Saint Lucia LED Street Lights Project
MIGA issued guarantees to cover: (i) an equity investment and retained earnings of US$11.6 million on behalf of KLED Capital Limited of the British Virgin Islands for up to 15 years on December 16, 2021; and (ii) a non-shareholder loan and future interests of US$9.9 million on behalf of CIFI LATAM S.A of Panama for up to 8 years on March 15, 2023 into KLED Capital Limited incorporated in Saint Lucia (the Project Enterprise) against the risks of Breach of Contract, Transfer Restriction, and Expropriation.
The Project consists of 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 by the Project Enterprise as per the Fixed Price Public-Private Partnership Contract signed between KLED Capital Limited and the Government of Saint Lucia.
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.
The Project is expected to derive the following benefits: (i) Energy savings of about 6.8 GWh per year, corresponding to budgetary savings of about $2.3 million per year; (ii) 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; and (iii) a further widespread adoption of LED lights by the public sector, households, and the private sector, thereby contributing to increased energy efficiency in the country.