Dominica - Second Geothermal Risk Mitigation Project : Additional Financing

Overview & Synopsis

The development objective of Second Geothermal Risk Mitigation Project for Dominica is to integrate geothermal electricity capacity and strengthen the resilience of the national grid in Dominica. This Paper seeks the approval for an Additional Financing (AF) from the Global Environment Facility (GEF)-STAR 8 Grant country allocation to Dominica in the amount of US$5.9 million (net agency fee) and a Guarantee from the GEF Blended Finance Global Program Non-Grant Instruments (NGI) in the amount of US$5.48 million (net agency fee), to support the Dominica Electricity Services Limited (DOMLEC). This second-level of restructuring includes the following: (i) revise the component-wise allocations, disbursement arrangements and estimates and institutional agreements; (ii)introduce Component 3, Guarantee Mechanism for the Domestic Geothermal Power Plant (DGPP) with financing from the GEF NGI, reflected in the project’s revised Theory of Change and the Result Framework to include two new intermediate results indicators; and (iii) introduce a new implementing agency.