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Bolivia to enhance electricity infrastructure with IDB support

$78 million loan will also help reduce carbon emissions

The loan will help Bolivia boost its power service coverage, improve its energy matrix’s sustainability, reduce carbon emissions, and contribute to the goal of ensuring universal access to electricity throughout the country.

To this end, the loan will finance construction over the next four years of a 240 km high-voltage transmission line and furnish it with all the equipment needed to link up San Ignacio de Velasco, in Bolivia’s Santa Cruz Department, with the interconnected national grid. This will improve service quality in the area and pave the way for a future expansion of the network to link up with the isolated electric system of San Matias, 300 km away from San Ignacio.

The program will also seek to reduce energy consumption in the public lighting systems of the municipalities of Oruro and Potosi by implementing power efficiency measures, including replacing 35,000-plus conventional fixtures with efficient and smart appliances in those two cities’ avenue, street and park public lighting systems.     

Investments in power systems have major positive impacts on people’s economic performance and standard of living, mainly because interconnecting isolated systems is more cost-effective than installing new generation plants in remote areas, and also because linking up power systems reduces electricity generation’s operational costs and fuel consumption.

In addition, better street and public spaces lighting enhances safety for all the community and particularly for women and girls by reducing their exposure to potential sexual and physical assault.

The project’s total cost is $78 million, of which $66.3 million will come from the IDB’s ordinary capital, with a 24-year term, a 6.5-year grace period, and a LIBOR-based interest rate. The remaining $11.7 million will come from the Bank’s concessional ordinary capital, with a 40-year term, a 40-year grace period, and 0.25% interest.

About the IDB

The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.

Press contact
More Information

Sergio Ballon
IDB Project Team Leader
sballon@iadb.org