Abu Dhabi Fund for Development (ADFD) has agreed to provide AED64.2m ($17.4m), supporting the development of two renewable energy projects in the Seychelles.
The funding is expected to further enhance the country’s capability to generate renewable energy from sustainable resources.
Under the new initiative, ADFD director general Mohammed Saif Al-Suwaidi signed agreements with Seychelles Minister of Environment, Energy and Climate Change Didier Dogley and Seychelles Public Utilities CEO Philip Morin.
Al-Suwaidi said: “Since 1979, ADFD has shared outstanding relations with the government of Seychelles. We have successfully financed development projects to the tune of AED399m ($108m) across various regions in the country.
“These projects are focused on strategic sectors that promote sustainable economic development in Seychelles including housing, telecommunications, transport and energy. Our latest initiative to fund two high-potential projects in 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 Seychelles in meeting the country’s energy needs from sustainable resources.”
The agreement with Dogley includes the allocation of AED31.2m ($8.4m) for a solar farm that will be developed by the UAE-based renewable energy company Masdar in the island of Romainville, while the deal with Morin will see an investment of AED33m ($8.9m) for the installation of a 33kV power grid in the island of Mahé.
Dogley said: “The two agreements we signed today will contribute to the development of the energy sector and meeting the increasing demand for electricity in Seychelles.
“The ADFD has become one of the most important international funding organisations for its significant contribution to achieving sustainable development on a global scale. We commend its success in financing development projects across the world.”
The 5MW solar project is expected to support the Seychelles energy sector as well as help in the economic and social development of the country.
The solar farm will also feature storage batteries in order to stabilise electricity prices in the region an also minimise the dependency on biofuels.
The 33kV power grid project in the island of Mahé will see the installation of a 12.5km line along with two feed stations to strengthen the transmission and distribution network in the northern areas.
The financial assistance provided to the Rumenville Island’s solar farm project is reportedly the fourth funding cycle of the International Renewable Energy Agency (IRENA) / ADFD Project Facility, which was launched in 2013.