European Investment Bank to support USD 112m transmission network in Dominican Republic / Enabling greater use of renewable energy and increasing electricity access in poor communities
The European Investment Bank, the long-term lending institution of the European Union, has agreed to finance high-voltage electricity transmission networks across the central and southern regions of the Dominican Republic. This project will enable power generated by new wind and hydroelectric power plants to be distributed to the rest of the country and enable over 100,000 people to access electricity for the first time and improve the quality of electricity supply.
Earlier today European Investment Bank Vice President responsible for the Caribbean, Plutarchos Sakellaris and Dominican Republic Finance Minister Vicente Bengoa signed the agreement under which the European Investment Bank will provide USD 37m for the electricity transmission scheme.
“We commend the Dominican Republic’s commitment to encourage greater use of renewable energy in the global fight against climate change. This transmission network that we are financing will enable thousands of households to access electricity for the first time.” said Plutarchos Sakellaris, European Investment Bank Vice President for the Caribbean. “The European Investment Banks offers its continued support to enable increased distribution around the Caribbean’s largest economy” he added.
“We welcome the European Investment Bank’s strong engagement with the national power sector and dedicated work to improve electricity access by poor households. The Dominican Republic shares the European Union’s goal of fighting climate change through greater use of renewable energy.” said Dominican Republic Finance Minister, Vicente Bengoa.
“Economic development and climate action are interlinked. This project demonstrates European commitment to promoting both around the world.” said Irene Horejs, European Union Ambassador to the Dominican Republic.
The signature ceremony was also attended by Celso Maranzini, CEO of the Compania Dominicana de Empresas Electricas and the European Union Ambassador to the Dominican Republic Irene Horejs. The European Investment Bank Vice President is currently visiting the Caribbean on an official visit. The high-level delegation will discuss greater engagement of the European Investment Bank in the region with local ministers and members of the business and finance community, as well as visiting projects financed by the Bank.
The challenges of increased climate risk have been incorporated into the project with transmission lines able to withstand hurricane winds up to 230 km/h. Comprehensive environmental assessments for the project have been completed to ensure minimal environmental and social impact.
The project will enable the connection of rural consumers in a poor region on the border with Haiti and provide considerable employment opportunities during construction. The European Investment Bank has previously lent EUR24m for 3 electricity transmission projects in the Dominican Republic.
Over the last five years the European Investment Bank has provided USD 383 m for projects in the Caribbean. This has been coordinated through a regional office in Martinique. The European Investment Bank supports the European Union’s cooperation and development policies in the African, Caribbean and Pacific regions under the Cotonou Partnership Agreement between the EU and 79 African, Caribbean and Pacific countries. Combating poverty and integrating ACP countries into the global economy are core objectives of the Cotonou Agreement
Notes for Editors:
The European Investment Bank, the long-term lending institution of the European Union, whose shareholders are the 27 European Union member states, has been active in the Caribbean for over 40 years. EIB activities follow policies and objectives set down by European Union member states and whose Finance Ministers are the EIB’s Governors.