With the cost of oil imports rivalling the cost of education, Prime Minister Freundel Stuart said yesterday he was placing renewable energy on the front burner.
Stuart made the cost comparisons yesterday as he announced two Inter-American Development Bank (IDB) Loans – one for US$10 million to set up an Energy Smart Fund and the other for $30 million to help preserve Barbados’ beaches.
The IDB anticipates that the Energy Smart Fund could help generate savings of more than $280 million in ten to 15 years.
Stuart said he was “flabbergasted to discover that what we spend on the importation of oil can be compared with the amount of money we spend on education here in Barbados.
“That is a situation that is not satisfactory to us and therefore the issue of renewable energy is a front-burner agenda item for Barbados.”
More than $500 million – $526 982.239 – have been allocated in this year’s (2010-2011) estimates for education.
The Prime Minister said Government was aiming to reduce the island’s heavy dependence on imported fossil fuels over the next ten to 15 years by at least 30 per cent.
The sustainable energy investment project was designed to sensitise the population to the issue of energy conservation and energy use efficiency, he said.
“This project, which for all practical purposes is called a Smart Fund, is designed to put at the disposals of our households and businesses, our small and medium enterprises the kind of resources that will allow us to optimise our energy consumption and over time, to reduce our dependence on fossil fuels,” he said.
The US$30 million loan will be used to support a coastal risk assessment and management programme.
This loan is to help improve management of coastal risk data and build additional infrastructure to control shoreline erosion. It is designed to improve this country’s resilience to climate change and other hazards and assist public access to beaches.
At yesterday’s announcement, visiting IDB president Luis Alberto Moreno said the IDB was firmly committed to a strong partnership with Barbados.
“This visit is an opportunity for the IDB to reaffirm its support for Barbados and to discuss how we can continue to respond effectively to the country’s development needs,” he said.
According to IDB?calculations, savings to be generated by the Smart Fund and other initiatives under Barbados’ sustainable energy framework are expected to total at least US$283 million over the next ten to 15 years, reducing CO2 emissions by more than 4.5 million tons over the same period.
In relation to the coastline risk programme, the Prime Minister said that issues such as coastal erosion were of concern to his Government, particularly as Barbados was a tourist destination.
Both loans are for a 25-year term, with a five-year grace period from the date of signature.
The current five-year IDB?country strategy with Barbados lists sustainable energy, coastal zone management and climate change adaptation, water and education as four priority areas for IDB?financing between 2009 and 2013.
