WASHINGTON — The Board of Executive Directors of the Inter-American Development Bank (IDB) has approved a Policy-Based Programmatic Loan (PBP) of US$150 million to strengthen energy security in Barbados.
The program 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. It 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. In addition, 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 operation will accelerate the integration of new technologies into the electricity sector and promote competitiveness and private investment in energy generation and storage.
The US$150 million loan has a repayment term of 20 years, a grace period of 5.5 years, 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.
Luis Alejandro Simon
Communications Sr Associate
About this project
Barbados and the IDB