Published: July 9, 2013
Country receives US$7.5mn from AfDB.
The African Development Fund (ADF) and the Sustainable Energy Fund for Africa (SEFA), both arms of the African Development Bank (AfDB), have put US$7.5mn towards the development of geothermal energy in Djibouti. The initial exploration project will be centred on Lake Assal, which is also the largest untapped salt reserve in the world.
The US$7.5mn donation is part of a US$32mn package needed for the first phase of geothermal development. Around US$5.31mn has been provided by the ADF, US$1.8mn by SEFA, with Djibouti’s government also offering a contribution.
At present, a majority of Djibouti’s old, polluting energy infrastructure is based in Djibouti City, meaning that half the country has no access to electricity. The AfDB has expressed the wish that these funds will encourage the entry into the market of private geothermal players.