Barbados borrows $68 million LNG loan

Government has secured a $68 million loan from the Inter-American Development Bank (IDB) to facilitate, among other things, the implementation of a public-private partnership project to import and supply Liquified Natural Gas (LNG) for power generation.

In making the announcement, the IDB representative in Barbados Juan Carlos de la Hoz said the loan would also provide technical support to the state-run National Petroleum Corporation and Barbados National Oil Company Limited to foster greater operational efficiency.

“This is the first IDB loan promoting LNG in the Caribbean which will not only substantially improve the natural gas network [but] expand the Micro LNG plant for industrial and commercial use in Barbados,” the IDB spokesman said.

He also pointed out that the loan would be used to promote renewable energy, while pointing out that Barbados’ installed renewable energy capacity for power generation moved from zero in 2009 to 19 megawatts in 2016.

“This represents more than 12 per cent penetration of renewable energy in the country’s energy mix,” de la Hoz added.

The loan is for a 24-year term and will be financed by the IDB’s Ordinary Capital resources with a 6.5 year grace period and a LIBOR-based interest rate.

In a release on Thursday, the Bank said it would generally “enhance Barbados’ energy security and sustainability by diversifying its energy mix through promoting the use of cleaner fuels for power generation, increasing the use of renewable energy sources, and increasing energy efficient applications by Barbados’ Government and private sector”.

It noted that Government’s priorities in the electricity sector include reducing electricity prices, increasing energy security, using cleaner fuels, and reducing negative environmental impacts.

Barbados is presently aiming to have renewable energy contribute 65 per cent of total peak electrical demand by 2030, as well as to achieve a 22 per cent reduction in electricity consumption by 2029, it added.

Government has also signalled its intention to achieve a 30 per cent economy-wide reduction in greenhouse gas emissions by 2030, compared with 2008.

The IDB loan will therefore finance improvements to the existing natural gas infrastructure to ensure natural gas service continuity.

12 Responses to Barbados borrows $68 million LNG loan

  1. James Austin Bynoe
    James Austin Bynoe December 10, 2016 at 12:16 am

    No growth in the economy but wanna keep borrowing and borrowing …. smh

    Reply
  2. Sherene Drakes-Seales
    Sherene Drakes-Seales December 10, 2016 at 12:23 am

    That should have been 61m…. 7m less re;Independence celebrations.

    Reply
  3. M King December 10, 2016 at 2:50 am

    Barbados can borrow from PSG&E. The installed single solar panels on utility poles. We have a lot of sunlight and by following this model a lot of pollution free energy can be generated. They would be no need for additional land. The world is sifting away from fossil fuels. LNG tanks are dangerous.

    Reply
  4. Kerwin Boxill December 10, 2016 at 7:20 am

    This was only a matter of time

    Reply
  5. Zena waithe December 10, 2016 at 7:52 am

    I hope we do see growth in the renewable energy sector, Barbados could be self sufficient on energy…that’s where the investment should go, we shouldn’t have to be buying fuel with precious foreign reserves, when we have the wind , and the sun, and lots of space to put them.

    Reply
  6. jus me December 10, 2016 at 9:43 am

    Dont we ALREADY have abundant Natural Gas??

    It just needed enlarging the operation.

    Anybody can provide more ACTUAL facts??

    Notice its to be a Private Public deal!!!
    Some real grease gunna be spread bout de place.

    WELL dem soon gone , never to return.PLEASE GOD.
    so Harvest all we can NOW.

    Reply
  7. Alex December 10, 2016 at 9:55 am

    Why are we spending this much on non renewable resources to generate power? Investment into solar and wind power is the way forward.

    Reply
  8. J. Payne December 10, 2016 at 8:53 pm

    Wait, why are the taxpayers being asked to foot this modernisation exercise? Isn’t the government owned oil-drilling company of Barbados supposed to be sold to some larger overseas energy company? Shouldn’t they be paying for their own modernisation?

    Reply
  9. John Q December 10, 2016 at 10:01 pm

    Yet another loan….. sadly I’m glad that I no longer live in B’dos. The taxpayers are going to pay for all of this !!!!

    Reply
  10. Troy December 11, 2016 at 10:51 am

    Couldn’t this money be out to better use….like fixing the roads. Improving the transportation sector, health care and to buy brains for the DLP and don’t forget a tongue for our PM.

    Reply
  11. Jackie Maynard December 12, 2016 at 4:46 pm

    Where is my income tax and unemployment cheques

    Reply
  12. Jackie Maynard December 12, 2016 at 4:48 pm

    Where are sorry

    Reply

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