Tue | Jul 27, 2021

Jamaica eligible for subscription to green money from IDB, JICA

Published:Friday | March 23, 2012 | 12:00 AM

The Inter-American Development Bank (IDB) and Japan International Cooperation Agency (JICA) have agreed to provide up to US$600 million in financing for renewable energy and energy-efficiency projects in Central America and the Caribbean over the next five years.

JICA will be responsible for US$300m of the funds. The IDB indicated that the amount it spends would be determined as the project unfolds, but that its contribution from internal resources is also capped at US$300m.

The financing will be available to IDB member countries that are already eligible for JICA financing, including projects in Jamaica, Guyana, Suriname, Dominican Republic, Belize, Panama, Honduras, Costa Rica, El Salvador, Guatemala and Nicaragua, the bank said.

The agreement creates two co-financing schemes: joint-co-financing, in which the IDB will match the financing provided by JICA in each project; and parallel co-financing, in which each agency will separately finance specific components of an eligible project.

"We are considering potential projects in the areas of hydroelectric power plant rehabilitation, photovoltaic power generation, and installation of energy-saving facilities and equipment,'' said Toshitaka Takeuchi, energy specialist and technical contact for the agreement at the IDB's Energy Division.

"In addition, we will explore financing opportunities for geothermal power generation, considering its significant potential in the region."

The agreement was signed March 16 during the IDB's annual meeting by IDB President Luis Alberto Moreno and JICA Senior Special Adviser Hiroto Arakawa.

"JICA will provide US$300 million in concessional financing for the facility, which could potentially mobilise another US$300 million from the IDB's own resources if all projects are financed under the joint co-financing scheme," said the IDB release.