Sustainable Energy Facility for the Eastern Caribbean (GCF-FP020)

Regions
  • Latin America and Caribbean
Where the impacts of the investment may be experienced.
Financial Institutions
  • Green Climate Fund (GCF)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
A
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Oct 1, 2017
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Caribbean Development Bank (CDB)
The holder of the loan, grant, or other investment.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Grant, Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 80.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 60.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Grant Amount (USD)
$ 20.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 190.47 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ GCF website

Updated in EWS Jun 27, 2018


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Project Description

Financing commercial Geothermal Energy (GE) projects whilst strengthening legal and regulatory frameworks to underpin the development of GE potential in the East Caribbean region.

According to the Green Climate Fund, five East Caribbean states (Dominica, Grenada, Saint Kitts & Nevis, Saint Lucia and Saint Vincent & Grenadines) have small and isolated electricity markets that depend heavily on imported liquid fossil fuels for electricity generation. In pursuit of United Nations Sustainable Development Goal number 7 (affordable and clean energy), the Green Climate Fund says Geothermal Energy (GE) presents the largest available renewable energy resource, with the potential to provide low cost, reliable electricity generation.

The main barriers to GE development are the high investment cost, high uncertainty during early development stages, lack of access to capital and ability to finance through public debt, inadequate regulatory and policy frameworks, and other factors such as lack of technical skills and economies of scale.

The Green Climate Fund says that the Sustainable Energy Facility for the Eastern Caribbean will address these financial, technical and institutional barriers by providing institutional strengthening and capacity building, and provide a financing package. This financial package may include concessional loans and reimbursable grants to mitigate exploration and other underlying risks and unlock investments in GE by the private sector, critical to develop GE projects in the region. The end result will be to deliver GHG Emission Reductions of 9.4 million TCO2e during the lifetime of the programme.

Investment Description
  • Green Climate Fund (GCF)

The following groups will provide co-financing:

Inter-American Development Bank Loan : US$20.0 million

Clean Technology Fund Grant: US$ 19.1 million 

Japan International Cooperation Agency Loan:

CDB Loan: US$10.0 million

Global Environment Facility Grant: US$1.9 million

Inter-American Development Bank Grant: US$500.0 thousand

Japan International Cooperation Agency Grant: US$1.0 million  

Department for International Development Grant: US$18.0 million 

 

Contact Information

Inter-American Development Bank (IDB)

Matias Bendersky

+1 (202) 623-1723

mbendersky@iadb.org

Amal-Lee Amin

+1 (202) 623-1924

amalleea@iadb.org

Dominica: Ministry of Planning, Economic Development and Investment 

Samuel Carrette

+1 767 226 3561

+1 767 266 4289

Grenada: Ministry of Economic Development 

Fitzroy James

+1 473 435 8880 ext. 31125

Titus Antoine

+1 473 435 8889 ext 31130

Saint Kitts and Nevis: Department of Economic Affairs and Public Sector Investment Planning 

Lavern Queeley

+869 467 1255

Saint Lucia: Department of Economic Development, Transport, and Civil Aviation 

Philip Dalsou

7584685825

Saint Vincent and the Grenadines: Government 

Laura Anthony-Browne

+1 784 457 1746

ACCOUNTABILITY MECHANISM OF GREEN CLIMATE FUND

The Independent Redress Mechanism (IRM) is the independent complaint mechanism for a person or people who have been or believe they are likely to be adversely affected by a project or programme funded by the Green Climate Fund. If you submit a complaint to the IRM, it may seek to address the issues raised by facilitating a problem-solving dialogue or, if that is not possible, conducting an independent investigation into whether the GCF has complied with its environmental and social policies. The IRM is newly created and is still in the process of developing its procedures and website. More information about the IRM and how you can file a complaint is forthcoming. You can contact the IRM at irm@gcfund.org.