Peru to Expand Access to Productive, Sustainable Electricity in the Amazon with IDB Support

WASHINGTON — The Inter-American Development Bank (IDB) has approved a $200 million Conditional Credit Line for Investment Projects (CCLIP) – along with a first $70 million loan under the credit line – to support Peru in implementing a sustainable and productive rural electrification program in its Amazon region. The financing is aligned with the IDB Group regional coordination program Amazonia Forever.

The credit line, which the IDB's Board of Executive Directors approved under the Multiple Works Loans category, aims to advance energy resilience in Peru’s Amazon region. The first loan will drive sustainable development in the area through access to renewable energy.

The IDB-backed program will benefit 7,600 rural households and over 30,000 people in 25 communities in the departments of Loreto and Amazonas. These communities, at least eight of which are home to Indigenous Peoples, will gain access to electricity and receive training on how to use it efficiently and productively.

The program will also include activities to enhance the services of the General Directorate of Rural Electrification of the Ministry of Energy and to train staff at the public utility Electro Oriente to operate and maintain solar power and storage equipment.

The Amazon is Peru’s most vulnerable area because of limited access to basic services, including electricity. The first loan will help close this gap in access to energy, especially renewables, that hinders sustainable development in the region.

Specifically, the program will provide 25 rural locations with access to reliable and environmentally sustainable electricity through hybrid mini-grids that integrate solar energy and battery storage. It will also improve project management to close gaps faster and ensure the sustainability of interventions.

The first $70 million loan under the credit line for investment projects has a 17-year repayment term, a 6.5-year grace period, and an interest rate based on the Secured Overnight Financing Rate (SOFR). Peruvian partners will contribute an additional $18 million.