Kuwait Fund to back 15-MW geothermal project in Djibouti

The Kuwait Fund for Arab Economic Development (KFAED) will support with a KWD-8-million (USD 26.7m/EUR 21.7m) loan the development of a 15-MW geothermal project in Djibouti.

In addition to the loan, KFAED signed an agreement with the project developer, Djibouti Geothermal Power Corporation, concerning some arrangements for the execution of the scheme.

Scheduled to be completed by the end of 2021, the project is expected to meet a portion of the power demand in Djibouti, reduce the interruption of electricity services and the import of fuel and electricity from abroad.

The loan has a term of 25 years, including a 5-year grace period, and is to be amortised in 40 semi-annual instalments. It bears an interest rate at 2% per year, in addition to 0.5% annually to cover administrative costs and other expenses incurred in the implementation of the agreement, KFAED noted.

(KWD 1 = USD 3.33/EUR 2.71)

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