AfDB boosts Mauritius power plant with US$117 million loan - CNBC Africa

AfDB boosts Mauritius power plant with US$117 million loan

Technology

by Trust Matsilele 0

AfDB’s US$117 million loan is set to power Mauritius power plant.

The CEB is Mauritius’s state owned electricity utility which intends to do the redevelopment of the Saint Louis Power Plant.

The Saint Louis Power Plant Redevelopment Project has a total cost of 129.7 million US dollars.

The electricity supply demand projections, at the end of next year, the demand of customers in Mauritius will exceed the current generating capacity connected to the power grid.

(READ MORE: Africa's electricity stability in need of a remedy)

This project is expected to increase the installed capacity by 60 megawatt (MW) and will contribute to bridging the gap in power supply.

“The project aims to increase the firm generating capacity of the CEB so as to maintain reliability of supply, reduce environmental impacts and stabilise the electricity supply,” noted the AfDB.

“The project will provide four medium-speed, four-stroke, heavy fuel oil (HFO) driven generators with a capacity of 15 MW each; a power station building; two 1,000 cubic metre tanks for the storage of HFO; and one 132 kV substation for connection of the power plant to CEB’s existing electricity grid.”

According to the AfDB, the main sectors of the Mauritius’ economy – tourism, textiles and financial services – are all dependent on the availability of a secure and reliable supply of electricity.

The bank added that, the government was finalising a ten-year Economic and Social Transformation Plan (ESTP).

“For its implementation, the government has prepared the 2014 – 2018 Public Sector Investment Program (PSIP), which includes the proposed project. The government will be relying on the AfDB as a lead financier in closing any gap in the financing of the PSIP.”

This project will be the AfDB’s first major intervention in Mauritius’ energy sector.

(READ MORE: Energy generation a key focus for Africa's growth)

“The AfDB has wide experience in similar types of projects in many African countries. The additional knowledge gained under the project will be useful as the bank designs projects in its island member states and in areas of continental Africa that are far away from transmission grids.”

Comments