Funds granted comprise $5.31m grant from the African Development Fund (ADF), $0.4m loan from ADF, and $1.8m from SEFA. In addition, the federal government is also expected to invest capital for the project.
Being developed under a Public Private Partnership, it will first see government conducting first exploration and appraisal drilling phase, while private companies will undertake production drilling, steam gathering system and electricity production and evacuation to the national grid.
The investment made by the AfDB and SEFA will be used as a catalyst to raise more financing from independent geothermal electricity producers.
SEFA funds will finance the employment of a geothermal consulting company to be recruited for technical management of the project and for preparing the power plant’s feasibility study.
