On April 23, the Kuwait Fund for Arab Economic Development granted Cuba a loan of 30 million dollars to finance the construction of 34 small hydroelectric plants.
The loan represents an important contribution to government efforts to promote renewable energy, stated director general of the Electric Union (UNE), Liván Arronte.
The loan has favorable payment conditions, noted President of the Foreign Bank of Cuba, Manuel Vale Marrero, adding that from a financial point of view, all loans granted to Cuba through the Kuwait Fund have a long-term repayment plan with beneficial terms for the country.
According to the UNE director general, the 34 mini-plants, with a total generating capacity of 14.6 megawatts, will be built in existing dams in 11 of the countries provinces and connected to the national electrical grid.
The project also includes the creation of new building capacities, with the purchase of construction and transportation equipment, installation of interconnecting electric power lines, improvement of access routes and job creation in rural zones.
The agreement was finalized with the signing of three accords: the first, with the Cuban Foreign Bank, the second with the Ministry of Finance and Prices, and the third with the Electric Union. Following the signing, Director General of the Kuwait Fund, Abdulwahab Al-Bader, noted that the agreement represents the fifth loan made by the organization since 2005 to support investment works on the island.
Al-Bader stated that prior loans helped finance repairs to aqueduct and drainage systems in the eastern provinces of Santiago de Cuba and Holguín, as well as in Havana, where works are currently in the completion stage.
The director highlighted his satisfaction at being able to contribute to the creation of small hydroelectric plants, which will help expand the use of renewable energy sources, a priority both for Cuba and the Kuwait Fund.