PROJECT IDENTIFICATION FORM (PIF)
PROJECT TYPE: MSP
THE GEF TRUST FUND
Submission Date: January 16, 2009
Re-submission Date:
PART I: PROJECT IDENTIFICATION
GEFSEC PROJECT ID1: xxx
GEF AGENCY PROJECT ID: BH-X1001
COUNTRY(IES): The Bahamas
PROJECT TITLE: Promoting Sustainable Energy in the Bahamas
GEF AGENCY(IES): IADB
OTHER EXECUTING PARTNER(S): MINISTRY OF ENVIRONMENT
OF THE BAHAMAS
GEF FOCAL AREA (S): Climate Change,
GEF-4 STRATEGIC PROGRAM(S): SP1 and SP3
NAME OF PARENT PROGRAM/UMBRELLA PROJECT:N/A
INDICATIVE CALENDAR
Milestones
Expected Dates
Work Program (for FSP)
CEO Endorsement/Approval
GEF Agency Approval
Implementation Start
Mid-term Review (if planned)
Implementation Completion
N/A
May - 09
May - 09
July - 09
N/A
June -2011
A. PROJECT FRAMEWORK (Expand table as necessary)
Project Objective: The general objective of the this project is to promote and support the development and
implementation of sustainable energy sources in the Bahamas providing alternatives to reduce dependency on
imported fossil fuels. The specific objectives of this project are: (i) provide technical assistance to the
Government of the Bahamas (GoBH) to achieve EE in public buildings, residential sector and commercial
sectors, and implement demonstration projects, in particular the phaseout of incandescent lights by replacing
them with mercury free Compact Fluorescent Lamps (CFL); (ii) explore alternatives for RE and implement pilot
projects in RE; (iii) support the GoBH with a WE program; (iv) support the GoBH with a review of energy
legislation, regulatory and policy issues to promote sustainable energy as well as institutional strengthening in the areas
EE, RE and WE; and (v) dissemination of findings. GEF resources will finance the phaseout of incandescent lights by
replacing them with mercury free CFL and the pilot/demonstration projects in RE (solar photovoltaic panels) and EE in
representative parts of the Commonwealth as well as in key sectors of its economy.
Project Components
Inv,
TA,
STA
Expected Outcomes
Expected Outputs
US$
(000)
500
Component I
EE for public
buildings,
commercial and
residential sector
with the
implementation of a
demonstration
projects in EE, in
particular the
replacement of
incandescent by
Compact
Fluorescent Lamps
(CFL)
1
Indicative GEF
Financing*
TA
-Awareness of energy
efficiency in the public,
commercial and
residential sector is
increased.
-Potential for EE
identified
Inv
-EE benefits in terms of
energy and cost savings
are demonstrated in
lighting, public buildings,
ACs, etc
-Incandescent lightbulbs
are replaced by XX CFL
- X tons of CO2eq
emissions avoided
Project ID number will be assigned initially by GEFSEC .
- Participation of all the
interested institutions
and sectors in the final
presentation and
workshop in Nassau.
- Assessment of EE and
energy audits are
performed
-X number of
implemented
demonstration projects.
-energy and financial
savings quantified in
EE demonstration
projects
%
Indicative Cofinancing*
IDB + GoBH
%
US$
(000)
60
335
335
500
Total
US$
(000)
40
835
335
500
1
500
Component II
Assessment of the
RE potential, cost
and viable options
to include RE in the
energy matrix and
assessment of WE
potential including
the usage of used
cooking
oil
for
biodiesel
TA
- The feasibility of
different RE/WE
technologies participation
in the energy matrix of
BH is demonstrated.
Inv
- feasibility of effectively
substitute fossil fuel
energy with RE at
residential and small
utility scale (solar
photovoltaic panels with
net metering connected to
the grid) demonstrated
- X tons of CO2eq
emissions avoided
-Capacity to assess the
financial and operational
uses of RE is built
-Bahamas Electricity
Corporation (BEC)
includes RE in its
expansion plan
- National Energy policy
includes RE, EE and WE
Component III –
Strengthening the
Energy Sector in the
Bahamas
TA
Component IV:
Institutional
Strengthening,
analysis of the
regulatory
framework and
integration and
capacity building in
the areas EE, RE
and WE
TA
-Capacity created in RE, EE,
and WE
- Guidelines and
recommendations for
WE usage
- Assessment of
available resources for
RE projects
-Wind, solar, bioenergy
and Ocean Thermal
Energy Conversion
(OTEC) resources
assessed on several
family islands and the
cost for implementation
assessed
- WE potential and
projects assessed
-Plan of action on how
to incorporate RE and
WE in the energy
matrix designed
including viable RE and
WE alternatives
-X number of
implemented
demonstration projects
-XX kW installed and
delivering power to the
grid
56%
385
385
44%
500
885
385
500
- Bahamas Energy
sector strengthened
- Alternatives for the
expansion of the energy
sector including RE are
prepared
0%
485
100%
485
-Recommendations and
guidelines for
legislation, regulatory
and policy options to
promote RE, EE and
WE, in a national
energy policy
framework is prepared
-National Energy Policy
prepared
- Gap analysis for
institutional
strengthening in RE,
EE and WE, prepared
- X training sessions for
relevant stakeholders
and government
officials
0%
390
100%
390
2
Component V
Dissemination of
findings
-Public awareness built by
presenting results of this
project
- At least 2 workshops
made to present the
results of EE and PE
projects, present best
practices and promote
public participation
Project Management Monitoring, audits and contingencies
1,000
Total project costs
0%
37.5
100%
37.5
0%
180
100%
180
1,812.5
64%
2,812.5
36%
B. INDICATIVE FINANCING PLAN SUMMARY FOR THE PROJECT (US$(000))
Project Preparation*
GEF
Co-financing
Project
0
Agency Fee
1,000
1,812.5
2,812.5
Total
Total
100
1,100
100
1,812.5
2,912.5
* Please include the previously approved PDFs and planned request for new PPG, if any. Indicate the amount already approved as
footnote here and if the GEF funding is from GEF-3.
C. INDICATIVE CO-FINANCING FOR THE PROJECT (including project preparation amount) BY SOURCE and
BY NAME (in parenthesis) if available, (US$)
Sources of Co-financing
Type of Co-financing
Government Counterpart for
IDB/SECCI
Government Counterpart for
IDB/Infrafund
GEF Agency(ies) IDB/SECCI
GEF Agency(ies) IDB/Infrafund
Total co-financing
Amount (US$000)
Cash
187.5
Cash
175
Grant
Grant
750
700
1,812.5
D. GEF RESOURCES REQUESTED BY FOCAL AREA(S), AGENCY (IES) SHARE AND COUNTRY(IES)*
N/A
PART II: PROJECT JUSTIFICATION
A. STATE THE ISSUE, HOW THE PROJECT SEEKS TO ADDRESS IT, AND THE EXPECTED GLOBAL ENVIRONMENTAL
BENEFITS TO BE DELIVERED:
The commercial electricity generation system in Bahamas is based entirely on thermal plants powered by
petroleum products. The larger units plants are operated by the Bahamas Electricity Corporation (BEC) a
publicly owned utility company and a private sector company based in Grand Bahama. The government owned
public corporation is responsible for the generation, transmission and distribution of electricity across most of
the Bahamas, serving approximately 85% of all electricity consumers in the nation. Although approximately
60% of the country's population resides on New Providence Island, the capital city of Nassau, BEC’s area of
supply extends to all of the major islands of the Bahamas with the exception of Grand Bahama and Inagua
Islands. BEC operates 29 generating plants (28 diesel engine stations and 1 gas turbine power station) with an
installed capacity of 438MW, providing service to approximately 98,000 customers.
The Grand Bahama Power Company supplies electricity on the island of Grand Bahama serving some 40,000
consumers using diesel and turbine engines.
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The Bahamas, as any of the Caribbean islands, could benefit significantly, by incorporating Renewable Energy
(RE) as well as Waste to Energy (WE) and Energy Efficiency (EE) programs into its energy matrix. Not only
the imports of fossil fuels would drop, generating important savings to the nation, but also carbon emission
would decrease, which could generate an interesting potential to sell carbon emission reductions (CERs),
through the Clean Development Mechanism (CDM) developed under the Kyoto Protocol. This project will
assess the potential for carbon emission reduction although it will not finance the preparation of Project Design
Documents (PDDs) or similar instruments to trade carbon credits.
The Bahamas have renewable resources that could generate electricity, such as solar and wind power, waste,
and ocean thermal energy. The Technical Assistance (TA) provided under this project will: (i) study and
quantify the renewable resources across the Bahamas and explore their uses in key sectors and in economic
activities; (ii) explore the options and costs for implementation of selected renewable technologies; and (iii)
provide a set of alternatives to help the Government of the Bahamas (GoBH) and BEC in their decision making
process to achieve sustainable energy (environmental, technical and financially) in the country. In a parallel
effort, the IDB is providing technical assistance to the BEC to improve the financial status of the company and
analyze options for an expansion plan that could include RE.
As a response to the GoBH´s request for TA to the IDB, the IDB has approved a Technical Cooperation (TC)
project (US$700,000), financed by the IDB´s Infrastructure Fund (Infrafund) to achieve the sustainability of
BEC by upgrading and strengthening BEC’s institutional, operational and financial capacity, providing
alternatives to minimize the Bahamas’ dependency on fossil fuels. This TC will contribute to sustainability of
BEC in order to prepare the company for a potential refinancing of its debt or financing its future capital
investment program without a government guarantee. In addition, the Sustainable Energy and Climate Change
Initiative (SECCI) will provide US$750,000 to carry out a resource assessment for RE, determine potential for
EE and WE and review, recommend and prepare energy legislation, regulatory and policy studies. The proposed
GEF project in addition to the Infrafund and SECCI technical assistance, will provide the GoBH the tools and
information required for decision making, in particular through design and implementation of demonstration
programs in EE and RE which will lead to an investment loan for BEC, estimated in US$ 50 million, to
refinance the company and include RE technologies in their expansion plan.
The project has five components, which are here described:
Component 1: EE for public buildings, commercial and residential sector: This component will provide TA to:
(i) assess energy uses and electricity consumption patterns, (ii) adapt energy audit protocol and procedures to
standardize energy audits in the Bahamas; (iii) conduct EE surveys and audits for public buildings, residential
and commercial sector, and determine the cost for new EE appliances, public lighting, EE cooling systems, etc;
and (iv) design of a financial instrument to promote EE. With GEF funding the project will design and
implement a pilot project for EE, in one of the following sectors: public buildings, residential and commercial
sector (including tourism sector). The alternatives for pilot project are change of lightings, solar water heaters,
and change of electrical appliances in general. The EE demonstration project will also focus in the phase out of
incandescent light through their replacement by mercury free Compact Florescent Lamps (CFL). The project
(with SECCI resources) will also finance studies to determine if a market approach is the most feasible option
for expanding the use of EE.
Component 2: Assessment of the Renewable Energy potential, cost and viable options to include RE and WE
in the energy matrix: This component will: (i) assess the potential for RE especially for WE, OTEC, solar and
wind applications, analyze the best options for electricity generation with RE and support the preparation of the
RE policy; (ii) determine cost of implementation of these RE technologies; (iv) establish a prioritized plan of
action to include RE in the energy matrix of the Bahamas; (v) support the preparation of a WE assessment that
will identify the possible options to obtain energy from landfills and other sources of waste; and (vi) identify
potential for bioenergy production, including the potential to develop a biodiesel market from recycled cooking4
oil from cruises and the tourism industry. The GEF funds will finance the design and implementation of a pilot
project for RE, mainly for Solar Photovoltaic (PV) panels, not excluding other viable RE and WE options that
could be identified. Net metering will be considered as a part of the pilot project, to clearly identify the power
sold/purchased from IPPs to/from utilities. The project (with SECCI resources) will also finance studies to
determine if a market approach is the most feasible option for expanding the use of PV in households around
the Bahamas.
Component 3: Strengthening the Energy Sector in the Bahamas: This Component is designed to: (i) review the
results of the financial audit made to BEC; (ii) assist BEC in improving its operational and financial
management (e.g, establishment of indicators for measurable improvements of operational efficiency, tariff
structure, including technical and commercial losses, thermal generation efficiencies, increased collection
ratios) in order to strengthen the capacity to service debt; (iii) based on the results of the review, analyze
alternatives on how to improve BEC’s cash management, and (iv) prepare a strategic pipeline that includes
refinancing options, future financing needs for expansion of its system and financial viability for BEC’s long
terms investments (analyzing and prioritizing projects). This component will also explore alternatives for BEC’s
expansion plan specifically including RE through (v) assess BEC’s expansion plan, including the potential
diversification of their energy matrix by using RE; (vi) prepare a prioritized list of projects; (vii) determine cost
of implementation of RE technologies; and (viii) establish a prioritized plan of action to include RE in the
energy matrix of the Bahamas.
Component 4: Institutional Strengthening and capacity building in the areas of EE, RE and WE: This
component will: (i) provide TA to review and recommend legislation, regulatory and policies issues to adopt EE
measures in public buildings, residential and commercial sector (including tourism sector); (ii) provide TA to
review and recommend legislation, regulatory and policy issues to integrate RE and WE and traditional energy
(diesel, fuel oil and eventually NG, if it is available) in the energy matrix of The Bahamas; (iii) provide the
GoBH with training and capacity building to prepare energy conservation plans, prepare RE and WE programs
to reduce their dependency of fossil fuels, train energy audits, energy technicians and operators to erect, operate
and maintain RE technologies; and (iv) with the information gathered and generated in the previous components
this subcomponent will support the preparation of the National Energy Policy and the reformulation of the
Bahamas Electricity Act.
Component 5 Dissemination of findings: Under this component will be finance at least two workshops to
validate and disseminate the findings of the technical studies and pilot projects, helping The Ministry of
Environment (MOTE) to identify the interested sectors (the affected community in particular) and develop
communication and participation strategies during project development and implementation. The MOTE in
coordination with the GoBH, will implement a long-term public education and awareness strategy for
sustainable energy in the country.
The global environmental benefits of this project will be XX tons of CO2eq emissions avoided through the EE
component and YY tons of CO2eq emissions avoided through the RE component.
B. DESCRIBE THE CONSISTENCY OF THE PROJECT WITH NATIONAL PRIORITIES/PLANS:
This project is highly consistent with the national priorities and plans for The Bahamas both in terms of its
focus and its nature. The country has seven principal areas of strategic focus in the energy sector : (i) economic
efficiency; (ii) EE; (iii) energy conservation; (iv) clean energy; (v) diversification and security of energy supply;
(vi) RE; and (vii) meeting the energy needs of the poor. This project is consistent with numerals (ii) through (vi)
because it will assist the GoBH to develop a National Energy Policy; strengthen BECs technical and financial
capacity; develop RE alternatives; achieve EE in public buildings, residential sector and commercial sectors
and will help to diversify the energy matrix to reduce dependency on imported fossil fuels
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C. DESCRIBE THE CONSISTENCY OF THE PROJECT WITH GEF STRATEGIES AND STRATEGIC PROGRAMS:
This project is consistent with GEF Strategic Program1 (Promote EE in residential and commercial Buildings)
and GEF Strategic Program 3 (Promote market approaches for RE).
D. OUTLINE THE COORDINATION WITH OTHER RELATED INITIATIVES:
This project will coordinate with the ongoing activities of the Organization of American States (OAS) in the
Bahamas for energy, to avoid duplication of work.
E. DISCUSS THE VALUE-ADDED OF GEF INVOLVEMENT IN THE PROJECT DEMONSTRATED THROUGH INCREMENTAL
REASONING :
The value added provided by GEF, basically the pilot implementation of technologies, measures and programs
to achieve EE and RE, are essential. Without the pilot investments the project wouldn’t be able to build a
reliable and convincing case that with EE and RE programs, the Bahamas can save energy, diversify their
energy matrix with RE and reduce to some extent the imports of expensive fossil fuels (fuel oil and diesel). In
order to change the current situation with a 100% fossil fuel energy matrix to an energy matrix that includes RE
an EE, a pilot project phase is an important step to provide in-country experiences such as procurement,
implementation, operation and maintenance of EE and RE technologies.
The demonstration projects will show the economical benefits due to the savings in fossil fuels. From the
environmental point of view the project will generate carbon emission reductions, as well as reductions in
critical atmospheric contaminants such as NOx, SOx, particles, and CO2, as less fossil fuel will be required.
The TA provided by the IDB, the local counterpart from the GoBH and GEF funding will provide the necessary
tools to achieve sustainable and affordable energy, incorporating RE in the energy matrix and hence reducing
the dependency on imported fossil fuel.
F. INDICATE RISKS, INCLUDING CLIMATE CHANGE RISKS, THAT MIGHT PREVENT THE PROJECT OBJECTIVE(S) FROM
BEING ACHIEVED, AND IF POSSIBLE INCLUDING RISK MEASURES THAT WILL BE TAKEN:
RE and energy conservation in general are strongly correlated to the price of oil. If the price drops so does the
interest to adopt EE measures or implement RE technologies. Given the volatility of the oil price, the GoBH has
decided to go ahead with the proposed project even if the price of oil is low to reduce dependency of foreign oil,
diversify the energy matrix and prepare the country for a future scenario with high oil prices.
Since The Bahamas is in the tropical cyclone belt, the installed equipment for pilot projects purchased with GEF
funds could be impacted or destroyed. The study will minimize this risk by examining multiple sites and
developing contingency measures with the local project team to minimize the damage and protect the
equipment.
G. DESCRIBE, IF POSSIBLE, THE EXPECTED COST-EFFECTIVENESS OF THE PROJECT:
Given the early stage of this Project Identification Form (PIF), the cost effectiveness has not yet been estimated.
In the course of project preparation, the project team will evaluate the project savings using the estimated
energy savings (by adopting EE measures), operational savings (by incorporation RE and WE) and invested
US$/ CO2eq emissions avoided method and will demonstrate that the interventions chosen are the most cost
effective against other alternatives.
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H. JUSTIFY THE COMPARATIVE ADVANTAGE OF GEF AGENCY:
The IDB is very active in the Caribbean region, particularly in Barbados, Jamaica, Guyana and Suriname, in the
topics of EE, RE, Bioenergy and WE, therefore the IDB has a comparative advantage that will be useful for the
Bahamas. In addition, the IDB is also supporting the GoBH through MOTE, with additional TA, financed by
the Infrafund and SECCI to improve the financial and operational performance of BEC, as well as, provide
options to include RE in the country’s energy matrix. TA also includes elements directed at national efforts to
develop an energy policy, build capacity to assess and conduct EE audits and disseminate best practices. All the
resources will be used in parallel, SECCI and Infrafund will finance all the assessments and studies and the
GEF the implementation of the demonstration projects. The combined TA and a possible IDB loan to refinance
BEC and support the company’s expansion plan with RE, is a very important value added of this project.
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PART III: APPROVAL/ENDORSEMENT BY GEF OPERATIONAL FOCAL POINT(S) AND GEF
AGENCY(IES)
A. RECORD OF ENDORSEMENT OF GEF OPERATIONAL FOCAL POINT (S) ON BEHALF OF THE GOVERNMENT(S):
(Please attach the country endorsement letter(s) or regional endorsement letter(s) with this template).
Mr. Philip S. Weech
Director of the Bahamas Environment,
Science and Technology Commission (BEST)
GEF Operational Focal Point
The Bahamas
Date: October 10th, 2008
(Enter Name, Position, Ministry)
Date: (Month, day, year)
B. GEF AGENCY(IES) CERTIFICATION
This request has been prepared in accordance with GEF policies and procedures and meets the GEF
criteria for project identification and preparation.
Mr. Ricardo Quiroga
IDB/GEF Coordinator
Date: January 16th, 2009
Mr. Christiaan Gischler
Project Contact Person
Task manger BH-X1001
Energy Specialist Energy Division
Tel. and Email: (202) 623 3411 –
christiaang@iadb.org
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