Praia, Cape Verde, 29 Oct – Building work on the new power plant on Santiago island is due to begin at the end of January 2009, the director-general of Industry and Energy, Abraão Lopes said Monday in Praia.
The agreement that will mark the start of the project was signed Tuesday in Praia between the Cape Verdean government and Portuguese companies Construção e Manutenção Electromecânica (CME) and Efacec Engenharia.
The project, worth an estimated 40 million euros, is supported by three financiers: African Development Bank (ADB), the Japanese Bank for International Cooperation (JBIC), the Investment and Development Bank of the Economic Community of West African States (ECWAS) and the government of Cape Verde.
“It is an extremely complex project, in technical and financial terms,” Lopes told Cape Verdean news agency Inforpress, explaining the delay in launching the project.
According to Lopes, the CME group will supply and install the high voltage cable and Efacec will supply and install transformer stations, which will increase and/or reduce voltages.
The next step after signing those contracts will be to set up loans, which will take between one and two months.
“After that stage there may be an interval in which equipment and materials are manufactured, and therfore we think that the companies will be on the ground around the end of January,” said Lopes.
According to Lopes the project is fundamentally important to solve the problems Santiago has with production and distribution of electricity. (macauhub)