DailyPost Administrator posted on October 17, 2008 18:15
Sources not far from the European Union have confirmed that negotiations are in progress between UNELCO and the EU for an approximate Vt400 million loan to complete the Windmill Farm at Devil’s Point.
The farm will have 10 windmills and will be able to supply 25% of power need to Port Vila. The works should be completed by the end of the year.
On the side of the EU, the European Investment Bank is to offer approximately 400 million Vatu loan to complete the project.
This loan has a subsidized interest rate, which makes it more attractive to the Power Company and customers.
According to our sources, UNELCO can only get access to the subsidized loan if subsidies are automatically transferred to the cost billed to customers.
In practical terms, this means that customers’ bills should be reduced accordingly after UNELCO gets the loan.
If the loan is consolidated, it will be another push to the use of renewable energy in Vanuatu.
The Department of Energy has said the list of renewable energy projects are integrated by last year’s project in Port Orly using coconut oil and 3 more ongoing in Malekula, Ambae and Sola (Torba), using the same natural resources and implemented by UNELCO; another one in Futuna and Aneytum islands using wind power implemented by the NGO VANREPA. All the above, funded by the European Union.
There is another ongoing one in the island of Nguna, implemented and paid for by UNELCO.
If the loan by the European Union to UNELCO is confirmed, it will mean that by the end of the year Vanuatu will be leading Pacific Island countries in the use of renewable energy: a very practical way to ease our suffering pockets.