Barbados has requested an extension of the final disbursement date for an Inter-American Development Bank (IDB) loan aimed at deploying cleaner fuels and renewable energies.
This was disclosed recently by Minister of Home Affairs and Information, Wilfred Abrahams, at a post-Cabinet press conference at the Barbados Water Authority, The Pine, St. Michael.
Minister Abrahams stated: “Barbados has requested to extend the final disbursement date for the IDB loan by 24 months 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 explained that the loan faced challenges due to delays in the private and public sectors related to COVID-19. “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 have to get the pipes…. We all know the supply chain disruptions that they had over COVID [19]. It was impossible for us to get the stuff in to be able to complete according to the project dates,” the Information Minister stated.
Mr. Abrahams said Minister of Energy and Business, Senator 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 noted that if the extension was not granted, the unutilised resources at the end of the current disbursement date would amount to $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 the Barbados National Oil Company Limited, and programme evaluation and project management and monitoring.
The extension is crucial to achieving the objectives of the project and utilising the undisbursed loan resources.