Guyana Secures $30 Million IDB Credit Line to Modernize Water Infrastructure

In a landmark move to modernize its water and sanitation infrastructure, the Inter-American Development Bank (IDB) has approved a US$30 million Conditional Credit Line for Investment Projects (CCLIP) to bolster Guyana’s national efforts in delivering sustainable, climate-resilient water services. The financing will benefit approximately 151,560 people across key regions of the country, including East Bank Demerara, East Coast Demerara, and Cummings Lodge.

The main implementing partner, Guyana Water Incorporated (GWI), the national utility provider, stands to gain both in infrastructure upgrades and digital transformation as part of the program’s dual approach to service improvement and efficiency.

A Phased Plan: Specific Investment Loan and Future Expansion

The newly approved CCLIP forms a broader programmatic approach that allows phased financing for investments over time. As part of this overarching strategy, the IDB has also granted a Specific Investment Loan (ESP) of US$15.57 million under the CCLIP framework to finance initial improvements.

The loan carries favorable terms: a 25-year repayment period, a 5.5-year grace period, and an interest rate linked to the Secured Overnight Financing Rate (SOFR). It is also supported by a significant co-financing contribution of US$36.33 million from the Japan International Cooperation Agency (JICA), signaling strong international backing for Guyana’s infrastructure development agenda.

Major Infrastructure Developments Underway

One of the program’s signature infrastructure projects is the construction of a new water treatment plant in Diamond, East Bank Demerara. This facility will be supported by approximately 15 kilometers of transmission pipelines and critical interconnections to integrate the new plant into GWI’s existing distribution network. These upgrades aim to enhance water quality, service continuity, and overall network resilience.

Additionally, the program will address the widespread issue of Non-Revenue Water (NRW) through a comprehensive strategy. Key interventions include:

• Advanced leak detection and repair systems

• Modern metering and billing systems

• Public awareness campaigns to foster water conservation and user accountability

These measures are expected to significantly reduce water losses, cut operational costs, and increase GWI’s revenue generation capacity.

Digital Transformation for Greater Efficiency

Beyond physical upgrades, the initiative emphasizes the digital modernization of GWI’s operations. The integration of management information systems, smart metering technologies, and digital tools will enable real-time monitoring, more accurate data collection, and enhanced customer service delivery.

The focus areas for digital upgrades include:

• Deployment of advanced metering infrastructure (AMI)

• Integration of operational and customer management systems

• Geographic Information Systems (GIS) for improved pipeline and asset management

• Data analytics to support predictive maintenance and planning

These advancements are poised to make GWI more agile, transparent, and responsive in addressing the country’s water needs.

Supporting a Broader National Vision

The IDB’s credit line aligns with Guyana’s ongoing strategic transformation of its water and sanitation sector. Over the past five years, the government has invested in constructing new treatment plants, laying new transmission mains, and drilling wells—especially in underserved coastal and hinterland communities. The aim has been to extend potable water access and ensure safe, reliable supply to all regions.

With this new financial mechanism in place, Guyana is better equipped to meet its national goals and international commitments on water security and sustainable development. It reflects a robust partnership model, combining national ambition with regional and global financing instruments.