Djibouti, World Bank sign geothermal energy agreement

power-transmitting-station17 October 2013, Djibouti – Djiboutian government officials and the World Bank on October 13 signed a 1.1 billion franc ($6.1 million) agreement to finance a geothermal energy exploration, the Djibouti Information Agency reported.

The agreement was signed by Djiboutian Minister of Economy and Industrial Finance Ilyas Moussa Dawaleh and World Bank Vice President for the Middle East and North Africa Inger Andersen.

“Geothermal energy can play an important role in the energy policy of Djibouti, whose goal is for green energy to cover all energy needs by 2020,” Dawaleh said. “All of our citizens should have access to an affordable and reliable source of electricity, which is crucial to economic development.”

The project is intended to allow Djibouti to ascertain the commercial viability of its geothermal resources in Lake Assal. Once the capacity of geothermal energy production is developed, Djibouti is expected to be able to meet peak demand, reduce energy dependence and drastically reduce the costs of producing electricity.

The 5.5 billion franc ($30.6 million) total costs of the project will also be funded by the Organisation of the Petroleum Exporting Countries Fund for International Development, the African Development Bank, the Danish Fund for Sustainable Energy for Africa and the French Development Agency. The Djiboutian government is expected to contribute 90 million francs ($500,000).

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