The Caribbean Development Bank - CDB

The Caribbean Development Bank was established in 1969 for the purpose of contributing to the harmonious economic growth and development of the Caribbean states. It seeks to promote economic cooperation and integration, with urgent regard to the needs of the less developed members of the region. There are twenty regional and five non-regional members of the CDB. Its financial resources are made up of Ordinary Capital Resources (OCR) which comprise mainly subscribed capital and borrowings, and Special Fund Resources (SFR) which are used to make or guarantee loans of a high developmental priority. SFR loans have longer grace and amortization periods, as well as lower interest rates than those applicable to OCR. In addition to its loan facilities, CDB also has technical assistance and grant facilities to support economic development in its member countries. These include the Caribbean Technological Consultancy Services (CTCS), and the Basic Needs Trust Fund (BNTF).

CDB Member States are divided into four groups, and because of its large debt burden, low per capita income, and inadequate infrastructure, Guyana is the only member in Group 4. As is the case with other donors, CDB’s activities have intensified with the onset of the Economic Recovery Programme. Since 1992, five loans totalling approximately US$33 M have been approved under SFR 3 (1992-1996), the main priority of which is the provision of concessional resources to improve infrastructure, strengthen local financial institutions, and increase their productivity.

Active Loans

1. Rehabilitation & Improvement of Sea Defences [8/SFR-GU] US$7.4 M. Agreement Date: February 1992.

   Objectives:

   • (i) To strengthen sea defences on the West Coast of Berbice, between the Abary and Berbice Rivers, in order to free agricultural lands from incursions of saline water, and
   • (ii) to halt major flooding of rice lands in the targeted area.

   Current Status: The report of tenders in respect of bids for construction has not been received

2. Rehabilitation and Replacement of Pumping units on GUYSUCO Estates in Berbice and Demerara[9/SFR-GU] US$5.0 M.

   Agreement Date: February 1994.

   Objectives:

   • (i) To reduce the incidence of disease spread by vectors which prevail in stagnant water, and
   • (ii) to maintain and improve the production capacity of the agricultural lands in coastal areas.

   Current Status: The Borrower is in the process of negotiating with short-listed consultants.

3. Rehabilitation of the Linden-Soesdyke Highway and Replacement of Bridges[10/SFR -GU] US$11 M.

   Agreement Date: July 1994.

   Objective:

   • (i) To rehabilitate the Linden Highway in order to reduce the need for premature replacement of transport vehicles.

   Current Status: The contract for the rehabilitation of the road has been rewarded.

4. Rehabilitation of LBI Water System [11/SFR-GU] US$8.8M.

   Agreement Date: March 1995.

   Objective:

   • (i) To improve the quantity and quality of water supplied to selected regions in Guyana, and enhance the administrative efficiency of GUYWA.

   Current Status: Engineering consultants have been approved.

5. Assumption of Liat's Debt to CDB [12/SFR-GU] US$0.43M, £0.07 M, 0.12 MECU, (total: US$0.67 M).

   Agreement Date: April 1996.

   Objective:

   • (i) To provide funds for the Government of Guyana to liquidate its portion of Liat's debt.

Active Grants and Technical Assistance

1. Grant in Support of the Economic Recovery Programme [GAS/GU] US$2 M.

   Agreement Date: June 1990.

   Objectives:

   • (i)To effect the institutional strengthening of the Statistical Bureau;
   • (ii) to strengthen financial intermediation and support services to export industries; and
   • (iii) to provide Studies and Experts Funds (STEP).

   Current Status: Elements (i) and (ii) have been completed. The grant was scheduled for three years, and was extended for the fourth time to December 31 1996, in order to facilitate completion of projects under STEP Fund.

2. Basic Needs Trust Fund (BNTF) US$3.8M. 1992-1994 (first phase).

   Objectives:

   • (i) To expand and conserve the stock of social and economic infrastructure essential for growth, while providing basic services and short term employment in low income communities; and
   • (ii) to maximize the use of local labor, and minimize recurrent maintenance costs in the areas of health, education, potable water supply, drainage, footpaths, rural roads, environmental improvement, and the community-based direct retail facilities used by small producers.

   Current Status: First tranche of funds committed, and almost completely disbursed.