BRIDGETOWN, Barbados — The Caribbean Development Bank (CDB / the Bank) has reached financial close on a facility for the landmark Dominica Geothermal Energy 10MW Project. The facility is made available to the Geothermal Power Company of Dominica (GPC) that was established specifically to implement the project. GPC is a wholly owned subsidiary of Ormat Technologies Inc., a leading international geothermal developer.
This transaction is the first geothermal project in the region to reach this stage with a private sector partner.
Isaac Solomon, CDB vice president of operations, underscored the significance of the project by explaining:
“This is a pivotal transaction for the Bank, for the Commonwealth of Dominica, and for the region. It showcases the potential of blended concessional finance to mobilise private sector expertise and deliver transformative clean energy solutions in small island developing states.”
The power plant development phase is being implemented as a private sector-led initiative, with CDB acting as the lead financial arranger. The project has secured USD 34.8 million in concessional funding. Of this amount, USD 25.4 million is provided by the Green Climate Fund (GCF) in the form of a concessional loan, which was mobilised through the Inter-American Development Bank (IDB)-GCF program titled “FP020: Sustainable Energy Facility for the Eastern Caribbean.” An additional USD 9.4 million is being provided from Canada’s Supporting Resilient Green Energy Initiative in the Caribbean (SuRGE) programme. The CARICOM Development Fund (CDF) is also contributing USD 15 million in loan financing out of its own capital fund resources, as the major element of the CDF’s Country Assistance Programme for Dominica.
Rodinald Soomer, CDF chief executive officer highlighted the strategic regional importance of the project by noting:
“It leverages Dominica’s natural resource endowments to create a sustainable productive asset that helps the country address the inherent disadvantages it faces as one of the Least Developed Countries in CARICOM, in producing goods and services for regional and global markets at internationally competitive prices.”
Anton Edmunds, IDB general manager for the Caribbean, congratulated CDB, CDF, and GCF for this landmark achievement in regional energy development by stating:
“This milestone represents a ‘before and after’ moment in Dominica’s energy transformation and underscores the steadfast commitment of our institutions to advancing sustainable development. As the implementing entity of the GCF, we at the IDB are proud to have played a key role in securing the financing for the first geothermal power plant to operate under a public-private partnership in the English-speaking Caribbean. When the plant starts to operate, the very next day, up to 70% the energy matrix of the country will be powered by geothermal energy, liberating important resources that were used to import fossil fuels for power generation.”
Kristin Lang, Director of the Green Climate Fund’s Department of the Latin America and the Caribbean region, commended the project, saying:
“We are pleased to see the growing momentum of this landmark geothermal energy project, which is turning ambitions and partnerships into clean energy solutions for small island developing states in the Caribbean. By deploying catalytic capital to unlock clean energy access, this initiative demonstrates how innovative financing, including the private sector, can transform the energy sector in the region.”
H.E. Brenda Wills, High Commissioner of Canada to Barbados and the Eastern Caribbean emphasised support for the initiative, adding:
“Canada is pleased to partner with the Caribbean Development Bank in enhancing access to clean energy in Dominica and supporting the country’s ambition of becoming more climate resilient and energy secure. This project is an important part of Canada’s Supporting Resilient Green Energy Initiative in the Caribbean (SuRGE) programme, which aims to accelerate the region’s transition towards sustainable energy.”
The Dominica geothermal plant is seen as a transformative initiative, setting the stage for the full development of the country’s extensive geothermal resource, estimated at up to 1000 MW. Construction of the facility in the Roseau Valley is underway and, once operational, it will deliver firm renewable energy to the national grid, replace diesel-based generation, and lower electricity production costs.
Vince Henderson, minister of foreign affairs, international business, trade and energy for Dominica, champions the development of the country’s geothermal resources.
He stated: “The development of this truly green, resilient and renewable energy infrastructure in Dominica is a massive step forward for the island and the wider region. We are pleased to see our regional financing partners take a lead role in providing concessional financing for this initial 10 MW geothermal power plant.”
The project is expected to enhance energy security, stabilise tariffs, cut greenhouse gas emissions, and drive long-term economic growth. It also supports Dominica’s climate resilience and development goals while creating opportunities to engage in the global market for green energy products such as green electricity, green hydrogen, and green ammonia. The initiative reflects CDB’s commitment to advancing a clean, resilient, and inclusive energy future for the region.
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