ALBA-Caribe Fund

The ALBA-Caribe Fund is part of the PetroCaribe initiative, launched in 2005 by Venezuela to supply crude oil to Caribbean nations at reduced prices. The fund is accessible to PetroCaribe member countries for social programs and development projects. These projects can include building refineries, power plants, and developing alternative energy sources.1

PetroCaribe itself is an energy initiative that operates with a unique payment structure. Member countries pay for a portion of the oil within 90 days, with the remainder paid over 25 years at a 1% annual interest rate. Some costs can also be offset by providing goods or services. This initiative is distinct from the broader Bolivarian Alliance for the Peoples of Our America (ALBA), which focuses on social, political, and economic integration in Latin America and the Caribbean.12