The Government of the Cooperative Republic of Guyana has requested a loan in the amount of US$ 25 million from the Inter-American Development Bank (IDB) for the provision of financial resources required for accelerated electricity sector development, specifically for service extension to currently unserved consumers along the coast and for demonstration projects in the Hinterland (Interior).

The Unserved Areas Electrification Project (UAEP) started in 2001 with finance provided by the Government of Guyana, in the amount of US$ 7 million. The project supported by the IDB will be carried out over a five-year period (2002 - 2006) and will consist of the following three components:

C Investment: This component will finance the extension of distribution networks and provide approximately 40,000 connections to houses situated along the coast, which are within proximity to existing distribution networks owned and managed by the principal public supplier, Guyana Power and Light, Inc.

C Hinterland demonstration project: This component will be executed in two phases: (i) the evaluation of options and requirements for electrification of isolated communities where the extension of existing grid would not be feasible with a view to recommending sustainable institutional and financing schemes for future projects and (ii) based on the findings of the evaluation, a limited number of two to four demonstration projects in selected areas, applying suitable technologies and locally available energy resources will be carried out.

C Institutional strengthening and capacity building: Financing will be provided for: (i) legal, regulatory and institutional reform; (ii) establishing mechanism for monitoring and evaluation of the individual project components; and (iii) training of personnel in the relevant sector agencies to enable the successful implementation of the UAEP.

It is intended that the resources of this loan finance the procurement of goods and services in relation to the works envisaged under the three components. This will be done through international, national competitive bidding and other procurement procedures in accordance with the IDB=s Procurement Procedures and Guidelines.

According to the procurement procedures of the Government of the Cooperative Republic of Guyana and the IDB, each specific invitation for the supply of goods or services will include:

Execution of the investment component of the UAEP is the responsibility of the principal public supplier, Guyana Power and Light, Inc. Overall project execution is the responsibility of the Project Execution Unit, Ministry of Public Works and Communications (Office of the Prime Minister), and involves project coordination, financial management, administration and procurement of goods and services.

Where the estimated value of goods exceeds US$ 350,000 or consultancies exceed US$ 200,000, advertisements will be placed in international publications and a daily newspaper in Guyana; where the respective values are less than the above limits, advertisements will be placed in a daily newspaper in Guyana, or proposals may be invited from a shortlist of suitable candidates.

Invitations for bidding for goods and services to be financed by the IDB loan will be issued by the Guyana Power and Light, Inc. for the investment component and by the Project Executing Unit for the other two components.

All correspondence and requests for information should be addressed to:Office of the Prime Minister

Office of the Prime Minister

Unserved Areas Electrification Program

Attn: Project Coordinator

Wight=s Lane, Kingston

Georgetown, Guyana.

Tel: (592) 226-3759, 231-7179. Fax: (592) 226-7573.

E-mail: maxine.nestor@solutions2000.net