Construction has started on a reverse osmosis plant in the River area of Barbuda. The plant is being constructed with a $1.2 million loan from Venezuela and is part of the Petro-Caribe (PDV) deal negotiated by Prime Minister Baldwin Spencer. The plant is expected to produce at least 600,000 gallons per day for the village of Codrington and to hotels in the area. Pipes will be laid from River to Codrington and from there to households up as far as the Highland area of the island. This project will also be a major resource for farmers, particularly those with land at Highland and in areas traversed by the pipelines.