Wastewater fund encouraging private sector to submit proposals for projects

Dear Editor,

In July, 2011 the Government of Guyana signed an agreement with the Inter-American Development Bank (IDB) for the establishment of the revolving fund for financing wastewater management projects in Guyana. This agreement was to facilitate a programme to address the need for increased coverage of wastewater treatment in Guyana.

Wastewater treatment which involves the removal of contaminants from liquid waste discharged by domestic residences, commercial properties, industry and agriculture, is usually considered as a low priority by many in the water and sanitation sector. Fortunately, the Government of Guyana made it a high priority given the relationship between poor sanitation, public health and quality of life.

Also in the context of Guyana, while the protection of coastal waters is not really an issue as is the case in many Caribbean countries, removal of wastewater from the urban environment and improving public health is of primary importance in any wastewater management programme for Guyana. Another important point to note is that as water supply improves, wastewater management becomes essential since more wastewater will be generated.

In all development efforts, policies and strategies must be supported by financing to enable and ensure successful implementation and completion of initiatives. Hence, the Guyana Wastewater Revolving Fund (GWRF) allows for the financing of a variety of wastewater solutions within both the public and private sectors.

This fund will facilitate public-private partnerships (PPPs) between the government and private sector entities to facilitate improved wastewater management solutions to ensure that discharges from municipal, industrial and other sources into the rivers and streams are environmentally acceptable and conform to established regulations and standards.

Under this initiative, the government provides the funding for capital investments in wastewater treatment facilities, through the revolving fund loan facility made possible by the Global Environment Facility (GEF), and co-implemented by the Inter-American Development Bank (IDB) and the United Nations Environmental Programme (UNEP). One of the key challenges in the private sector’s involvement in wastewater management in Guyana, is affordable financing. As such, the GWRF was established to respond to, and address in part these challenges, by creating a pilot financing mechanism that can be used to provide sustainable financing for environmentally sound and cost-effective wastewater management facilities.

In addition to providing low-interest financing, another objective of the GWRF, is to promote policy and legislative reforms, dialogue, and knowledge exchange with key stakeholders in the wastewater sector in Guyana.

The GWRF also intends to define further the role of the private sector in wastewater management in Guyana. As wastewater management evolves as a development priority, it is imperative that the public and private sectors ensure effective collaboration since there are enormous benefits for both in areas such as tourism, public health, environment and climate change.

The aspects for eligible consideration for private sector entities interested in accessing funding under this project include the construction, rehabilitation, upgrading or expansion of local wastewater treatment projects that advance the goals of the Cartagena Convention. The specific assessment of these entities to determine their eligibility will focus on the technical, socio-economic, financial, environmental and social, and legal aspects of their proposals. The technical aspect requires that the prospective proposals indicate the following: that wastewater collection systems will not be funded by GWRF resources unless treatment towards the intention of reducing effluent loads is included; proof that all viable technologies were assessed and the most sustainable and economically viable technology was selected, the use of a proven technology as applicable in the Guyana context or in the Caribbean Region; how improvements will occur in wastewater management in the respective area; direct contribution to the reduction of pollution of the receiving water bodies (river and steams) in Guyana. Expertise resident within the Project Management Unit of the GWRF will provide assistance as is needed

Financial requirements are that projects must be financially viable and can sustain costs associated with operations and maintenance and debt servicing. The environmental and social requirements demand that proposals satisfy the environmental guidelines of the Environmental Protection Agency (EPA). From a legal perspective, lands upon which wastewater systems will be constructed should be free from any legal encumbrances.

The Project Management Unit of the GWRF at the Ministry of Housing and Water is encouraging private sector entities to submit proposals to access this financing facility and also interested agencies are invited to contact the unit for further information and guidance on the project and process.

Yours faithfully,
Audreyanna Thomas