A US$2.5 million loan from the European Union will help the Guyanese government construct a new 330 kW hydroelectric plant on the Chiung River.
The financing is being made under the 10th European Development Fund program, with Guyana responsible for covering the remainder of the $3.23 million project's costs.
Power generated at the new hydropower station will primarily be used to power the proposed Kato Secondary School and other existing government buildings.
Construction on the project is expected to begin in October 2013 and will take about 18 months to finish.
HydroWorld.com reported in September that an agreement between Sithe Global and the China Railway First Group had been signed for the development of Guyana's 165-MW Amaila Falls hydropower complex.
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