CRAF Signs First Financing Partner
The Caribbean region will now benefit from significant investments in Renewable Energy (RE) and Energy Efficiency (EE) projects with the rollout of the Credit Risk Abatement Facility (CRAF), a product of the Caribbean Development Fund (CDF), aimed at incentivizing investments in Small and Medium-Size Enterprises (SMEs), advancing clean energy projects.
On April 28th, the CDF signed its first Master Guarantee Agreement for financial support through the CRAF with the Saint Lucia Development Bank (SLDB). This move will empower Saint Lucian SMEs, through financial backing and security, to pursue clean energy projects, reduce operating cost and increase competitiveness. The CRAF stands on three pillars, a credit risk instrument, a technical assistance programme, and a monitoring and evaluation framework and aims to incentivize additional lending from local financing institutions to RE and EE projects in the business sector.
CDF CEO Mr. Rodinald Soomer said that partnership with financing institutions will help CARICOM reap the benefits of its growing energy sector. SLDB Chairman, Mr. Nicholas Barnard added that the partnership will support Saint Lucia’s move toward a low-carbon economy.
Established in collaboration with the CARICOM Secretariat’s Energy Unit and the GIZ – Technical Assistance Programme for Sustainable Energy in the Caribbean (TAPSEC), the CRAF was informed by a 2018 feasibility study conducted by Camco Clean Energy. The CRAF is currently in its USD $10M pilot phase of implementation in Barbados, Guyana, Suriname, Saint Lucia, and Belize.
To learn more about CRAF: https://craf.org/