CDB announces financial close for Dominica geothermal power project
Aerial photo of the construction of the 10-MW geothermal power plant, showing the condensers and OEC units (source. Geothermal Power Company / Ormat)
Carlo Cariaga
2 Sep 2025
The geothermal power project in Dominica has reached financial close as construction work continues towards a target start of operations by end of 2025.
The Caribbean Development Bank (CDB) has announced the financial close on a facility for the 10-MW geothermal power project in Dominica. The facility is made available to the Geothermal Power Company of Dominica (GPC), a wholly owned subsidiary of Ormat Technologies Inc.
The power plant development phase is being implemented as a private sector-led initiative, with CDB acting as the lead financial arranger. Funding has been received from the following:
- USD 34.8 million as concessional funding, USD 25.4 million of which is provided by the Green Climate Fund and mobilized through the Inter-American Development Bank
- Another USD 9.4 million from Canada’s Supporting Resilient Green Energy Initiative in the Caribbean (SuRGE) programme
- USD 15 million loan from the CARICOM Development Fund (CDF) as part of the Country Assistance Programme for Dominica
Construction work on the geothermal power plant broke ground in June 2024, and the facility is targeting a start of commercial operations by December 2025. An update given in April 2025 indicated that the installation of the air-cooled condensers unit and heat exchangers has been completed, and that all major equipment have arrived on site. A more recent update given by Minister for Energy Dr. Vince Henderson in August 2025 indicated that the construction work is now about 90% completed.
The project is expected to enhance energy security, stabilise tariffs, cut greenhouse gas emissions, and drive long-term economic growth. It also supports Dominica’s climate resilience and development goals while creating opportunities to engage in the global market for green energy products such as green electricity, green hydrogen, and green ammonia
“This is a pivotal transaction for the Bank, for the Commonwealth of Dominica, and for the region. It showcases the potential of blended concessional finance to mobilise private sector expertise and deliver transformative clean energy solutions in small island developing states,” said Mr. Isaac Solomon, CDB Vice President of Operations.
The development of this truly green, resilient and renewable energy infrastructure in Dominica is a massive step forward for the island and the wider region. We are pleased to see our regional financing partners take a lead role in providing concessional financing for this initial 10 MW geothermal power plant,” added the Honourable Vince Henderson, Minister of Foreign Affairs, International Business, Trade and Energy for Dominica.
Source: Caribbean Development Bank and Dominica News Online
