Japan to grant loan to Cape Verde to modernise power distribution grids

2 April 2012

Japan has agreed to loan 60 million euros to Cape Verde for a project to increase production capacity, transmission and distribution of electricity on six of the archipelago’s islands, Cape Verde’s Foreign Minister, Jorge Borges said.

Santo Antão, São Vicente, Sal, Maio, Santiago and Fogo are the islands that will benefit from the project to modernise the power grids and the project includes installing a supervisory system that will make it possible to manage the archipelago’s wind farms better.

According to Borges, the project will increase access to electricity on the six islands, as well as modernising the electricity grids.

As well as the funding provided by Japan, the project is co-funded by the African Development Bank (ADB) and by the Cape Verdean government.

It is the second agreement between Japan and Cape Verde in this area and the first, which was signed in 2008, was intended to increase the capacity of the Palmarejo power plant and build the transmission line to Tarrafal, in the interior of Santiago Island.

The government of Japan has provided development aid to Cape Verde since its independence and each year provides food aid, the funds from the sale of which are used to carry out agricultural projects. (macauhub)