The second ODA loan deal between Japan and Cape Verde will also be co-financed by the African Development Bank.

Republic of Cape Verde will use the loan proceeds for the construction of transmission, distribution and substation facilities.

The project aims to stabilize power supply and improve access to electricity on six islands by implementing new installation, enhancements and update works on their transmission and distribution lines.

JICA said the project will enable the electrification of non-electrified rural communes, expected to contribute to climate change mitigation by reducing the emission of greenhouse gases.