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AfDB, Cape Verde Sign Electricity Project Loan Agreement
The Bank Group and Cape Verde signed on Thursday, in Praia, an agreement for an ADF loan of 4.82 million Units of Account* (UA) to help finance an electricity production and transmission project on Santiago Island.
The AfDB Resident Representative in Senegal, Mohamed H’Midouche, signed on behalf of the African Development Fund, the soft loan arm of the African Development Bank Group, while the Minister of Economy, Growth and Competitiveness, Jose Brito, signed for his country.
The project is estimated to cost 32.64 millions UA, about 55 millions US dollars. The JBIC is contributing 4.455 millions Yen (25.07 million UA which represents 76.80% of total amount). The ADF loan represents 14.76 % of the total, while the Cape Verdean government will contribute 2.75 million UA, representing 8.44% of the total amount, or 56.70% of the project’s local currency cost.
This project will help increase the capacity of the 20MW power station with the installation of two 10MW generators (G5 and G6) and the construction of a 60kV High Voltage 40 km transmission line linking the Palmarejo Power Station, located in Praia, to the locality of Calheta in the North of Santiago Island.
The loan will also provide for the installation (High Voltage/Medium Voltage and MV/HV) transformers in Praia and Calheta, respectively, as wells and a distribution network to extend the MV and low voltage networks that will increase Santiago’s electricity access from 85% in 2009, to 95% in 2012.
* 1 UA = 1.64450 as at 11/04/2008