Dominica’s move toward self-reliance from the use of geothermal energy has reached a new milestone.
The Caribbean Development Bank (CDB) states that several financial partners on the project have fulfilled their commitments.
The bank adds that it has reached financial close on a facility for the geothermal power plant.
The bank states that the facility was made available to the Geothermal Power Company (GPC) of Dominica for the construction of the 10-megawatt project.
The GPC is a wholly owned subsidiary of Ormat Technologies Inc., a leading international geothermal developer.
The CDB said that Dominica’s project is the first geothermal project in the region to reach this stage with a private sector partner.
CDB Vice President of Operations Isaac Solomon said This is a pivotal transaction for the Bank, for the Commonwealth of Dominica, and for the region.
It showcases the potential of blended concessional finance to mobilise private sector expertise and deliver transformative clean energy solutions in small island developing states.
The power plant development phase is being implemented as a private sector-led initiative, with CDB acting as the lead financial arranger.
The project has secured US$34.8 million in concessional funding.
Of this amount, US$25.4 million is provided by the Green Climate Fund (GCF) in the form of a concessional loan, which was mobilised through the Inter-American Development Bank.
An additional US$9.4 million is being provided from Canada’s Supporting Resilient Green Energy Initiative in the Caribbean.
The CARICOM Development Fund (CDF) is also contributing US$15 million in loan financing.
Recently, Energy Minister Vince Henderson said the geothermal plant was on track to be completed by the end of the year.
