Project funded as part of the US$350 million ADFD/IRENA project facility
St. Vincent and the Grenadines Prime Minister Dr. Ralph Gonsalves has signed a US$15 million loan agreement with the Abu Dhabi Fund for Development (ADFD) to establish a geothermal power station on the Caribbean island.
The agreement was also signed by the SDFD director general Mohammed Saif Al Suwaidi.
The geothermal project is being funded as part of the US$350 million ADFD/IRENA project facility, set up in 2012, to provide concessional financing for renewable energy projects in developing countries affiliated to International Renewable Energy Agency (IRENA).
One of the five projects selected for funding as part of the second loan cycle facility, the power plant aims to utilize naturally occurring geothermal energy to plug the power shortage in St. Vincent and the Grenadines.
It will also help drive the wider energy sector and accelerate sustainable economic development across
“The proposed geothermal power plant will give a strong boost to the energy sector in our country, supporting its economic growth and development programmes,” Gonsalves said.
“ADFD plays an active role in financing development projects that translate into significant economic and social impact in beneficiary countries. My government is keen to leverage our collaboration with the Fund to push ahead with more development projects that deliver key sustainable development goals and benefit the overall economy,” he added.
Suwaidi said “ADFD has paid particular attention to the renewable energy sector given the essential role of the sustainable energy in meeting the growing needs of developing countries, and supporting their social and economic development.
He said evidence suggests that despite the enormous potential of renewable energy in acting as a key enabler of sustainable development across the world, there remain challenges and gaps in the ease of accessing global funds to support these projects so we are delighted to be able to support this project by providing essential finance.
“The renewable energy projects financed by the Fund since 1974 to date have contributed to delivering clean energy for millions of people in more than 24 developing countries across the globe. These projects have generated thousands of megawatts of renewable energy, and stimulated economic growth in the beneficiary countries,” he added.