The Inter-American Development Bank (IDB) approved a loan in the amount of US$10 million to improve energy efficiency and to manage electricity demand more effectively in the Archipelago of San Andrés, Providencia and Santa Catalina. This archipelago, located northwest of the Caribbean coast of Colombia, is one of the areas not connected to the country's electrical grid.
This project will benefit 7,200 consumers with the technological conversion of cooling, ventilation and lighting appliances into high energy equipment, and will promote the installation of photovoltaic solar solutions to reduce energy consumption from fossil fuels.
In addition to reducing emissions of greenhouse gases, the program expects to generate savings for Colombian energy consumers of between 25 and 55 percent.
The project also includes an environmental sustainability plan to ensure the proper disposal of the replaced equipment as well as communications and social management activities with the beneficiary communities.
The IDB loan, to be implemented by the Ministry of Mines and Energy of Colombia, has a repayment period of 20 years, a grace period of 10 years and a fixed interest rate of 0.75 percent.
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source oflong-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.