The government of Cabo Verde (Cape Verde) has approved taking on a loan of 26 million euros to be granted by the French Development Agency to finance the modernisation works of the power plant of Palmeira, on Sal Island, reported Cape Verdean weekly newspaper A Semana.
The loan provided by the French Development Agency (Agence Française de Développement, AFD) will be paid back over a period of 15 years, after a five-year grace period, in 30 consecutive half-yearly installments.
The works in question are intended to increase power production capacity and improve integration of renewable energy into the island’s system.
The project’s tender document outlines, for example, that the current thermal power plant cannot meet demand, as some of its generators are obsolete, as well as the fact that the high proportion of renewable energy – 35 percent of the total in 2013 – causes to stability problems in the grid.
According to the newspaper, the works include, the purchase and installation of three 3.5 megawatt generators, modernisation of some facilities such as the waste oil incinerator, the fire prevention system and fuel park . (macauhub/CV)