The Tribune

By EARYEL BOWLEG

Tribune Staff Reporter

ebowleg@tribunemedia.net

BAHAMAS Power and Light and the Inter-American Development Bank have signed a $90m loan agreement to modernise the state utility’s operations, the first time the government has designated BPL as the direct borrower for a major international loan.

The loan carries a 25-year amortisation period with a 5.5-year moratorium on repayment. Repayments begin 66 months after signing, with a variable interest rate tied to the Secured Overnight Financing Rate and an added bank margin.

Prime Minister Philip “Brave” Davis said the programme is built around three components aimed at long-standing issues facing families and businesses.

The largest component, valued at $81.39m, focuses on digitalisation and system modernisation. He said customers have pushed for faster outage response, clearer billing, and more reliable service, and these challenges are now being tackled with advanced tools such as digital meters that offer more accurate and transparent insight into household energy use.

”This helps families manage their monthly costs and gives BPL real-time data to detect problems before they become widespread. SCADA systems will be expanded across New Providence and the Family Islands, offering real-time visibility of operations. This is essential for an archipelago, where each island has unique needs and challenges,” he said.

“An Outage Management System will allow BPL to pinpoint issues faster and restore power with far greater efficiency. A full Geographic Information System will guide long-term planning and support more strategic maintenance.”

“Control rooms will be modernised to meet international standards, giving our technicians the tools needed to react quickly and keep the grid stable. This loan also allows BPL to purchase critical transmission equipment that supports the safe and reliable integration of renewable energy. Across several islands, solar and hybrid microgrid projects are moving forward with private sector partners. To bring these projects onto the grid in a safe and stable way, we need modern transmission systems. This investment makes that possible.”

The second component, valued at $3.7m, focuses on strengthening BPL’s institutional capacity. Mr Davis said it supports improved planning, stronger financial management, better risk oversight, and advanced data analytics. It also funds staff development, training, enhanced governance, and pre-feasibility studies for future programmes.

The third component, at $4.4m, supports the administration and oversight of the loan, including project coordination, monitoring, evaluation, and compliance with international standards.

Energy Minister JoBeth Coleby-Davis said the loan will drive a major modernisation effort, including the completion of BPL’s digitalisation programme, the purchase of equipment to support Family Island projects, and the expansion of internal capacity for digitisation and enterprise risk management.

“As Minister of Energy and Transport, I am advised that the lion’s share of the funding will go toward the digitalization programme. At the core of this transformation is the move to Advanced Metering Infrastructure (AMI). AMI will involve both the installation of new metering systems at BPL’s headquarters and the replacement of over 115,000 meters around the country,” she said.

Shirley Gayle, IDB country representative, said the bank believes in projects that don't just make headlines but change lives.

“This is more than an energy project. It is a foundation for a Sustainable industry that creates jobs, attracts investment, and builds a future of opportunities. I have a word for the people of The Bahamas that the IDB reiterates his commitment to walking the path with you. We're walking the path with your service provider.”

“We're walking the path with the government, with the Ministry of Finance and all the other stakeholders involved. Together, we're not just improving service. We are shaping a new era in The Bahamas of resilience and sustainability.”

BPL chairperson Christina Alston said expanded on the advanced metering infrastructure, which will allow BPL to detect outages and customer issues in real time while giving users clearer insight and greater control over their energy consumption. It is expected to help customers anticipate bills and enable BPL to identify and resolve outages more quickly, improving reliability and resilience across the grid.

The metering rollout is projected to take between 16 and 36 months, with the first meters likely to be installed by the end of next year.

A request for information to pre-qualify companies under IDB rules is expected in January, followed by a response window and a request for proposals.

The rollout will unfold in two phases, beginning in denser communities while allowing flexible expansion based on GIS data and communication needs. The aim is real-time, two-way communication with customers across the grid, supported by new community meters and upgraded equipment in New Providence.