Abu Dhabi Fund for Development (ADFD) has pledged $17.5m (AED64.2m) for the development of two renewable energy projects in the Republic of Seychelles.
The UAE entity for development aid announced today that it has signed two agreements, one with the Ministry of Environment, Energy, and Climate Change of the Seychelles, and another with the country’s Public Utilities Corporation.
Under the first agreement, an allocation of $8.5m (AED31.2m) will go towards a solar farm, which will be developed by Masdar on the island of Romainville, while the second agreement involves a $9m (AED33m) investment for the installation of a 33kV power grid on the island of Mahé.
Commenting on the agreements, ADFD Director General HE Mohammed Saif Al Suwaidi, said: “Since 1979, ADFD has shared outstanding relations with the government of the Seychelles.
“We have successfully financed development projects to the tune of $108.6m (AED399m) across various regions in the country. These projects are focussed on strategic sectors that promote sustainable economic development in the Seychelles, including housing, telecommunications, transport, and energy.
“Our latest initiative to fund two high-potential projects in the Seychelles validates our sustained efforts to promote the widespread adoption of renewable energy in developing countries. The funding also reiterates ADFD’s commitment to supporting the efforts of the government of the Seychelles in meeting the country’s energy needs from sustainable resources,” he added.
The solar farm project in Romainville Island is financed as part of the fourth funding cycle of an IRENA/ADFD project facility that was launched in 2013.
According to ADFD, the 5MW solar farm project, which is expected to benefit nearly 90,000 people, will include storage batteries designed to help stabilise electricity prices on the island and reduce its dependence on biofuels.
Meanwhile, a 12.5km power line and two feed stations will be implemented on the island of Mahé as part of the 33kV power grid project.
The project will be built at an estimated cost of $10.5m (AED38.6m), of which $9m (AED33m) will come from ADFD.