Presentation delivered by S. Brian Samuel, Public-Private Partnership Coordinator, CDB at the 18th Annual Platts Caribbean Energy Conference, held from January 25-26, 2018 at the Grand Hyatt Baha Mar, Nassau, The Bahamas.

1. 18th Annual
Caribbean Energy Conference
Panel Discussion: Financing for Small
Countries
S. Brian Samuel
Head of Public-Private Partnerships (PPPs)
Caribbean Development Bank
January 25–26, 2018, Grand Hyatt, Baha Mar, Nassau, Bahamas

2. AGENDA
• Challenges of PPPs in the Caribbean
• Jamaica’s renewable energy auctions: A replicable
model for utility-scale RE
• Public/Private Partnerships: What is CDB doing?
– Regional Support Mechanism (RSM)
– PPP Helpdesk
– PPP Toolkit
• CDB financing for RE/EE projects:
– Sustainable Energy for the Eastern Caribbean (SEEC)
– Climate Action Line of Credit (CALC)
– CDB GeoSmart Initiative
– Canadian Support to Energy Sector in the Caribbean

3. “The Seven
Deadly Sins
of PPPs”
1. Lack of technical capacity: key barrier to
PPPs in the Caribbean
2. Mistakes in risk allocation invariably fall
into the government’s lap
3. Too many BMCs enter into PPPs without
sound technical/legal/financial advice
4. Small size: Most islands are below the
radar screen of global investors
5. PPPs quickly become political hot
potatoes
6. Too many unsolicited proposals
7. Lack of funding for project preparation

4. In PPPs,
Jamaica
leads the
way
• Starting with Montego Bay Airport in 2003,
Jamaica has implemented several large,
transformative PPPs (ports, highways, RE)
• Mature PPP Policy and capacity in PPPU
• As a result, Jamaica leads in private
infrastructure investments:

5. Jamaica’s
RE auctions
led to boom
in capacity
• CDB case study* on Jamaica’s RE Auctions
• A model for utility-scale private RE projects
• Jamaica’s RE at 16%, highest in Caribbean
• RE drive started by GOJ/PCJ, to prove the theory
• After which, the private sector piled in:
* http://www.caribank.org/uploads/2014/05/Booklet-Public-Private-Partnerships-in-the-Caribbean-Building-on-Early-Lessons.pdf
Project Megawatts Investors
Wigton I (wind) 20.7 Petrojam / GoJ
Wigton II (wind) 18.0 Petrojam / GoJ
Wigton III (wind) 24.0 Petrojam / GoJ
BMR Wind 36.3 BMR Energy / Branson
Content Solar 20.0 WRB Enterprises
Eight Rivers Solar
33.1 Rekamniar Ventures / Neoen
Total Renewable Energy 152.1 = 16% of installed capacity

6. Lessons of
experience
from
Jamaica’s
RE auctions
• Government leadership is key: Requires political
will, technical capacity and financial commitment
• Competition is paramount: More bidders result in
better bids. Period.
• Multiple rounds: With each new auction,
Jamaica’s Office of Utility Regulation (OUR) learned
from experience, and got better at it
• Size matters: Bigger projects attract bigger, more
qualified investors
• Pre-negotiate the PPA: Include details on voltage,
frequency and transmission
• Involve the offtaker: Make sure the utility
participates fully in the bidding process
• Clear criteria: Evaluation criteria for winning bids
must be clear and transparent

7. CDB
support to
PPPs
• Regional Support Mechanism (RSM):
– PPP Helpdesk: Technical Assistance (TA)
interventions, in project development, Policy
and capacity building
– PPP Boot Camps: Trained senior public sector
employees, in PPP theory & practice
– Caribbean PPP Toolkit*: Open knowledge
resource on PPPs, tailored to Regional
environment and market conditions
– PPP Policy: Assisting governments implement
PPP policies and procedures that promote
transparency and competition
* https://issuu.com/caribank/docs/ppp_toolkit-interactive?e=21431045/49237432

8. CDB’s
financing
for RE/EE
projects
• Sustainable Energy for the Eastern
Caribbean (SEEC):
– US$21 million Pilot program for funding EE/RE projects in
government buildings in EC
– Public sector including EE/RE in government buildings and EE in
street lighting through retrofit with LED lamps.
– Blended financing: grant (EU-CIF; DFID) and loan from CDB
• Climate Action Line of Credit (CALC):
– EIB funding to CDB for Climate resilience, RE/EE, with interest
rate subsidy, available to public and private sector projects
• GeoSmart Initiative:
– CDB’s umbrella support to Geological Energy (GE)
– TA, Investments, grants, CRG, & concessional loans for GE in
EC. Needed due to risk profile of GE Projects, constraints on
Governments
– Resources: (1) SEF/IDB loan; CTF-CRG; GEF grant: $42.9M; (2)
SEF/GCF funds approved thru IDB: Loan, CRG, grant: US$80M;
(3) EU-CIF, TA and investment grant: €12M

9. CDB’s
financing
for RE/EE
projects
• Sustainable Energy Facility (SEF):
– CDB/IDB Program for TA and Investments in RE/EE projects – mainly
for Geothrmal energy, hence falls under GeoSmart (items 1, & 2)
– Total resources approved/mobilized: US$122M funding thru IDB –
IDB/OC, GEF & CTF, GCF
• Canadian Support to the Energy Sector in
the Caribbean (CSES-C):
– CAD$5M TA fund for regulatory strengthening, capacity building and
project development
• Renewable Energy and Energy Efficiency
Technical Assistance (REETA):
– €3 million GIZ funding for Technical Assistance in addressing regulatory
and market issues in RE/EE sector
– Technical support for financial institutions, including CDB

10. Focus on
Geothermal
• CDB’s GeoSmart Initiative: A basket of TA and funding
mechanisms for geothermal development in the EC
• CDB financed St. Vincent Geothermal with $9.5M
Contingently Recoverable Grant (CRG), plus mobilizing
DFID & other Grant resources
• Current risk-cost profile of geothermal projects in the
Eastern Caribbean:

11. CDB’s
Renewable
Energy &
Energy
Efficiency
Unit (REEEU)
CDB established REEEU in 2014, to
implement key goal of Strategic Plan:
1. Business Development & Technical Support:
– Identification/screening/pre-feasibility of RE projects,
then handed over to Projects Department, appraisal/due
diligence and implementation supervision
– TA for project preparation, Capacity Building
2. Manage Facilities and Programs:
– E.g. SEEC; GeoSmart; CSES-C
3. Mobilize Resources for Renewable Energy:
– Climate financing
– Other concessional resources (e.g. EU-CIF)
4. Mainstream RE and EE within CDB:
– Ensure that all projects being pursued by CDB consider
RE/EE where relevant

12. TITLE
AND
CONTENT
WITH
PICTURE
CDB contacts:
Renewable Energy / Energy Efficiency Unit (REEEU)
Direct: (246) 431-1721
reee@caribank.org
S. Brian Samuel
Head of Regional PPPs
Direct: (246) 431-1681
Cell: (246) 230-6408
samuels@caribank.org