Dominica geothermal project could benefit from new CDB/ IDB funding
With funding for project financing by the Caribbean Development Bank (CDB) and the Inter-American Development Bank (IDB) announced, the geothermal project of Dominica in the Caribbean could see a push for the development of a power plant.
With newly announced funding by the Caribbean Development Bank (CDB) and the Inter-American Development Bank (IDB), the island state of Dominica in the Eastern Caribbean, could see a push for its development.
Part of the $85 million funding announced is actually earmarked for power plant construction and related infrastructure. “US$ 60 million from the Green Climate Fund (GCF) are provided as loan for a 20 year term, with a 5.5 year grace period, and a concessional based interest rate to develop geothermal plants and transmission lines.”, as announced this week.
Of the funding for the five Eastern Caribbean nations of Dominica, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines, only Dominica has finished the drilling and is ready to engage on power plant development.
A great new website for the project by the Dominica Geothermal Development Company Ltd has been launched and provides a great overview on the project.
Dominica Geothermal Development Company Limited is a special purpose vehicle established by the Government of the Commonwealth of Dominica to lead all activities relating to geothermal exploration in Dominica. Registered in December 2016, with a Board of Directors appointed in March 2017, DGDC Ltd. became operational with a full complement of staff in June 2017.
At present, the Government of the Commonwealth of Dominica is the sole shareholder. Its interests are ably monitored by three shareholder representatives in the offices of the Financial Secretary, Secretary to the Cabinet and the Permanent Secretary in the Ministry of Trade, Energy & Employment.
The planned 7 MW geothermal power plant would provide power to around 23,000 homes when ready.
The anticipated construction timescale of the project is 18 months and the government has so far invested $50 million (Eastern Caribbean Dollars – around USD 18.5 million).