Dominica sets aside $15 million for geothermal project
Despite challenging finances due to recent tropical storms, the government of Dominica has set aside $15 million for a geothermal power project on this island state in the Caribbean.
Reported by local news, the government of Dominica in the Caribbean has set aside $15 million for the development of a geothermal project on the island state. In a press statement last week, Prime Minister Roosevelt Skerrit said that this is an increase of $5 million to an earlier announced $10 million to be put into the project by the government.
In December, 2012, the government signed a US$18.1 million contract with a drilling company from Iceland for geothermal exploration.
The project has drilled three wells and conducted flow tests to determine the potential for geothermal power generation.
Despite a challenging financial situation due to recent tropical storms, the government still sees the geothermal project as a national priority.
As we reported in September, Dominica and New Zealand confirmed an expansion of their cooperation on the development of a 7 MW geothermal plant, worth $1.4 million (4 million East Caribbean Dollars)
Since 2014, the Government of New Zealand has been providing the Government of Dominica with Technical Assistance for the development of Dominica’s geothermal resources.
Apart from New Zealand, Mr Skerrit informed that his government has received “a very firm commitment from the government of the United Kingdom where they will be providing us with between $9-10 million towards the geothermal plant”.
There are other international countries and agencies willing to invest in Dominica’s geothermal energy development, and as per Mr Skerrit, “there is literally a battle, a very friendly battle, among international financial institutions seeking to provide us with the additional financing required to finance the geothermal plant”.
Cabinet has however; made a determination as to which financial institution it will approach to finance the geothermal plant and negotiations are ongoing.
Government plans to, once the geothermal plant is operational, offer shares to the Dominican public. As per Mr Skerrit, government plans to dispose of as much as forty to fifty percent of its ownership in the geothermal plant.
Source: Dominica Vibes