World Bank inks USD-6m loan for Djibouti geothermal scheme

Oct 14, 2013 - The World Bank said yesterday it had signed agreements to extend USD 6 million (EUR 4.4m) for a geothermal project in the Republic of Djibouti, eastern Africa.

The highly concessional credit will be provided through the International Development Association (IDA), part of the World Bank.

The project, worth USD 31 million, is the first phase of a two-step plan to add 56 MW of geothermal capacity in the country. The project is seen to cut power generation costs by 70%, the World Banks said when granting approval to the financing in June.

The geothermal power project is also backed by the OPEC Fund for International Development (OFID), the African Development Bank, Agence Francaise de Developpement (AFD) and the Danish Sustainable Energy Fund for Africa. The scheme, which is planned to ensure power access for more local people, will be also financed by the government of Djibouti with a USD-500,000 investment.

"Geothermal energy can play an important role in Djibouti's energy policy which is to reach 100% green energy by 2020”, said Djibouti's Minister of Finance and Economy Ilyas Moussa Dawaleh.

(USD 1.0 = EUR 0.737)

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