December 1 (Renewables Now) - The Inter-American Development Bank (IDB) announced on Thursday it will give Colombia a USD-300-million (EUR 252.1m) loan to improve the sustainability and efficiency of its energy sector.
The IDB loan has an 8-year term, with an 8-year grace period and an interest rate based on LIBOR. The executing agency will be Colombia’s Ministry of Finance and Public Credit, together with the National Planning Department and the Ministry of Mines and Energy, IDB said.
The money will be used for the implementation of a series of policy reforms to ensure an efficient electricity supply in the National Interconnected System as well as to increase the access to electricity in Colombia’s Non-Connected Areas, reducing the vulnerability of the power sector to climate change.
The programme will diversify the energy mix with non-conventional renewable sources and establish more power sharing arrangements with other nations, among other things, IDB noted.
(USD 1 = EUR 0.840)