Prime Minister Criticizes World Bank Lending Policies

On Friday, Prime Minister Roosevelt Skerrit criticized the World Bank and its lending policies to countries in the Caribbean, including Dominica, as they seek to develop alternative forms of energy.

World Bank-Funded Construction of New Electricity Transmission Network

Speaking at the signing ceremony for the World Bank-funded US$38.5 million construction of a new electricity transmission network, Skerrit said that the funding should have been given to Roseau as a grant rather than a loan.

Key Component of Geothermal Project

The agreement was signed with the Indian-based Kalpataru Projects International of Latin America. The transmission network is a key component of the geothermal project being undertaken here.

Energy Minister’s Comments

Energy Minister Dr. Vince Henderson said the company will construct 10 kilometers of transmission line with substations starting from Laudat into Fond Cole on the capital’s outskirts, adding, "We are very excited about that milestone."

Schedule and Timeline

Dominica hopes that all equipment for the power plant will be on the island this month. Construction on the island’s first 10-megawatt power plant will begin in December 2025, with a completion date set for that year.

Criticisms of World Bank Lending Policies

Skerrit said that in the bigger scheme of things, he is speaking to the larger shareholders, the directors of the World Bank, who form the G7 in particular. There is no reason why a country like Dominica should have had to borrow money from the World Bank to build this transmission line or invest in geothermal.

Importance of Geothermal Energy

Skerrit emphasized that geothermal energy ticks all the boxes when it comes to responses to climate change, adaptation, resilience building, reducing the carbon footprint, and all the other boxes. It is important for the economy of Dominica, and the country has the case study to be done on it.

Project On Schedule

In December 2023, the Government of Dominica signed an agreement with Ormat Technologies Inc. of Nevada, USA, to finance the construction of the plant and operate and maintain it for 25 years. Henderson said the project is on schedule, and if it goes well, the plant will be commissioned in early 2026.

Conclusion

The article highlights the criticism of the World Bank’s lending policies by the Prime Minister of Dominica, specifically in relation to the construction of a new electricity transmission network. The project is part of the country’s geothermal energy initiative, and the Prime Minister believes that the funding should have been provided as a grant rather than a loan.

FAQs

What is the purpose of the World Bank’s lending policies?
- The purpose of the World Bank’s lending policies is to provide financial assistance to countries for various development projects.
Why did the Prime Minister criticize the World Bank’s lending policies?
- The Prime Minister criticized the World Bank’s lending policies because he believes that countries like Dominica should have access to funding as a grant, rather than a loan.
What is the significance of geothermal energy?
- Geothermal energy is important for responses to climate change, adaptation, resilience building, reducing carbon footprints, and other environmental concerns.
What is the schedule for the project?
- The project is on schedule, with all equipment expected to be on the island this month, and construction to begin in December 2025, with a completion date set for 2025.