EU, Govt. negotiating 10th EDF financing conditions
The European Union (EU) is currently negotiating conditions of financing the 10th European Development Fund (EDF) with Government, says Christopher Ingelbrecht, Head of the Technical Section of the EU Delegation.
Meanwhile, sea defence works valuing 18M Euros are being executed under the Ninth EDF.
As opposed to financing the contractor directly as was done with the ninth EDF, the EU will be providing 14.8M Euros through a budgetary support system to the Ministry of Finance, Ingelbrecht stated.
He explained that this method of financing has been done with Guyana’s sugar sector and it was proven effective. To ensure proper accountability of funds, Government has to deliver against certain performance indicators.
Ingelbrecht indicated that this demonstrates EU’s confidence in Government’s ability to spend funds, and the country currently meets the requirement for general conditions valid for budget support.
The requirements for qualifying for the general conditions for budgetary support are: suitable sector policy in place for river and sea defence; macro economic stability, and continuing improvement in public finance management.
The European Union would prefer financing more river and sea defence maintenance works rather than the actual reconstruction of sea defence structures for the effective utilization of funds.
The EU has been financing the reconstruction, rehabilitation and maintenance of river and sea defence works along Guyana’s coastline for several years. Funding from the Union has supported Government tremendously.
Ongoing works under the ninth EDF commenced in January 2010 and seeks to reconstruct 1.6 kilometres and rehabilitate and maintain 18 kilometres of river and sea defence.