ADFD to finance two renewable energy projects |13 March 2018

The Abu Dhabi Fund for Development (ADFD), the leading national entity for development aid, yesterday announced an allocation of AED64.2 million for the development of two projects in Seychelles that will enhance the country's capacity to produce renewable energy from sustainable resources.

Confirming the Fund’s support, His Excellency Mohammed Saif Al Suwaidi, director general of ADFD signed two agreements, the first with Didier Dogley, Seychelles’ Minister for Environment, Energy and Climate Change, and the second with Philip Morin, chief executive of the Public Utilities Corporation (PUC).

This was in the presence of His Excellency Jean-Claude Adrienne, Ambassador of the Republic of Seychelles to the UAE, as well as Adnan Z. Amin, director general of the International Renewable Energy Agency (IRENA) and several officials from the Abu Dhabi Future Energy Company (Masdar).

The first agreement includes the allocation of AED31.2 million towards a solar farm that will be developed by Masdar on the reclaimed island of Romainville, while the second agreement involves an investment of AED33 million for the installation of a 33kV power grid in the island of Mahé.

Speaking on ADFD’s latest synergy with the government of the Seychelles, His Excellency Mohammed Saif Al Suwaidi said: “Since 1979, ADFD has shared outstanding relations with the government of the Seychelles. We have successfully financed development projects to the tune of AED399 million across various regions in the country. These projects are focused on strategic sectors that promote sustainable economic development in the Seychelles including housing, telecommunications, transport and energy.

“Our latest initiative to fund two high-potential projects in the Seychelles validates our sustained efforts to promote the widespread adoption of renewable energy in developing countries. The funding also reiterates ADFD’s commitment to supporting the efforts of the government of the Seychelles in meeting the country’s energy needs from sustainable resources.”

Appreciating ADFD’s active role in extending development assistance to the Seychelles, Minister Dogley said: “The two agreements we signed today will contribute to the development of the energy sector and meeting the increasing demand for electricity in the Seychelles. The Abu Dhabi Fund for Development has become one of the most important international funding organisations for its significant contribution to achieving sustainable development on a global scale. We commend its success in financing development projects across the world.”

The solar farm project in Romainville island is financed as part of the fourth funding cycle of IRENA/ADFD Project Facility launched in 2013. The five MW project is designed to contribute to the economic and social development of the Seychelles through supporting the energy sector and increasing the share of renewable energy in the country’s energy mix. Anticipated to benefit nearly 90,000 people, the solar farm will also include storage batteries helping stabilise electricity prices in the island and reduce its dependence on biofuels.

Meanwhile, the 33kV power grid project on the island of Mahé will oversee the installation of a 12.5-kilometre line along with two feed stations to strengthen the transmission and distribution network. Built at an estimated cost of US $10.5 million of which US $9 million will be provided by ADFD, the project is set to meet the electricity demand driven by the growth of commercial, residential and tourism establishments on the island.

The Abu Dhabi Fund for Development is a national organisation owned by the Abu Dhabi government. Established in 1971, its purpose is to help emerging countries by providing concessionary loans to finance sustainable development projects alongside other long-term investments and direct contributions. In addition, the Fund manages government grants offered by the Abu Dhabi government and monitors the course of the relevant projects. To date, it has invested around AED80 billion in development projects across 88 countries.