NASSAU, BAHAMAS- 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. This operation is the second under a Conditional Credit Line for Investment Projects (CCLIP) approved in 2020 to finance broader energy-sector reforms and promote renewable energy across the country.
The new operation aims to enhance electricity metering efficiency, 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—about 85% of the population— across New Providence and the Family Islands through the installation of Advanced Metering Infrastructure (AMI) and smart meters, provided at no acquisition or installation cost to users.
The smart meters will include prepayment functionality, allowing BPL customers to better manage electricity usage in real time—an important feature for vulnerable groups, estimated at around 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, enhancing grid management in both distribution and transmission networks.
Additionally, the program will develop a Geographical Information System (GIS) with digital mapping of existing electrical infrastructure, improving resilience through faster fault detection and restoration, better emergency response, and enhanced service quality.
The initiative will further strengthen BPL’s data-management systems, reinforce its medium- and long-term energy planning, improve financial management and corporate governance, and promote capacity building in information technology and big-data analytics.
According to the IDB, this program will make a significant contribution to The Bahamas’ energy transformation efforts, supporting the government’s goal of delivering more sustainable, efficient, and affordable 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 SOFR.
