The World Bank has approved financing towards the construction of the geothermal plant here in Dominica. Ambassador Vince Henderson, Coordinator of the Geothermal Energy Project made the announcement during an interview on Kairi’s Heng Program.
The World Bank approved the concessionary loan of USD $17.2-million at a 0.75% interest rate with a 10-year grace period and a repayment span of 25 years.
Ambassador Henderson confirmed that in addition to the loan, the geothermal project has also received USD $22-million as grant funding.
Mr. Henderson stated that all requirements of the World Bank were met and Dominica now has total approval of the project which includes the technical designs and the financial package for funding of the project.
The plant is expected to be constructed to a 7-megawatt plant which is about 40% of the average energy consumption in Dominica during its peak times. Mr Henderson went on to say the plan is then to sell cheaper power to DOMLEC which would reflect in lowered electricity costs.
According to Mr. Henderson the general aim of the geothermal initiative is to provide a substantial amount of energy to DOMLEC which would drastically cut electricity costs.