Scrutiny Over Dominica’s Geothermal Power Plant Proposal

As the parliamentary session in Dominica looms on December 29, 2023, former opposition leader Lennox Linton has voiced concerns over the government’s proposal to secure a bank guarantee for EC$13.5 million. This funding is earmarked for the construction of a 10-megawatt geothermal power plant in Laudat, a project designed to exploit the island’s geothermal potential and reduce dependence on fossil fuels.

Transparency Called into Question

Linton, who once represented the Marigot constituency in parliament, has criticized the scant transparency regarding the performance risk tied to the geothermal project. He argues that these risks have not been adequately communicated to the public. Under the stewardship of Dr. Irving McIntyre, Minister for Finance, Economic Development, Climate Resilience, and Social Security, the government plans to present a motion for the bank guarantee from the National Bank of Dominica. This guarantee is a critical part of the project’s financial structure, as outlined in the agreement with the Geothermal Power Company of Dominica 2023 Limited and Ormat Technologies Inc.

The Geothermal Project: A Transfer of Power

The government maintains that, after 25 years of operation, the power plant will be transferred to the state, without any financial burden. However, Linton has questioned the wisdom of seeking this guarantee, citing the revenue accrued from the Citizenship By Investment (CBI) program and positing that alternative collateral could be used. He has also expressed concerns about the management of funds from the CBI program, suggesting a need for improved accountability and transparency in government financial decisions.

Political Shifts on the Horizon

In a related development, the National Joint Action Movement (NJAM) has acknowledged Lennox Linton’s resignation as the Political Leader of the Opposition United Workers Party, a role he held for nine years. As Dominica prepares for the parliamentary session and the potential approval of the geothermal plant’s funding, the political landscape continues to shift, reflecting the country’s evolving energy and environmental needs.