World Bank approves USD-6m investment in African geothermal project

June 6, 2013 - The World Bank said yesterday it had approved a USD-6-million (EUR 4.6m) contribution to a Djibouti geothermal power project targeting the African country’s volcanic riches.

The project is the first phase of a two-step process to add 56-MW of geothermal production capacity in the country. It is expected to cut power generation costs by 70%.

With its contribution, the group seeks to help Djibouti assess the commercial viability of the geothermal resource in the Fiale Caldera within the Lake Assal region. According to World Bank project team leader Ilhem Salamon, developing Djibouti’s geothermal resources could allow the country to function almost entirely on green energy.

Global Environment Facility (GEF), OPEC Fund for International Development (OFID), African Development Bank (AfDB), Agence Francaise de Developpement (AFD) and the Global Geothermal Development Plan (GGDP) will help co-fund the total project costs of USD 31 million.

(USD 1.0 = EUR 0.763)

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