The Inter-American Development Bank (IDB) has approved a $15 million loan for an investment program to enhance the sustainability of water and electricity services on Rapa Nui, also known as Easter Island, in Chile.
The operation, which the IDB Board of Executive Directors approved as a Loan for Specific Projects, will make the island’s water services more efficient, reduce dependence on fossil fuels for generating electricity, and strengthen management of the local water and electricity utility, Sociedad Agrícola y Servicios Isla de Pascua SpA (SASIPA).
The program will directly benefit more than 3,800 SASIPA customers by providing access to more sustainable water and electricity services. All commercial establishments, most of which depend on tourism, will also indirectly benefit from the operation, as will the island’s transient population, which can reach up to 6,500 people.
Rapa Nui is a volcanic island approximately 2,300 miles off the coast of Chile in the Pacific Ocean. With about 8,700 inhabitants, its remote location makes it complex to provide sustainable essential services. Water sources are scarce and increasingly saline, and Rapa Nui depends on diesel to generate electricity.
The program will finance investments to guarantee the quality of drinking-water service, increase its efficiency and reduce leaks.
The program will also support the design, construction and commissioning of a new photovoltaic power station with battery storage, as well as an energy-efficiency program to make the island more self-sufficient in this area. These initiatives will save one million liters of diesel per year, avoiding 3,100 tons of CO2 emissions annually.
The IDB loan has a 25-year repayment period, a five-year grace period, and an interest rate based on the Secured Overnight Financing Rate (SOFR).
