WASHINGTON — The Inter-American Development Bank (IDB) approved a US$90 million loan to support improvements in the reliability and efficiency of electricity service in The Bahamas. This operation is the second in a Conditional Credit Line for Investment Projects (CCLIP) approved in 2020 to finance larger programmatic support to the energy sector and promote renewable energy in the country.
This new operation aims to enhance the efficiency of electricity metering, optimize grid management, and strengthen the institutional capacity of the state-owned utility, The Bahamas Power and Light Company (BPL). It will benefit approximately 352,000 people (85% of the country’s population) across New Providence and the Family Islands through installation of Advanced Metering Infrastructure (AMI) and modern smart meters, at no acquisition or installation cost to users.
The smart meters will be equipped with prepayment functionality, allowing BPL customers to better manage their electricity usage in real time. This will be particularly beneficial to vulnerable populations, numbering about 41,000 people.
Residents in the Family Islands will also benefit from an improved monitoring system based on Supervisory Control and Data Acquisition (SCADA) technology, which will enhance electricity-grid management in distribution and transmission networks.
The program will develop a Geographical Information System (GIS) with digital mapping of existing electrical infrastructure. These developments will improve resilience with faster detection and restoration time, better emergency response, and enhanced quality of electricity service.
Furthermore, it will support enhancements to BPL's data-management system, reinforce its medium- and long-term energy planning capabilities, improve financial management and corporate governance, and promote capacity building in information technology and big-data analytics.
The program will contribute significantly to the energy transformation reforms currently being implemented by the country, aimed at having more sustainable, efficient, and affordable delivery of electricity services.
The US$90 million loan has a 25-year amortization period, a 5.5-year grace period, and an interest rate based on SOFR.
About the IDB
The Inter-American Development Bank (IDB), a member of the IDB Group, is devoted to improving lives across Latin America and the Caribbean. Founded in 1959, the Bank works with the region’s public sector to design and enable impactful, innovative solutions for sustainable and inclusive development. Leveraging financing, technical expertise, and knowledge, it promotes growth and well-being in 26 countries. Visit our website: www.iadb.org
Simon, Luis Alejandro
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