Dr. Nivaldo J. Castro, coordinator of the Research Group of the Electricity Sector (Gesel), revealed the information to La Prensa Grafica. The executive is in the country making a diagnosis of the electricity sector and possible expansion.
"By ensuring participation of Eletrobras in a project, funding is guaranteed by the National Bank of Economic and Social Development (BNDES). El Salvador already has a line of credit for $ 800 million for projects to be carried out by Brazilian companies.”
Since litigation began in 2008 regarding the funding of LaGeo, investment plans in El Salvador have ben stalled, but are now coming back into effect.
An article in Laprensagrafica reports that the company Enel will invest $127 million in El Salvador next year as part of the original plan which was based on an agreement with shareholders that the Italian company would provide more capital, in exchange for just over 50% of the shares of the geothermal company LaGeo. This investment plan has been frozen since 2008 after ENEL began arbitration proceedings against ENEL Investment Energy (INE) and the Lempa River Hydroelectric Executive (CEL) because they wouldnt allow the funding.
El Salvador announced a renewable energy investment plan which will increase the share of this type of power to 70% of the energy matrix.
The President of the Executive Hydroelectric Commission of the Lempa River (CEL), Leopoldo Samour, explained that "this will increase energy production by approximately 300 megawatts, coming from use of our natural resources and in order to do this we are planning a global investment of $916 million. "
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