In a release today, the U.S. International Development Finance Corporation (DFC) announced having committed $1.55 million in technical development for the Tulu Moye Geothermal Power Plant Project in Ethiopia. DFC is the transformed Overseas Private Investment Corporation (OPIC).
DFC’s grant will enable project development and accelerate the schedule to design the 50 MW geothermal power plant. When completed, the project will be the country’s first Independent Power Project and one of the largest geothermal power plants in Ethiopia, a country with substantial untapped geothermal resources that can provide significant baseload power.
“DFC will help to shape the design of the project by utilizing one of our new development tools: technical assistance,” said DFC Chief Executive Officer Adam Boehler. “This project will help Ethiopia to tap a critical resource for its economic growth.”
Ethiopian company TM Geothermal Operations PLC (TMGO) is developing the Tulu Moye project, which is approximately 100 kilometers southeast of Addis Ababa. DFC’s technical development would provide funding for up to $1.55 million for project development. After development is completed, DFC would evaluate additional financing for implementation. If TMGO receives implementation financing from DFC or any other financier, TMGO will pay back the full amount of the technical development funding.
DFC’s technical development builds upon long-term U.S. Government support for the Ethiopian power sector, including by Power Africa, the U.S. Embassy in Ethiopia, the U.S. Trade and Development Agency, and the U.S. Department of the Treasury.
The Tulu Moye project is one of the first instances of DFC using its new technical development tool provided in the Better Utilization of Investments Leading to Development (BUILD) Act of 2018. DFC grants for technical development, including feasibility studies and technical assistance, are designed to support potential and existing DFC financing and insurance investments and increase the impact of those investments.
Visit DFC’s website for more information on DFC’s technical development tool.
Source: DFC (U.S. International Development Finance Corp.)