ADFD Signs AED55 Million Loan Agreement with St. Vincent and the Grenadines
,02 Feb 2016
Abu Dhabi Fund for Development (ADFD) has inked an AED55 million (US$15 million) loan agreement with Saint Vincent and the Grenadines to set up a geothermal power station in the island country. The agreement, the first of its kind between ADFD and St. Vincent and the Grenadines, was signed between H.E Mohammed Saif Al Suwaidi, Director General of Abu Dhabi Fund for Development (ADFD) and H.E Ralph Gonsalves, Prime Minister of Saint Vincent and the Grenadines.
<br /><br />
The project is being funded as part of the AED1.285 billion (US$350 million) ADFD/IRENA project facility, set up in2012, to provide concessional financing for renewable energy projects in developing countries affiliated to International Renewable Energy Agency (IRENA).
<br /><br />
One of the five projects selected for funding as part of the second loan cycle facility, the power plant aims to utilize naturally occurring geothermal energy to plug the power shortage in Saint Vincent and the Grenadines. In the long term, the project will help drive the wider energy sector and accelerate sustainable economic development across the country’s 32 islands.
<br /><br />
Commending the UAE’s efforts to promote stronger international development relations with St. Vincent and the Grenadines, His Excellency Ralph Gonsalves, Prime Minister of Saint Vincent and the Grenadines said: “the proposed geothermal power plant will give a strong boost to the energy sector in our country, supporting its economic growth and development programmes.
<br /><br />
“ADFD plays an active role in financing development projects that translate into significant economic and social impact in beneficiary countries. My government is keen to leverage our collaboration with the Fund to push ahead with more development projects that deliver key sustainable development goals and benefit the overall economy.”
<br /><br />
His Excellency Mohammed Saif Al Suwaidi, Director General of Abu Dhabi Fund for Development, said: “ADFD has paid particular attention to the renewable energy sector given the essential role of energy in meeting the growing needs of developing countries, and supporting their social and economic development. The benefits of renewable energy projects should not be limited to rich countries alone but must also be extended to developing countries to help these countries improve the livelihoods of their citizens, and address the enormous challenges encountered in securing necessary financial resources for funding renewable projects .”
<br /><br />
He added: “The renewable energy projects financed by the Fund since 1974 to date have contributed to delivering clean energy for millions of people in more than 24 developing countries across the globe. These projects have generated thousands of megawatts of renewable energy, and stimulated economic growth in the beneficiary countries."
<br /><br />
The geothermal power plant in St. Vincent and the Grenadines, made up of three 5MW facilities, will enhance the electricity grid in the island by leveraging its natural renewable sources, while cutting the cost of electricity generation by 25 per cent. In addition, the associated construction, operations and maintenance of the plant, the conversion station and 40km of transmission lines to connect the plant to the grid is anticipated to create several job opportunities for the local population.
<br /><br />
<h1><strong>ADFD Hosts Lecture by Saint Vincent and the Grenadines Prime Minister</strong></h1>
<br />
On the sidelines of loan agreement signing ceremony with Saint Vincent and the Grenadines, His Excellency Ralph Gonsalves, Prime Minister of Saint Vincent and the Grenadines, delivered a lecture titled ‘Wind and Solar Energy Project in St. Vincent and the Grenadines: from Dream to Reality’ at ADFD headquarters in Abu Dhabi. The lecture highlighted the social and economic developments in St. Vincent and the Grenadines, significance of renewable energy projects for St. Vincent and the Grenadines and the anticipated economic and social impacts of the project on the country. <br /><br />
The lecture was attended by Dr Thani Al-Zeyoudi, Minister of Climate Change & Environment, His Excellency Adnan Z. Amin, Director-General, IRENA, His Excellency Mohammed Saif Al Suwaidi, Director General of ADFD and a number of key officials from ADFD and other government entities.
