cost of the programme is US$27 million and is aimed at promoting permanent accessibility and safety along the main national road network.
The loan with soft financing at one percent interest rate for the first 10 years and two percent thereafter and a repayment period of 40 years will be executed by the Ministry of Public Works and Communications.
The Finance Minister expressed appreciation to the IDB for the confidence it has placed in Guyana’s economy by approving the investment, noting that the maintenance of a stable macro-economic environment has enabled Guyana to receive the funding.
Specific objectives of the programme will be the improvement of the road network reliability and driving conditions along the Timehri – Rosignol roadway by replacing or rehabilitating existing critical structures to accommodate wider culverts.
The Resident Representative of the IDB pointed out that the Bank is pleased to note Guyana’s progress and achievements in the area of maintaining a stable macro-economic environment which have also been praised in the report of the International Monetary Fund (IMF) Executive Board 2006 Article IV Consultation with Guyana.
He made mention of the Berbice River Bridge, which is a huge private sector investment project. This effort was praised since it is the first time that the private sector is taking the lead on a project of such magnitude. He pointed out that the Bank would like to see these initiatives continue which will bode well for Guyana.
The project will represent a prototype which can be re-created elsewhere. He said Government is continuing to modernise the infrastructural base to ensure social progress.
Works on this roadway were initiated under the Main Road Rehabilitation and the Bridges Rehabilitation Programmes. In addition, the programme will contribute to the strengthening of the ongoing road maintenance activities along the main national road network. Both activities have been continuously supported by previous operations of the Bank.
Additionally, the programme includes the rehabilitation of the Black Bush Polder Road, a main road located in one of the significant agricultural areas of the country. This programme will allow for reductions in transport and logistical costs, contributing to economic growth and social development.
It involves the installation of traffic lights and reflectors, the construction of sidewalks, drains, pavement markings and bus stops. As part of the programme, a weight control system for vehicles using the main road network will be implemented to protect the investment.
It is expected that the enhancement and upgrading of public infrastructure will provide and maintain a core national road network that provides a basis for the economic development of the country and contribute to social integration.
This programme will also contribute to the establishment and enhancement of the road and bridge linkages with Brazil, Venezuela and Suriname and, through these countries, the rest of South and Central America, to facilitate regional, national and international trade and commerce, cultural exchange and regional coherence.
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