WASHINGTON, United States (CMC) — Jamaica is to benefit from a US$30-million project that will promote electricity conservation on the island.

The Inter-American Development (IDB) and the Japan International Cooperation Agency (JICA) will fund the project that is also aimed at improving traffic flows in congested road corridors in the Kingston Metropolitan area, and enhancing the capacity of Jamaica’s Ministry of Energy to improve electricity sector planning.

“Jamaica’s dependence on petroleum imports and the inefficient use of energy resources seriously impacts government expenditure and debt, which is currently estimated at around 124 per cent of GDP (gross domestic product),” the IDB said.

“The absence of a complete Urban Traffic Management System (UTMS) to synchronise 161 traffic lights is a key factor causing congestion in the Kingston Metropolitan Region, contributing to inefficient urban mobility and unnecessary fuel consumption,” the Washington-based financial institution said.

It said that a better use of energy resources would “free public funds through lower government bills and reduced oil imports, helping Jamaica further reduce debt”.

The IDB said this Energy Management and Efficiency Programme promotes energy efficiency and conservation as one approach to bring down Jamaica’s fuel bill.

It mitigates against volatile oil prices, and contributes to Green House Gas emissions reduction, said the IDB, adding that the project targets the demand side of electricity generation and road transport sectors, which consume over 45 per cent of the country’s energy.

The IDB said the primary focus of the programme is on replacing outdated equipment and inefficient systems consuming electricity in 73 health, education, and public agency government facilities, “while demonstrating the attractive economic and environmental return of energy-efficient retrofits and investments”.

The project will also finance the purchase and installation of equipment to complete the Urban Traffic Management System in the Kingston Metropolitan region, taking advantage of the integrated use of information systems and telecommunications technology to better monitor and manage Kingston’s traffic, the IDB said.

It said the project will also address the issue of capacity building to strengthen public institutions critical to the promotion of energy efficiency in Jamaica.

For these investments to be sustained or scaled-up, the IDB said targeted investments are needed in project management, electricity planning and supervision on a wide range of energy efficiency projects.

The IDB said the project is a “Specific Investment Operation”, in which US$15 million will be financed by the IDB’s Ordinary Capital resources, while parallel financing totalling US$15 million will be provided by the Japan International Cooperation Agency (JICA), through the Co-financing for Renewable Energy and Energy Efficiency (CORE) mechanism.