FINANCING OPTIONS FOR REGIONAL
SUSTAINABLE ENERGY PROJECTS
Launch/Planning Meeting REETA Project
Georgetown, GUYANA
February 10 – 12, 2014
T. Williams-Robertson
Head, Renewable Energy/Energy Efficiency Unit
Office of Vice-President, Operations
February 12, 2014
CDB Purpose
Regional Members
Borrowing Member Countries









Anguilla
Antigua and Barbuda
Bahamas, The
Barbados
Belize
British Virgin Islands
Cayman Islands
Dominica
Grenada





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



Guyana
Haiti
Jamaica
Montserrat
St. Kitts and Nevis
St. Lucia
St. Vincent & the Grenadines
Suriname
Trinidad and Tobago
Turks and Caicos Islands
3
Other Regional Members
Colombia
Mexico
Venezuela
5
Non-Regional Members
Canada
China
Germany
Italy
United Kingdom
6
CDB & Sustainable
Development
• Climate Resilience Strategy 2012
• Creation of Environmental
Sustainability Unit 2012
• DFID assistance for:
• Climate Finance Advisor in
VPO’s office Jan 2013
CDB re-focus on
• Adaptation Mainstreaming
Sustainable
Consultancies
Development
• Further collaboration with 5C’s
on Regional Implementation
Plan
Climate Resilience Strategy
CDB’s Climate
Resilience
Strategy
facilitates
Collaboration,
Mobilisation of
concessionary
financial resources
BMCs transition
to a path of
sustainable low
carbon
development
• climate resilient
investment advancing
EE/RE
• regional capacitybuilding
Climate Resilience Strategy (2)
Strategy
facilitates
Energy
efficiency:
• Increase in Competitiveness of private
sector
• reduction in cost of goods/services
produced
• price advantage
Regional Energy Sector
Regional
Energy
Sector
• Heavy dependency on fossil
fuels
• High and volatile fuel oil prices
• Relatively tiny contribution of
renewables in the energy mix
and declining; exception is Barbados in
solar water heating sub-sector
• Absence of economies of scale
• Improving, still insufficient
knowledge sharing
CDB Response RE/EE
RE/EE in
Sustainable
Development
• Transitional Renewable Energy
& Energy Efficiency Unit
established Jan. 2014 in
VPO’s office
• Development of CDB Energy
Policy imminent
• On-going support from Special
Development Fund and other
Funds being discussed.
Target Energy Sector
• Increase private sector
investment - for expansion in RE,
EE – Financial Intermediaries
Target Energy
Sector
• Quick wins -Energy Efficiency
• Harmonised Regulatory
Framework
• Interconnection Policies –
• facilitate sale of excess power to
grid
• economies of scale
• Continuous capacity building
Global Funds
Accessing Climate Finance
GEF Trust Fund
Grants (1991-2012)
Global
Caribbean
LDCF
SCCF
AF
Pilot Program
for Climate
Resilience
694 national projects
158 Projects
39 Projects
28 Projects
Total Pledges
USD 2.5 billion
USD 504 million
USD 135 million
USD 184 million
USD 1.3 billion
33 Projects
3 Projects
1 Projects
1 Project*°
Caribbean Program
USD 23.7 million
(grants)
USD 6.4 million
(grants)
USD 715,000
(grants)
USD 9.96million
(grants)
USD 60-75 million
(grants)
USD 36 million (other
concessional
resources)
* + one endorsed concept for Belize
° direct access project in Jamaica
CDB Own Resources to BMCs
• Ordinary Capital Resources;
– Country Strategies prepared 3-4
years
– Variable Interest Rate, currently
4%
• Special development Resources
(SDF)
– Agreed themes with contributors
– Concessionary rate 2.5%
EIB Climate Action Line of Credit
EUR 50mn (approx
US $65mn) approved and
signed Dec. 2011
TA GRANT EUR 4 mn
approved Dec 2013
Focus: Increased
resilience to
Climate Change
impacts
Interest rate subsidy
up to 50% of fixed EIB
rate to CDB
(up to 3%)
Financing up to 75% of total
project cost for climate action
EE, RE, Transport,
Forestry/land-use, low-carbon
technologies research,
Adaptation
EIB TA Support to CALC
Support CDB to enhance
climate action
policies/processes
Support BMCs potential
negative CC impacts
Capacity building climat
action
Preparatory studies
eligible CA projects
TA GRANT EUR 4 mn
approved Dec 2013
Component to support
CDB/EIB
liaison/approvals
EU1.5mn
Project preparation facility for
new projects EU 1.5 mn
Upstream prefeasibility/master plans EU 1
mn
EU-Caribbean Investment
Facility (CIF)
• CDB eligible to access CIF
resources as MDB
• CIF Funding available including
RE/EE:
– 10th EDF = EU 47 mn
– 11th EDF = EU 140 mn
• Participate in Technical Group Financial Institutions Group
(FIG)
Role of CTCS
Caribbean
Technological
Consultancy
Services
(CTCS)
Network
•
•
•
•
•
Energy audits
Capacity building
Bankable proposals
Support for design works
Regional consultation
workshops
• Proposed Collaboration
CDB/German Government/GIZ
expert assistance
OECS Sustainable Energy
• (Sub) Regional Energy
Efficiency Strategy (REES)
and Action Plan
USD 1.59 mn CDB
Grant to OECS
Secretariat
(Commission):
• National Strategies/Action
Plans
• Model Legislation – regulations,
rules for energy management
• Public Education and
Awareness on EE
OECS SETA Status (2)
• (Sub) Regional Energy
Efficiency Strategy (REES)
and Action Plan
USD 1.59 mn CDB
Grant to OECS
Secretariat
(Commission):
• National Strategies/Action
Plans
• Model Legislation – regulations,
rules for energy management
• Public Education and
Awareness on EE
PROPOSED SEEC
US$ 10 mn EUCIF/DFID/CDB
financed SEEC
proposed by
IDB for OECS
• CDB Support:
• Private sector pilot Financial Intermediaries
4* $0.5 mn Lines of Credit
• $2 mn of CDB Microfinance Guarantee
Scheme
• CTCS Network SEAP to
support RE/EE initiatives
FINANCIAL INTERMEDIARY PILOT
Already started and included in SEEC:
• USD 2 million CDB pilot with 4 OECS DFIs =
4*500K
• Concessionary SDF resources
• CTCS network leading on EAs
• Technical capacity-building FIs, Auditors,
Contractors, sub-loan clients
SEEC Scope
• Niche for early SEEC focus on:
–
–
–
–
retrofitting government buildings
MSMEs through FIs
Build Capacity Energy Auditors, FIs
Implementation Recs OECS/SETA Project
• GEF resources as counterpart for 3 OECS
countries
• Include arrangements for other donors to join
• CDB-financing for credit risk guarantee for
CDB lending through FIs
INITIATIVES
Various Regional Initiatives financed by Donors:
– CDB-financed OECS Sustainable Energy Technical Assistance
(SETA) Project
– CREDP project identification already undertaken, Program
extended.
– Sustainable Energy Audit Protocol developed, Energy Audits
launched – SLU, DOM through DFIs
– 5Cs EE Project –ANU, GRN, SLU, T&T launch Aug 2013
– REETA
– SIDS DOCK
This is our Region
Let us protect it for our future!
Thank You!
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