During a recent parliament session, Opposition Senator Lorraine Henderson-Reid scrutinized the government’s decision to secure an EC$13.5 million bank guarantee for a geothermal power project. Reid requested essential details, including the project’s finance agreement, to make an informed decision. She questioned the economic feasibility of the government’s partnership with Ormat Technologies, Inc. and the impact on DOMLEC’s energy procurement and growth.
Environment activist Atherton Martin shared concerns about the project’s economic risks, suggesting that geothermal energy might not be viable for Dominica’s size and could hinder the country’s investment climate and sustainable development.
Meanwhile, the Finance Minister, Dr. Irving McIntyre, moved to authorize the bank guarantee, emphasizing the government’s commitment to renewable energy. However, Reid-Henderson’s inquiries underscored the need for transparency, particularly regarding how DOMLEC will manage its energy commitments and the potential takeover by Ormat Technologies, Inc.
As discussions unfolded, Henderson-Reid emphasized the lack of revenue projections from the government, questioning the repayment of loans used for the project’s development. She pointed out that all earnings for the next 25 years from geothermal production would belong to Ormat Technologies, leaving unclear how the government plans to achieve a return on investment.
The session highlighted the complexities of transitioning to renewable energy sources and the importance of detailed project information to ensure the country’s financial and environmental interests are safeguarded.
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