The Multilateral Investment Fund, a member of the IDB Group, has approved a US$1.69 million loan that will help poor communities in Suriname access clean and reliable energy. This project will allow 10,000 low income people, mostly from Maroon and Amerindian groups, to receive sustainable energy through small hydro and solar installations. Additionally, the project will also address existing institutional, regulatory and economic barriers in order to facilitate the sustainable provision of energy in the country. This initiative will be implemented by the Government of Suriname, with support from the MIF and the Global Environmental Facility (GEF).

The MIF will assess the socio-economic conditions of the targeted communities and their energy demand forecasts. It will also train both government authorities and local communities in the proper operation and maintenance of the systems, (20 per cent of those trained will be women); and will support capacity building and awareness campaigns to engage the communities in all stages of the project.

The project exemplifies the MIF’s mandate regarding piloting innovative, market-driven business models for the provision of basic services to poor populations. The multiple elements which make it both a challenge and an ideal intervention for the MIF include: the promotion of green energy technologies; working with the most vulnerable communities, community participation in all project activities and decision-making; the design and implementation of economically sustainable business models to promote alliances with the private sector, local communities and government; and the collaboration with key partners to support the project’s expansion elsewhere in the country.

Expected results in the targeted communities include not only greater access to clean energy, but also a projected 20 percent increase in the income of micro-enterprises and small businesses. The project also aims to have 80 percent of the installed systems operated, maintained and managed in an economically sustainable way, with cost-recovery methods in place.

Source: http://www5.iadb.org/mif/home/news/pressreleases/pasurinameenergy.aspx