The Dominican government says it is seeking funding from the World Bank and other international lending agencies as the island moves to further develop its geothermal sector.
Prime Minister Roosevelt Skerrit said the government has established the Dominica Geothermal Development Company (DGDC) to move ahead with the construction of the plant. The project is expected to reduce Dominica’s dependence on crude oil.
“In June of this year, the government of New Zealand recruited a project manager who is now engaged with DGDC,” Skerrit told legislators recently. “Funding for the project will come from various sources.”
Government contribution
Skerrit, who is also Finance Minister, said the government will contribute EC$40.5 million.
“In addition to government’s contribution we have secured all the funds required to construct the plant from our development partners,” he said. He also indicated the funding will include EC$30 million from Britain, EC$5.4 million from New Zealand and also EC$5.4 million from SIDS DOCK.
Application made to UAE energy fund
Dominica has also applied for grant funding from the United Arab Emirates Caribbean Renewable Energy Fund. Between EC$8.1million and EC$13.5 million is expected to fund a battery storage system to be used on the national electricity grid.
World Bank loan
Skerrit said funding for this project will also be obtained from the World Bank through a loan of EC$16.2 million at a highly concessionary rate of 0.75 per cent with a 10-year grace period and 44-year repayment plan.
The prime minister noted the environmental and social impact assessment for the geothermal project is ongoing in the Roseau valley.
“Every effort will be made to ensure that adverse impacts on the communities and the environment will be mitigated,” he said. Land owners in the area can also expect to be compensated for use of their property. Support will be provided to residents who occupy lands to ensure they are not left worst off, the Prime Minister assured.
The designs for the plant are progressing and should be completed by the third quarter of 2017.
“Once the plant has been commissioned, the DGDC will sell power to DOMLEC (Dominica Electricity Company) to be distributed throughout the country.
