EIB Provides €4.3M for Renewable Energy Project in South Pacific
October 5, 2009 // Published as a news service by IHS
The European Investment Bank (EIB) agreed on Sept. 29 to provide €4.3 million (650 million vatu) to support the construction of a 2.75-megawatt wind power farm on the island of Efate, Vanuatu, in the South Pacific.
The wind farm, being built by Unelco Vanuatu Ltd., is the first to be implemented in Vanuatu, and the EIB hopes it will form a reference project for other Pacific islands.
The wind farm comprises 10 identical 55-meter-high wind turbines designed to be winched to the ground when required for maintenance or to avoid wind damage in the event of a tropical cyclone.
It marks an important first-step in diversifying sources of electricity supply and reducing dependence on expensive fossil-fuel imports. It will reinforce Unelco's strategy to develop renewable energy production based on wind turbines, biofuels and solar energy.
The project forms part of European Union (EU) and EIB policy to encourage renewable energy objectives and address the impacts of climate change resulting from fossil fuel use.
Particular attention has been taken to ensure no environmentally protected zones or areas of cultural significance are affected by the project, and to minimize any risk of bird strikes by the wind turbines. The wind farm will also provide local employment and help to improve the environmental image of the country.
This project is one of a number of initiatives financed by the EIB in the South Pacific region currently being approved during a regional tour by EIB representatives. In Vanuatu, five other EU-funded projects using biofuels and wind energy are already being implemented in Port Orly, Malekuka, Ambae, Futuna and Sola.
Background
The European Investment Bank was set up in 1958 by the Treaty of Rome as the long-term lending bank of the European Union. The EIB has significantly increased its contribution to the long-term development of the Pacific countries economies over the last five years.
In line with priorities set by the Cotonou mandate and in close cooperation with the European Commission, financing of private sector and environmental projects will remain center stage in future EIB activities. EIB lending in the Pacific builds on the region's strengths supporting and promoting economic growth and employment.
Since the start of operations in the Pacific, the EIB has funded loans and equity worth over €380 million to support economic activity in a region hampered by the high cost of developing infrastructure across widely dispersed and remote small island countries.
Source: European Commission (EC).