The signing ceremony took place in the Credentials Room of the Presidential Secretariat.

The funding would significantly boost improvements in the housing sector for low-income families, and the project is an important plank in Guyana's development strategy.

Minister of Housing and Water, Mr. Shaik Baksh, said the project will provide more access for the population to be served with house lots both in the housing schemes and in the squatter settlements.

It will also provide basic infrastructure such as roads, drainage systems and water supply for the owners of some 5,500 house lots. About 1,500 of these house lots are located in squatter settlements.

Eligible households will receive transports (property deeds) after paying 10 to 15 per cent of the actual development cost.

In addition, households will benefit from the development of community services and initiatives assisted by non-governmental organisations (NGOs) and local authorities.

Baksh said that under the plan, Euro 1M would be spent on infrastructure for micro-enterprises and social activities such as community centres, facilities for solid waste management, and playgrounds.

The scheme is due to begin in October this year and is projected to continue for four years. It will also have spin-offs such as job creation for residents of the communities.

The minister said the EU agreement follows the low-income housing project financed by the Inter-American Development Bank (IDB). This project is currently on stream and is moving very rapidly, he said.

He noted, too, that the overall objectives of the project are to provide access to affordable housing for low-income groups in Guyana and to improve the quality of settlements by encouraging community participation and supporting community initiatives.

Baksh also explained that Euro 1M will be spent on micro projects in the housing schemes and squatter settlements.

The low-income housing scheme programme has already laid the foundation, and there is now a home-ownership training programme in the schemes.

The minister added that the EU's intervention will help to increase the rate of occupancy in the housing schemes, where the basic services are being provided.

Minister of Finance, Mr. Saisnarine Kowlessar, in brief remarks at the signing ceremony, said the Government of Guyana was grateful for the EU's financial support over the years and noted that Guyana has so far received some G$20B from the European Development Fund (EDF).

He explained that Guyana has qualified for the current EU funding because of its performance in the Eighth European Development Fund. He said Guyana is one of the few countries in the world that is getting a second chance under the Eighth EDF.

Head of the European Delegation to Guyana, Mr. Vincent De Visscher, highlighting the importance of the programme, also noted that the Government's performance over the past five years made the country eligible for further funding,

Although the project is not intended to build houses, the provision of infrastructure will create the possibility for people to build their own homes, Mr. De Visscher explained.