The agreement, the first of its kind between ADFD and St. Vincent and the Grenadines, was signed between Mohammed Saif Al Suwaidi, Director General of ADFD, and Ralph Gonsalves, Prime Minister of Saint Vincent and the Grenadines, ADFD said.
The project is being funded as part of the $350 million ADFD/International Renewable Energy Agency (IRENA) project facility that was set up in 2012 to provide concessional financing for renewable energy projects in developing countries affiliated with IRENA.
ADFD said that, as one of the five projects selected for funding as part of the second loan cycle facility, the geothermal power plant aims to use naturally occurring geothermal energy to fulfill a power shortage in Saint Vincent and the Grenadines. In the long term, the project will help drive the wider energy sector and accelerate sustainable economic development across the country’s 32 islands.
Commending the United Arab Emirates’ efforts to promote stronger international development relations with St. Vincent and the Grenadines, Gonsalves said in a Feb. 2 statement: “the proposed geothermal power plant will give a strong boost to the energy sector in our country, supporting its economic growth and development programmes. ADFD plays an active role in financing development projects that translate into significant economic and social impact in beneficiary countries. My government is keen to leverage our collaboration with the Fund to push ahead with more development projects that deliver key sustainable development goals and benefit the overall economy.”
The geothermal power plant in St. Vincent and the Grenadines, made up of three 5-MW facilities, will leverage the island’s natural renewable sources, while cutting the cost of electricity generation by 25 percent, ADFD said. In addition, the associated construction, operations and maintenance of the plant, the conversion station, and 40 kilometers of transmission lines to connect the plant to the grid, is anticipated to create several job opportunities for the local population.
Lead image: Loan agreement. Credit: Shutterstock.