Guyana gets more IDB cash for environment and security sectors

Last Updated on Wednesday, 25 February 2015, 3:21 by GxMedia

Finance Minister Dr Ashni Singh and Inter-American Development Bank President, Luis Albert Moreno sign the US$32.16M loan

The Government of Guyana and the Inter American Development Bank (IDB) has signed a loan agreement totalling US$32.16M for the strengthening of the environment sector and the Citizen Security Strengthening Programme, the Government Information Agency (GINA) reported.

The agreement was signed at the 4^th IDB Caribbean Governors’ Regional Meeting which was held in Freeport, The Bahamas, on February 19, 2015.

Finance Minister, Dr. Ashni Singh represented the Guyana Government while the IDB was represented by its President, Mr. Luis Alberto Moreno. 

“The decision by the IDB to provide these loans is further testimony of the Bank’s confidence in this Government’s commitment to responsible management and, in particular, to implementing meaningful reform in the two sectors concerned,” the Minister stated.

This is the second loan operation in the Environment Sector programme that was approved by the IDB in 2013.

Approval was made possible since Guyana was able to achieve all of the policy reforms agreed in 2013; as well as the maintenance of an appropriate macroeconomic policy framework.  

The programme will support the consolidation of Guyana’s Low Carbon Development Strategy (LCDS) and REDD+ (Reducing Emissions from Deforestation and Forest Degradation).

The activities under this operation include: organising multi-stakeholder consultations; supporting the implementation of a transparent, rules-based, and inclusive accountability and enforcement system for forest governance; aiding Ministry of Natural Resources and the Environment’s efforts to minimise and manage forest degradation from extractive activities, in particular from mining; integrating land use planning; and operating a reliable Monitoring, Reporting and Verification System (MRVS) for these activities.

“The reforms contemplated by the programme make for even more effective discharge of Guyana’s responsibilities in this area, which is of critical importance given Guyana’s established leadership in the area of climate change and sustainable management of natural resources,” Minister Singh said.

The IDB financing for this second phase is made up of a loan of US$17.16 million. The loan comes 50% from the IDB’s ordinary capital, with a 30-year maturity, and a six-year grace period, and 50% from the IDB’s Fund for Special Operations, with a single payment upon a 40-year gratuity, with a fixed interest rate.

Meanwhile this new citizen security programme funded through a $15 million loan was approved by the Board of Directors on December 10, 2014.

It is the second in this sector since 2006 and is designed to build on the achievements of the Citizen Security Programme (1752/SF-GY) and to enhance sustainability of the achievements of that earlier operation.

“The programme will go a long way in helping to make our neighbourhoods and communities safer and our security agencies more effective,” the Finance Minister noted.

The loan comes 50% from the IDB’s ordinary capital, with a 30-year maturity, and a 6-year grace period, and 50% from the IDB’s Fund for Special Operations, with a single payment upon a 40-year gratuity, with a fixed interest rate.