The Board of Executive Directors of the Inter-American Development Bank (IDB) approved a $204.2 million financing package to support energy investments in Bolivia’s Northern Amazon Region (NAB), according to a press release issued in Washington on July 22, 2026. The package combines a Specific Investment Loan (ESP) of $142.2 million financed with the Bank’s Ordinary Capital resources, a $60 million loan, and a $2 million non-reimbursable investment grant channeled through the Climate Investment Funds (CIF). The operation targets more reliable and lower-cost electricity for households and businesses in the region. It also seeks to diversify power generation and modernize distribution. The program frames a broader shift toward regional energy integration.
The initiative is embedded in the IDB’s regional program Amazonia Forever, which promotes sustainable development across the Amazon basin. It also forms part of the Bank’s South Connection initiative, focused on regional integration in South America. The Northern Amazon Region has historically relied on isolated electricity systems. Diesel-based generation remains a significant cost for the country. The new financing responds to these structural conditions.
The program includes electricity interconnections with Brazil, linking Cobija’s isolated system to the distribution network of the state of Acre. It will also connect the isolated systems of Guayaramerín and Riberalta to the distribution system of the Brazilian state of Rondônia. Investments in the three Bolivian cities will upgrade distribution networks, modernize control systems, and implement cybersecurity measures. Smart metering will also be introduced. Solar photovoltaic generation plants and energy storage systems will be added to reduce diesel use in isolated systems serving more remote communities.
Residents of Riberalta, Guayaramerín, and Cobija, along with remote communities in the departments of Beni and Pando, will directly benefit from the program. Together, they represent a combined population of 209,000 people. The IDB indicates they will gain access to more reliable, affordable, and sustainable electricity services. The country will also benefit from reduced fiscal expenditures linked to diesel purchases for electricity generation. These outcomes are expected across both urban and rural areas of the Northern Amazon.
The $142.2 million IDB loan carries a repayment term of 23.5 years, a 7-year grace period, and an interest rate based on SOFR. The $60 million Clean Technology Fund Parallel Fund loan has a repayment term of 30 years, an 8.5-year grace period, and an interest rate of 1.33%. Together, the instruments finance the Investment Program for the Energy Transition of Bolivia’s Northern Amazon. The package combines concessional and ordinary resources to advance the region’s energy transition. It marks a coordinated step to strengthen energy security in Bolivia’s northern territory.
