| Project Detail |
A loan Agreement for 9 KD Million was signed in Kuwait on the 17th of April 2018 to help finance a project for Electricity Generation Using Geothermal Energy in Djibouti.
The loan agreement was signed by H.E. Elyas Doalah, Minister of Finance and Economy, on behalf of the Government of Djibouti, and by H.E. Mr. Abdlatif Yousef Al-Hamad, Director General/ Chairman of the Board of Directions, on behalf of the Arab Fund.
The project, which is expected to be completed by the end of 2022, aims at satisfying part of the increasing demand for electrical power and energy in Djibouti, without needing to import fossil fuel. This will be accomplished through the construction of a steam power generating plant that uses the geothermal energy available at the Lake “Assal” area, and connecting it to the electrical transmission grid. The project represents the first stage of an ambitious program by the Djiboutian Government to utilize the inherent geothermal resources in the country, and its success will open the door for the contribution of the private sector in the subsequent stages of the program.
The project includes the following main components:
Steam Production Facilities.
Power Generation Facilities.
Interconnection Works.
Consultancy Services.
Institutional Support.
The loan will carry interest at 2% per annum and will be repayable over 30 years, including a 7 year grace period.
The Djiboutian Establishment for the Development of Geothermal Energy will be the beneficiary of the loan.
With the the signing of the loan, the Arab Fund’s total contribution to financing projects in the Arab Republic of Djibouti now amounts to KD 121 Million. |
