Under the project, called the Unserved Areas Electrification Programme (UAEP), the Guyana Power and Light (GPL) is required to contribute US$1M from its revenue base, officials said.

The UAEP will benefit households in more than 221 coastal and inland communities in all the administrative regions of Guyana, except Regions One (Barima/Waini), Eight (Potaro/Siparuni) and Nine (Upper Takutu/Upper Essequibo). Those who will benefit from the project will be asked to pay $10,000 for their power supply connection, including meter installation.

In all, the project will cost US$34.4M, officials said.

GPL Chief Executive, Mr. John Lynn, who was at the signing of the contract, said the joint objective is to facilitate up to 7,000 connections next year in East and West Berbice, and in East and West Demerara.

Finance Minister, Mr. Saisnarine Kowlessar signed for the Government, while Mr. Chester Bembridge, Operational Specialist with the IDB local office, signed for the bank. The signing took place at the Ministry of Finance, Main Street, Georgetown.

The communities that will first be served will be determined by the Ministry of Housing and Water, based on how long the area has been in existence and the extent to which the area is populated.

Acting President Sam Hinds, who has responsibility for the electricity sector, said the criteria under which the areas will be selected for electrification were agreed to by the Government, the IDB and GPL.

A factor that will also be taken into consideration in the selection process is the equitable spread of areas among the various regions so as to avoid the need to do over any work, he said.

A Project Implementation Unit within the Prime Minister's Office will be responsible for the overall monitoring and evaluation of this aspect of the project.

The project has three components.
Activities under the investment component include the procurement of materials, the majority of which is foreign-based, the survey and preparation of site maps where necessary, the design of networks, the construction of distribution of networks and the connection of service lines and meters.

In addition, a programme will be conducted to sensitise consumers on the safe use of electricity and on energy conservation, Mr. Hinds stated.

Under the Hinterland Project Preparation component, a study is to be carried out to determine the options and requirements for hinterland electrification.

According to Mr. Hinds, the study is expected to gather information to assess the feasibility for hinterland electrification and will examine methods of community participation in the management of hinterland electrification projects.

Based on the evaluation of that study, 3-5 demonstration projects in selected hinterland communities will be constructed.

The third component involves institutional strengthening and capacity building. This component will finance project management activities, including monitoring and evaluation of the project.

The sector agencies that will benefit include the Government Electrical Inspectorate Department, the Environmental Protection Agency and the Public Utilities Commission.

"The Government is appreciative of the IDB support of this, another programme which aims to improve the quality of life of the people and support the Government's overall poverty alleviation strategy", Mr. Hinds said.

Lynn said that since the project started, about 1,600 customers have already paid the necessary connection fee, and at the end of June this year, almost 1,400 had received electricity.

He said that as the funds become available, GPL, in partnership with the Government, the IDB, other agencies, and the local communities, will "continue to press ahead" with arrangements to extend the work already done.

Bembridge said the IDB is proud of its role as a partner with the people and Government of Guyana in the social and economic development of this country.