Guyana secures US$30M loan to improve water supply

– also assured US$15.57M loan to improve water, sanitation infrastructure

The Inter-American Development Bank (IDB) has approved a US$30 million Conditional Credit Line for Investment Projects (CCLIP) to aid in Guyana’s efforts to enhance its water and sanitation infrastructure.
According to the IDB, CCLIP aims to enhance the resilience, quality and sustainability of the services provided by Guyana Water Incorporated (GWI), including drinking water and sewerage services. Approximately 151,560 people will benefit from improved access to safe and reliable water services.
With the IDB credit line, Guyana can continue its effort to upgrade and transform the potable water supply sector. It is said that GWI will also undergo a digital transformation, enabling the adoption of modern technologies and tools to improve operational management, reduce costs and increase revenue. Additionally, the main objective of the investment includes the construction of a new water treatment plant at Diamond, along with approximately 15 kilometres (km) of transmission pipelines and interconnections to facilitate the integration of the new plant with existing distribution networks.
With the programme’s support for reducing non-revenue water initiatives, work will be undertaken to advance Guyana’s leak detection and repair efforts, along with public awareness campaigns. Meanwhile, enhancements are underway across the East Bank of Demerara (EBD), East Coast Demerara (ECD) and Cummings Lodge systems, with the integration of management information systems, improved metering and increased operational efficiency. The IDB also approved a Specific Investment Loan (ESP) of US$15.57 million to improve the water and sanitation infrastructure in Guyana.
Aiding the Government’s push for potable water nationwide, a 38 per cent increase was seen in 2020 and over 90 per cent in 2025, with the primary objective of achieving 100 per cent potable water coverage by year-end.
In addition, the US$30 million CCLIP has a repayment term of 25 years, a 5.5-year grace period and an interest rate based on the Secured Overnight Financing Rate (SOFR), and will also benefit from a co-financing contribution of US$36.33 million to be financed by the Japan International Cooperation Agency (JICA).
Over the past five years, Guyana has embarked on a transformative journey in the water and sanitation sector to increase potable water supply by constructing new water treatment plants, installing transmission mains to improve the quality of service to citizens nationwide, and drilling new wells in both coastal and hinterland communities to extend access to safe water supply.