IDB approves $37M for East Berbice road
-also financing to study new Demerara bridge
Stabroek News
June 18, 2004
The Inter-American Development Bank has announced the approval of a $37.3 million low interest loan part of which will be used to rehabilitate the road connecting Moleson Creek and New Amsterdam.
Technical studies under the programme include a feasibility study and environmental impact assessment for a new bridge across the Demerara River.
The money will also be used to strengthen the Ministry of Public Works and Communications and undertake technical studies for additional improvements in surface transportation in urban and rural areas.
An IDB press release says, "The rehabilitation of 86 kilometres of road by the project will complete improvement of the eastern Atlantic shore road system that connects the capital of Georgetown to the major population centres on the Atlantic coast and provides the only land transport integration link with Suriname.
"The program will lower transportation costs, reduce accident rates, improve access to agricultural production and facilitate regional integration of Guyana and Suriname within the framework of the Regional Infrastructure Integration in South America (IIRSA)."
Resources from the loan will also finance the continuation of an ongoing programme to strengthen the institutional capacity of the Ministry of Public Works and Communications through its Central Transport Planning Unit. The ministry will become better equipped to plan, evaluate and set priorities for transportation policies and investments. The programme will also support the ongoing implementation of the action plan of the Work Services Group, a specialised unit responsible for road system management, project execution, supervision and reporting of road and bridge investment and maintenance works.
Technical studies under the programme include a feasibility study and environmental impact assessment for a new bridge across the Demerara River, an urban transportation study for Georgetown, and a series of preparatory studies of investments to improve the rural transportation system. Participation of local communities in the financing and maintenance of an improved rural transportation system will be a priority.
The programme builds on previous IDB lending programmes for surface transportation in Guyana, which totalled about $100 million between 1992 and 2001, and the IDB says this reflects its strategy to promote sustainable growth and competitiveness through investments in critical infrastructure.
Earlier this year the Bank approved two other loans to Guyana, $28M to strengthen fiscal management of public finances and $24 million to improve health service delivery.
The loans have a 40-year term, with a 10-year grace period, at an annual interest rate of 1 per-cent during the grace period and 2 per cent thereafter.