Loan of US$33 million will strengthen operations of Suriname’s power sector and will upgrade critical infrastructure in Suriname’s National Power System
The Inter-American Development Bank (IDB) has approved a loan of US$33 million to provide financial support for Energie Bedrijven Suriname (EBS), Suriname’s public power utility. The overall objective of this investment loan is to contribute to the sustainability of the power sector in Suriname through strengthening EBS’s operational procedures and corporate performance by financing improvements in information technology and by upgrading and retrofitting critical infrastructure in the National Power System.
The growth rate of Suriname’s electricity demand is high — averaging 6.8 percent annually over the past 5 years. EBS’s transmission and distribution infrastructure struggles to cope with a steadily rising energy demand, and the replacement of several aged components will allow for no delays, so as to prevent energy shortages and reduced quality of service.
The project focuses its support on EBS’s Strategic Business Plan and builds on an existing IDB operation currently in execution. The project’s interventions will be complemented by a policy-based programmatic series of operations that seek to support Suriname’s government is developing a new energy sector framework, which will provide a comprehensive, long-term set of improvements for the delivery of energy services and towards strengthening of its power sector.
The IDB US$33 million loan is over 25 years, with a five-and-a-half year grace period and an interest rate based on LIBOR. The executing agency will be EBS.
- Christopher Barton