IDB Supports Energy Efficiency in Public Sector

The Ministry of Finance and the Public Service and the Inter-American Development Bank (IDB) have signed an agreement for a grant to fund an Energy Efficiency and Conservation Technical Assistance programme, valued at US$437,500.

The agreement was signed at the Ministry's Heroes Circle office on Friday, August 21, 2009. The objective of the programme is to support the Government's efforts to improve energy efficiency in the public sector, and provide the technical assistance to prepare a potential energy efficiency loan programme.

The country's energy costs for last year totalled approximately US$2.7 billion, with public sector consumption accounting for 20 per cent of that amount, or over US$540 million. Earlier this year Prime Minister, the Hon. Bruce Golding, gave the directive that the public sector cut its energy consumption by 15 percent. The programme aims to achieve this goal and, if the target is achieved, the country could save US$81 million.

Speaking at the signing, Minister of Finance and the Public Service, Hon. Audley Shaw, said it was important that the Government leads the charge in conserving energy.

"Government, as you know, is virtually the largest business in town and so Government needs to lead by example in terms of energy efficiency," he said.

Mr. Shaw added that energy efficiency would also result in increased foreign exchange savings for the country.

"So the more we conserve, is the less stress that we have all around. We need conservation for savings, so that we can divert resources to other critical areas of public sector financing and, of course, conservation means that for every kilowatt hour of energy that we save it is foreign exchange that is being saved that would otherwise be required," he expounded.

IDB Country Representative, Gerard Johnson, said the bank is pleased to have found the technical and project management capacity in the Ministry, which has made it possible for it to become the implementing agency.

Mr. Johnson said that, if the project succeeds, it will generate savings that will not just service the loan, but it will provide income for the Government.

"In other words, the amount that is being paid now by the public sector will be cut so dramatically, that it not only will cover the cost of servicing the loan, but it will also provide additional funds for the county to use in other areas," he said.

The Energy Efficiency and Conservation Technical Assistance programme has five components: evaluation of energy consumption patterns for public sector buildings; cost assessment of public sector energy consumption; cost/benefit analysis of retrofitting buildings and public sector energy demand, with energy efficient equipment; investment plan for energy efficient equipment installation; and definition of a terms of reference for an energy services company.