The EU will extend $460m towards project costs under the 10th European Development Fund (EDF) program, while the government of Guyana will provide the remaining costs.
Electricity generated from the hydro power station would power the Kato Secondary School proposed for construction in 2013 and other existing government facilities including schools, medical facilities and police outpost.
The proposed plant will be set up at the Chiung Water Fall near the village of Kato, beginning October 2013.
With a 36m head waterfall serving as the primary energy source, the facility will have an installed capacity of 330kW.
Prime Minister Samuel Hinds was quoted by carribean360 as saying that a survey conducted three decades ago had explored potential hydropower sites in the country.
Hinds added that the project’s construction is expected to be concluded within 18 months.
