SVG to only pay for the financial grant if the geothermal project is a success
In a statement made by the Director of the Energy Unit of SVG, he reassured that the geothermal project was financed under a contingent grant which will only be repaid if the project is a success.
According to Ellsworth Dacon, Director of the Energy Unit of St. Vincent and the Grenadines, the exploratory drilling for geothermal energy in La Soufriere has been funded by a contingent grant which will need to be repaid only if the project is a success. This statement was made in the midst of reports that the permeability of the first drilled well fell below expectations.
“If it successful, then it is a loan. It is a loan for USD$15.9 million with a 3.5% interest rate. If the project fails and then you don’t have any wells, then it is a grant, so it is a contingent grant,” according to Dacon.
The drilling contract for the geothermal project in SVG costs $21 million. Drilling at the Bamboo Range, La Soufriere started just about three months ago. With Well 1 completed, the drilling rig has moved to the site for Well 3, where drilling is currently underway.