BARBADOS-Government seeks extension of IDB final disbursement date.

BRIDGETOWN, Barbados, CMC – Barbados has requested an extension of the final disbursement date for a multi-million dollar Inter-American Development Bank (IDB) loan to deploy cleaner fuels and renewable energies.

Home Affairs and Information Minister Wilfred Abrahams said the island is seeking a two-year extension regarding the final disbursement date for the IDB loan from June 14, 2023, to June 14, 2025.

“The loan was allocated a total of US$34 million, which was intended to upgrade existing natural gas infrastructure, increase energy efficiency and renewable energy applications, and reduce greenhouse gas emissions,” he said.

Abrahams said the loan faced challenges due to delays in the private and public sectors related to the coronavirus (COVID-19) pandemic.

“The volume of things we’re talking about, such as photovoltaic (PV) panels and battery storage, have to be subject to procurement, and they have to be able to come in and be delivered.

“Even with the National Petroleum Corporation (NPC) installations, you must get the pipes…. We all know their supply chain disruptions over COVID [19]. We couldn’t get the stuff in to be able to complete according to the project dates,” he said.

Abrahams said Energy and Business Minister Lisa Cummins presented the proposal to the Cabinet, which approved the request to extend the disbursement. The extension would allow for the completion of ongoing projects and the execution of contracts associated with ongoing procurements.

He said if the extension is not granted, the unutilized resources at the end of the current disbursement date will amount to US$16.1 million, nearly half the total value of the loan.

The projects under the loan include upgrading natural gas infrastructure, increasing photovoltaic capacity and battery storage, providing technical support to the NPC and Barbados National Oil Company Limited, and program evaluation, project management, and monitoring.

The government said extension is crucial to achieving the project’s objectives and utilizing the undisbursed loan resources.