Arnold & Porter Advises Caribbean Development Bank and CARICOM Development Fund on Landmark Geothermal Project Financing in Dominica

Arnold & Porter represented the Caribbean Development Bank (CDB) and CARICOM Development Fund (CDF) in their $50 million project financing of Ormat Technologies’ 10MW geothermal project in Dominica’s Roseau Valley. The transaction is the first project financing of a geothermal project in the Caribbean. CDB and CDF’s financing will support the development, construction, and commissioning of Dominica’s first geothermal project, with project capital cost of approximately $62 million. The project is structured under a concession agreement granted by the Commonwealth of Dominica, and subject to a long-term power purchase agreement with Dominican electric utility DOMLEC.

The deal underscores the growing momentum behind renewable (and particularly geothermal) energy development in the Caribbean and demonstrates innovative approaches to climate finance. Once operational (expected by January 2026), Dominica will generate over 63% of its electricity supply through clean, renewable energy, displacing Dominica’s reliance on imported fossil fuels such as diesel, lowering and stabilizing electricity costs, and significantly cutting carbon emissions to support Dominica’s climate commitments.

The Arnold & Porter team was led by partner Chris Willott together with partners Raul Herrera, Mélida Hodgson, and Marc Isaacs, associates Noel Abdala-Arata, Mateus Maia, and Ada Tonkonogy, and counsel Arturo Caraballo.