World Bank approves $45M project for coastal resilience in Guyana

World Bank approves $45M project for coastal resilience in Guyana
Banking & Financial Services
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Ajay Banga, 14th president of the World Bank | World Bank website

The World Bank has approved a project to aid Guyana in adapting to climate change and mitigating flood risks in its coastal regions. This initiative aims to benefit approximately 320,000 people, or around 40 percent of the country's population, including the most vulnerable groups.

Guyana is one of the countries most susceptible to climate change. Research indicates that rising sea levels—among the highest globally—expose all of the nation's coastal agriculture and 66.4 percent of its coastal urban areas to flooding and erosion, with potential GDP losses exceeding 46.4 percent.

The country's coastal drainage system consists of a complex network of canals, culverts, sluices, and pumps. Over time, its efficiency has diminished due to inadequate maintenance investments and increasing flood risks from urbanization and climate change impacts. After significant floods in 2005, the government highlighted the importance of flood risk management by increasing the budget for the National Drainage and Irrigation Authority.

The new Coastal Adaptation and Resilience Project will build on current efforts to improve flood risk management in Guyana. The project will repair or replace over 45 drainage infrastructure assets, particularly focusing on sluices. Investments will consider projected land uses, population growth, urbanization, and climate change impacts to enhance drainage functionality for efficient rainfall runoff discharge, improve flood protection, and strengthen irrigation services.

“This initiative builds on a long-standing engagement between the World Bank and Guyana on strengthening resilience to flooding and natural hazards. With this operation, we are reinforcing Guyana’s efforts to maximize disaster risk management while protecting lives and reducing inequalities in the long term,” said Diletta Doretti, World Bank Group Resident Representative for Guyana and Suriname. “This project is also a critical component of Guyana’s Low-Carbon Development Strategy, aligning with the country’s broader vision for climate-resilient growth,” she added.

The project will collaborate closely with Guyana’s Ministry of Agriculture to manage and operate the drainage system effectively. It will upgrade the National Drainage and Irrigation Authority's asset management system, develop technical standards for flood risk management in urban areas, and provide training to enhance personnel capacity for system operation and maintenance.

This US$45 million grant is financed by the Guyana REDD+ Investment Fund (GRIF), established with funding from Norway. Under this agreement, Norway compensates Guyana for reducing greenhouse gas emissions from deforestation and forest degradation. Guyana uses these payments to implement its low-carbon development strategy. The Coastal Adaptation and Resilience Project is part of these efforts.

Learn more about the work of the World Bank in Latin America and the Caribbean: https://www.worldbank.org/en/country/caribbean

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