Addis Abeba October 15/2020 (ENA) U.S. International Development Finance Corporation (DFC) has committed 1.55 million USD in technical development for the Tulu Moye Geothermal Power Plant Project in Ethiopia.
DFC’s grant will enable project development and accelerate the schedule to design the 50-megawatt geothermal power plant.
According to a press release of the corporation, the project will be the country’s first independent power project and one of the largest geothermal power plants in Ethiopia, a country with substantial untapped geothermal resources that can provide significant base load power.
“DFC will help to shape the design of the project by utilizing one of our new development tools: technical assistance,” DFC Chief Executive Officer Adam Boehler is quoted as saying. “This project will help Ethiopia to tap a critical resource for its economic growth.”
The Ethiopian company TM Geothermal Operations PLC (TMGO) is developing the Tulu Moye Project, which is approximately 100 kilometers southeast of Addis Ababa.
DFC’s technical development would provide funding for up to .55 million USD for project development. And after development is completed, DFC would evaluate additional financing for implementation, it was learned.
DFC’s technical development builds upon long-term U.S. Government support for the Ethiopian power sector, including by Power Africa, the U.S. Embassy in Ethiopia, the U.S. Trade and Development Agency, and the U.S. Department of the Treasury.
The Tulu Moye project is one of the first instances of DFC using its new technical development tool provided in the Better Utilization of Investments Leading to Development (BUILD) Act of 2018.
DFC grants for technical development, including feasibility studies and technical assistance, are designed to support potential and existing DFC financing and insurance investments and increase the impact of those investments.
U.S. International Development Finance Corporation (DFC) is America’s development bank. It partners with the private sector to finance solutions to the most critical challenges facing the developing world today.