The IFC, a member of the World Bank and Oesterreichische Entwicklungsbank AG (OeEB) will provide $98 million to fund the largest hydropower project in Honduras, to be built by Compañía Hondureña de Energía Renovable S.A. (COHERSA).

The project will generate 181 gigawatt hours of electricity per year, and will be financed with a principal loan granted by the IFC, and another syndicated one to be provided by the Development Bank of Austria (OeBD).

The Vegona is the first renewable energy project in Honduras to be developed by the IFC. It is expected to start operations in 2013 and will cater to hundreds of homes around the country.

Additionally, the Vegona will help improve the competitiveness and sustainability of Honduran exports, by providing access to clean energy at lower costs.

An article in Ifc.org adds that "the project is expected to generate about 500 jobs in the construction phase alone."

Source: Hondurasweekly.com

More on this topic

$15 Million Funding for Two Hydropower Projects

September 2013

The CII is to finance the construction of two hydroelectric plants with a combined installed capacity of 30.65 MW.

From a press release by Corporación Interamericana de Inversiones (CII):

Corporación Interamericana de Inversiones (CII) has approved a loan of up to $9 million for Generadora San Mateo S.A.

IDB Loans $200m for Hydropower Station in Costa Rica

October 2012

The loan has a maturity period of twenty years and is part of the $1.2 billion required for the construction of the hydroelectric plant Reventazón.

A statement from the Inter-American Development Bank (IDB) reads:

The hydroelectric plant project Reventazón, in Costa Rica, is to receive funding from the IDB

Feasibility Study for Hydropower Development in Honduras

August 2011

The Secretary of State will receive expressions of interest for the Feasibility Study for the Mixcure River hydroelectric development project.

Services required include the development of consultancy project entitled "Feasibility Study of Hydropower Development at Mixcure River, Environmental Assessment and Elaboration of Implementation Strategy for Hydroelectric Development at Mixcure River," the objective of the consultancy is to provide ENEE and higher authorities with a feasibility study on Hydroelectric Development at Mixcure River and an implementation strategy that will allow the Government of Honduras to execute the renewable energy project according to the law.

Funding Requested for 38.5 MW Dam in Honduras

November 2010

The Honduran Renewable Energy Company (Cohersa) submitted a funding request to the IFC for the project, called "La Vegona."

The Hydroelectric Project La Vegona, capable of 38.5 MW, is a project which will use the Comayagua Humuya river for renewable energy production, providing electricity equivalent to more than 46,000 households in Honduras.