Energy Sector in Trinidad and Tobago to Benefit from USD40 mn CDB Loan

The Government of Trinidad and Tobago has received a USD40 mn Policy Based Loan (PBL) from the Caribbean Development Bank (CDB) to assist in reinforcing policy changes in the energy sector, within the context of a sustainable energy programme which the country embarked on in 2011. A PBL is a special product from the Bank which offers resources at extremely low interest rates.

The sustainable energy programme is designed to enhance the ability of the regulatory and legal framework to achieve efficiency, transparency and accountability; promote environmental sustainability of alternative energy fuels; and spur the efficient and rational production of fossil fuels.

Approved by the Bank’s Board of Directors on Thursday, December 11, the PBL will also help the government to fill an important gap in relation to its revised Compressed Natural Gas (CNG) Programme.

Trinidad and Tobago’s CNG programme promotes the increased use of cleaner and less costly energy fuels by improving system efficiency and enhancing access to end users in the transportation sector. It will also result in a number of benefits to the government. These include the gradual reduction of the fiscal burden associated with the high cost of fuel subsidies, and gradual increase of foreign exchange earnings through exports of displaced fuels.

The PBL will be used to support Trinidad’s conversion of the fuel usage of vehicles in the transport sector from diesel and gasoline to Compressed Natural Gas (CNG). This will have positive impacts for the country through a reduction in the fiscal burden of rising fuel subsidies and also improve the environment via the switch to cleaner burning natural gas.

CAPTION: Mr. Clint Ramcharan, Director for Trinidad and Tobago (left) with CDB President, Dr. Warren Smith.