IDB and Jamaica sign multi-million dollar loan

IDB and Jamaica sign multi-million dollar loan

The Government of Jamaica has signed a loan agreement amounting to US$40 million with the Inter-American Development Bank (IDB) to finance the Energy Management and Efficiency Program (EMEP).

The financing program includes US$30M for comprehensive energy efficiency retrofits in 30 government-owned buildings and the installation of LED lighting in another 50 structures.

The energy efficiency program will be undertaken in schools, hospitals and public agencies, and will help cut the government’s electricity bill by US$7 million annually.

Goal is efficiency improvement and energy diversification

The IDB loan will also support energy planning and management and contribute to the government of Jamaica’s comprehensive program of efficiency improvement and energy diversification.

The EMEP is component of the Jamaican Government’s broader efforts to provide high-quality, affordable, environmentally friendly energy and reduce the country’s dependence on high-cost imported oil.

Part of bigger energy plan

“Today is a great moment, because it not just focuses on energy efficiency and bringing US$7 million worth of savings to your budget every year because of the retrofits.  We see this as just one really small component in terms of what the bigger energy plan and policy is for the country,” said General Manager for the IDB’s Caribbean Country Department, Therese Turner-Jones, at Friday’s signing ceremony.

More energy efficient transportation sector

Another important objective of the energy efficiency program is to make transportation smart and more efficient. Jamaica’s transportation sector consumes 30 percent of all oil imports and makes a significant contribution to the country’s overall CO2 emissions.

The EMEP loan earmarks US$3.5 million for the implementation of a universal transport management system (UTMS), which includes telematics to help model, plan, operate and monitor traffic flows along Kingston’s major arteries.

The loan will also fund training and coaching to staff at the  National Works Agency (NWA), enabling them to operate and maintain these systems.

These measures will reduce congestion, curtail air pollution, save fuel, and ameliorate the low productivity attributable to gridlocked streets.

Tri-partner financing

 The US$40 million loan is co-financed by the IDB, the Japan International Cooperation Agency (JICA), and the European Union Caribbean Investment Facility (EU-CIF).

The IDB is providing the first tranche of US$15 million, which will be matched by JICA. The EU-CIF is providing US$10 million in grant funding.

Finance Minister Audley Shaw said, “The Government of Jamaica greatly appreciates the support of all three funding partners, the IDB, the Embassy of Japan, and the European Union, in the major areas of infrastructural development, particularly in energy efficiency and renewable energy applications…..The finalization of the agreement with the IDB is a strong indicator of the commitment of the Bank to the sustainable economic development of Jamaica.”

For recent article on Jamaica’s energy, click the link: Jamaican PM pleased with energy sector

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