IDB approves US$90 million loan to strengthen electricity service in The Bahamas
Key Points(5)
- The Inter-American Development Bank (IDB) has approved a US$90 million loan to help improve the reliability and efficiency of electricity service throughout The Bahamas.
- The financing is the second operation under a Conditional Credit Line for Investment Projects (CCLIP) approved in 2020 to support broader energy sector reforms and the expansion of renewable energy in the country.
- The IDB said the new investment will focus on boosting the efficiency of electricity metering, optimizing grid management, and strengthening the institutional capacity of the state-owned Bahamas Power and Light Company (BPL).
- Approximately 352,000 residents across New Providence and the Family Islands are expected to benefit through the installation of Advanced Metering Infrastructure (AMI) and modern smart meters at no cost to customers.
- The meters will include prepayment features that allow households to monitor and manage electricity consumption in real time, with an estimated 41,000 vulnerable customers set to gain the most from this improvement.
The Inter-American Development Bank (IDB) has approved a US$90 million loan to help improve the reliability and efficiency of electricity service throughout The Bahamas.
The financing is the second operation under a Conditional Credit Line for Investment Projects (CCLIP) approved in 2020 to support broader energy sector reforms and the expansion of renewable energy in the country.
The IDB said the new investment will focus on boosting the efficiency of electricity metering, optimizing grid management, and strengthening the institutional capacity of the state-owned Bahamas Power and Light Company (BPL).
Approximately 352,000 residents across New Providence and the Family Islands are expected to benefit through the installation of Advanced Metering Infrastructure (AMI) and modern smart meters at no cost to customers. The meters will include prepayment features that allow households to monitor and manage electricity consumption in real time, with an estimated 41,000 vulnerable customers set to gain the most from this improvement.
The project will also expand Supervisory Control and Data Acquisition (SCADA) technology in the Family Islands to improve monitoring and grid operations at both the distribution and transmission levels.
As part of the program, a Geographical Information System (GIS) will be developed to map existing electrical infrastructure, supporting faster outage detection and restoration, enhancing emergency response, and strengthening overall service quality. BPL will also receive support to upgrade data management systems, financial oversight, corporate governance, and long-term energy planning, while advancing capacity in IT and big data analytics.
The IDB said the program represents a key step in ongoing energy transformation efforts aimed at delivering more sustainable, efficient, and affordable electricity services to consumers.
The loan carries a 25-year amortization period, a 5.5-year grace period, and an interest rate based on the Secured Overnight Financing Rate (SOFR).
