Business

Published: Sunday May 3, 2009 MYT 10:23:00 AM

China to loan Guyana $40M to update power system


GEORGETOWN, Guyana (AP): Guyana is turning to a $40 million loan from China to overhaul its crumbling electrical system and end rolling blackouts.

Guyana Power & Light manager Bharrat Dindyal says the funds will be used to build several substations and link power grids in the capital and southeastern Berbice. The region is the country's breadbasket and produces rice, sugar and vegetables.

The government blames aging equipment and contaminated fuel for frequent power outages that residents say are often followed by dangerous surges.

Dindyal said Saturday that as many as 23,000 illegal electrical hookups in impoverished areas also have hurt service.

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