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Seychelles has secured US$31mn in funding from Arab Bank for Economic Development in Africa (BADEA) and the Saudi Fund for Development to improve electricity network in the island nation
The joint loan will be utilised by country’s Public Utilities Corporation (PUC) to build a 33kV transmission and distribution (T&D) electricity network for the southern region of the main island of Mahé. BADEA will fund US$11mn while the Saudi Fund for Development would provide the remaining US$20mn.
Construction expected to begin in 2016, PUC has already started to extend the distribution network from Roche Caiman up the international airport on the eastern coast of the main island of Mahé, according to Seychelles News Agency.
Chief executive officer of PUC, Philip Morin, said, “The 33kV transmission and distribution network will start at the Roche Caiman power station down the eastern coast and into the south and then back up along the West Coast to Anse Boileau where PUC has an existing 33KV network.
“Demand is continually increasing with a large number of hotel developments earmarked for the South of Mahé and a number of existing hotels today are not connected to PUC’s electricity network and are producing their own electricity.”
The Seychelles government is also contributing US$5mn towards the project. According to the Seychelles’ Finance Ministry, the US$11mn loan will be reimbursed over 22 years at an annual interest rate of 2.5 per cent and that the agreement also includes a grace period of five years.