The Inter-American Development Bank (IDB) says its Board of Executive Directors has approved a Policy-Based Programmatic Loan (PBP) of US$150 million to strengthen energy security in Barbados.
The Washington-based financial institution said the programme will help modernize Barbados’ electricity sector through reforms that foster a “more competitive, resilient, and sustainable energy market, supported by coordinated regulation and private sector participation.”
The programme will also contribute to improving system stability and reducing energy imports.
More than 135,000 electricity customers will directly benefit from the program through reduced exposure to international price fluctuations.
According to the IDB, independent power producers, lenders, and project developers will face lower investment risks and reduced financing costs.
“The population of Barbados, as well as the broader economy, will also benefit indirectly from reduced dependence on energy imports and from progress toward achieving national energy targets,” the IDB said.
“The operation will accelerate the integration of new technologies into the electricity sector, and promote competitiveness and private investment in energy generation and storage,” it added. (CMC)