IDB Allocates $204 Million to Decarbonize Bolivia’s Amazon Power Grid

The initiative, part of the broader Amazonia Forever regional strategy, focuses on integrating local networks with Brazil’s existing power grid. Cobija will link directly to the distribution system in Acre state, while Riberalta and Guayaramerín are slated for connections to Rondônia. These cross-border links are designed to provide a more stable and cost-effective electricity supply than current diesel-reliant methods, which are prone to supply chain disruptions and high logistics costs due to the region's difficult terrain.

Beyond interconnections, the project targets urban distribution efficiency through the modernization of control systems, smart metering, and enhanced cybersecurity. For the most isolated communities, the funding will deploy solar photovoltaic plants paired with storage systems. This shift away from diesel is expected to lower public spending on fuel imports while significantly reducing the environmental footprint of energy production in the Amazon basin.

The capital structure consists of a $142.2 million IDB loan with a 23.5-year repayment window, a $60 million loan from the Clean Technology Fund, and a $2 million grant from the Climate Investment Funds. By stabilizing the energy supply, the bank seeks to bolster economic development for businesses and households previously constrained by intermittent power.