WASHINGTON, CMC – The Inter-American Development Bank (IDB) has approved a US$90 million loan to support improvements in the reliability and efficiency of electricity service in The Bahamas.
It said that this operation is the second in a Conditional Credit Line for Investment Projects (CCLIP) approved in 2020 to finance larger programmatic support to the energy sector and promote renewable energy in the country.
The IDB said that this new operation aims to enhance the efficiency of electricity metering, optimize grid management, and strengthen the institutional capacity of the state-owned utility, The Bahamas Power and Light Company (BPL).
It will benefit approximately 352,000 people across New Providence and the Family Islands by installing Advanced Metering Infrastructure (AMI) and modern smart meters at no cost to users for acquisition or installation.
The smart meters will be equipped with prepayment functionality, enabling BPL customers to manage their electricity usage in real time better. This will be particularly beneficial to vulnerable populations, numbering about 41,000 people.
Residents in the Family Islands will also benefit from an improved monitoring system based on Supervisory Control and Data Acquisition (SCADA) technology, which will enhance electricity-grid management in distribution and transmission networks.
The program will develop a Geographical Information System (GIS) and map existing electrical infrastructure. These developments will improve resilience with faster detection and restoration time, better emergency response, and enhanced quality of electricity service.
Furthermore, it will support enhancements to BPL’s data management system, reinforce its medium- and long-term energy planning capabilities, improve financial management and corporate governance, and promote capacity building in information technology and big data analytics.
The IDB said the program will contribute significantly to the country’s energy transformation reforms, aimed at achieving a more sustainable, efficient, and affordable delivery of electricity services.
The US$90 million loan has a 25-year amortization period, a 5.5-year grace period, and an interest rate based on the Secured Overnight Financing Rate (SOFR).
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