22 January 2014

Djibouti Cabinet Approves Funding for Lake Assal Geothermal Project

Djibouti's cabinet on Tuesday (January 21st) approved funding for several projects to be carried out by development partners for the first phase of the geothermal energy development at Lake Assal.

The financing arrangements take the form of a loan worth more than 1.1 billion francs ($6.1 million) and a grant worth more than 2.6 billion franc ($14.4 million) for six proposed projects.

"What these projects entail is exploration of the geothermal steam field including a drilling programme, technical studies, a feasibility study for the construction of a power plant and project management," Djiboutian Minister of Economy and Industrial Finance Ilyas Moussa Dawaleh told Sabahi. "The overall budget for the project, which is 5.4 billion francs, will be supplemented with funding from the French Development Agency and the [Organisation of the Petroleum Exporting Countries] Fund for Development."

"This funding will make it commercially viable to exploit this resource and will significantly increase the supply of a low-cost energy to the population and growth sectors within our economy," he said.

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