Project Description
MIGA has been requested to provide guarantees of up to US$11.7 million to cover: (i) an equity investment and retained earnings of up to US$3.4 million from KLED Capital Limited of British Virgin Islands; and (ii) a non-shareholder loan and future interests of up to US$9.0 million from CIFI LATAM S.A of Panama into KLED (St. Lucia) Limited incorporated in Saint Lucia (the Project Enterprise) against the risks of Breach of Contract, Transfer Restriction, and Expropriation for up to 15 years.
The Project consists of: (i) the installation, operation, and service of 24,640 energy efficient LED streetlights in total through the replacement of 22,000 existing old sodium lamps with LED lamps and installation of 2,460 new LED streetlights; and (ii) the installation, operation, and service of up to 969 CCTV cameras in up to 323 locations island-wide in Saint Lucia by the Project Enterprise as per the Fixed Price Public-Private Partnership Contract signed between KLED Capital and the Government of Saint Lucia on October 12, 2019, as expected to be amended.
Environmental Categorization
The Project is a Category B under MIGA’s Policy on Environmental and Social Sustainability. Click here to view the Environmental and Social Review Summary.
Development Impact
The Project is expected to derive the following benefits: (i) GHG emission reduction due to greater energy efficiency via the replacement of 18,150 70W sodium lamps in residential areas and 3,850 250W sodium lamps in main highways with energy-saving LED streetlights; (ii) improvement in public safety and security when using public infrastructure facilities through the installation of up to 969 CCTV cameras in up to 323 locations across the island, which could contribute to increased economic activity by the local population and tourists brought about by a higher sense of security; and (iii) a widespread adoption of LED lights by the public sector, households, and the private sector, thereby contributing to increased energy efficiency in the country.
