5 December 2012: The Inter-American Development Bank (IDB) is providing Suriname a US$15 million Policy Based Programmatic (PBP) loan to reform its power sector and its governance, increase the efficiency of current plants, diversify its energy mix with renewable energy sources and improve power supplies to remote areas.

One component of the loan will focus on an integrated policy and regulatory framework to govern Suriname’s energy sector, starting with a diagnostic “Green Paper” to be developed through consultations with all relevant stakeholders, and followed by the introduction of a legal framework instrument. The IDB will also help set up a government agency dedicated to energy issues and will support undertaking technical assessments to ensure the incorporation of environmental dimensions into the energy sector framework.

Another component of the loan will aid in designing and implementing strategies and plans to incorporate on-grid and off-grid renewable energy sources for electricity generation, such as hydropower or solar, to diversify Suriname’s energy mix from its current heavy dependence on imported fossil fuels, and in the process lowering the country’s carbon emissions. A key focus of the renewable energy development effort will be provide power to villages in Suriname’s interior, some of which are off-grid or currently do not receive 24-hour power service. The loan will also help Suriname to make its existing power plants and distribution system more energy efficient.

The IDB is currently working with the Government of Suriname to gain approval of complementary projects by the IDB’s Multilateral Investment Fund (MIF) and the Global Environment Facility (GEF). [IDB Press Release]