The Energy Sector in Suriname is set to benefit from a loan valued at US$50M approved by the Caribbean Development Bank’s (CDB) Board of Directors on Monday.

The Policy-Based Loan to the Republic of Suriname was provided to urgently address the country’s fiscal imbalances, through support for energy sector reforms.

Suriname has already begun implementing a series of institutional, policy and legislative reforms to stabilise the economy, primarily to address the challenge of a weak operational, policy and regulatory environment in the energy sector. CDB’s loan assists the Government of Suriname with its adjustment programme.

 CDB recognises the urgent need for significant reform within Suriname’s energy sector, which has tremendous potential to transform the economy,” said Dr. Justin Ram, Director of Economics, CDB.

Dr. Ram said the loan signalled a collaborative effort to build a sustainable and efficient power sector in Suriname, which can provide an enabling environment to improve competitiveness and improve the prospects for private sector-led growth.

CDB’s support complements the Inter-American Development Bank’s (IADB)‘s ongoing contribution to the institutional and operational strengthening of Suriname’s energy sector. The loan is being provided to Suriname on the basis of a shared policy matrix with IADB under the existing programme between the Government of Suriname and IADB.

The loan aligns to CDB’s Country Strategy Paper for Suriname 2014-2018, which supports the development of legislative, regulatory and institutional reforms in the power sector, and the expansion of physical infrastructure to meet the electricity needs in rural and urban areas.

Read more at: CDB