In order to plan their investments, employers from the energy sector are asking for information on the prices negotiated for the electricity that will be provided by the operator of the Tumarín hydroelectric station.
Prensa.com.ni reports that "... Not knowing the rate charged for the generation of electricity from the Tumarín hydroelectric station causes uncertainty for other investors in the sector due to the fact that they do not know the conditions in which they would be competing and therefore, whether or not to promote new projects. The private sector is demanding transparency from the government and that they disclose details of the agreement with Centrales de Hidroeléctricas de Nicaragua (CHN), the concessionaire of Tumarín. "
Although the cost per MW has not yet been defined, the government of Nicaragua has signed a construction contract with the Brazilian consortium and announced that work will begin in the first quarter of 2015.
After several failed attempts to start construction of the hydroelectric dam Tumarín, the government announced that it has reached an agreement with the consortium Eletrobras and Queiroz Galvao to start work in the first three months of 2015.
Conditions of the agreement between the Nicaraguan government and the consortium of Brazilian companies are unknown.
In regards to the agreement for the construction of the hydroelectric station only the price of the energy generated is known, which will be between $118 and $125 per megawatt.
However Emilio Rappaccioli, Minister of Energy and Mines, "made no mention of the energy rate that was negotiated and would only say that "we are signing the document ensuring that the project will become a reality, and construction will be starting, I would say, in three or four months time, concluding at the end of 2018. "
Nicaragua and the concessionaire CHN have signed a concession agreement in which the Brazilian company promises to start construction in mid-2014.
The largest hydroelectric project in Nicaragua has so far read like a never ending story, as over the last few years a number of announcements have been made for the start of its construction, which until now has been hampered by lack of agreement on the tariffs that will be set by the Brazilian company for electricity sales.
The Tumarín hydroelectric project by the Brazilian company Centrales Hidroeléctricas de Nicaragua, has not recorded any material progress, despite repeated announcements of the start of construction.
An article published in Elnuevoherald.com reiterates statements by the President Centrales Hidroeléctricas de Nicaragua, Marcelo Conde, that financing of $1.110 billion, the cost of the works, is being secured with the Central American Bank for Economic Integration and the Banco Nacional de Desarrollo Económico Social de Brasil, and that construction will begin in the next few months.
The dam, which will generate 253 megawatts of power, requires an investment of $1100 million over four years.
Constructing two camps to house staff and space for the machinery to be used in the project will form the basis of the preparation phase prior to the start of construction of the hydroelectric dam.
The energy generation project, which will be developed by the Hydroelectric Company of Nicaragua (CHN), created by the Brazilian state company Eletrobras and the conglomerate Galvo Queiroz, will be erected in the town of La Cruz de Rio Grande in the South Atlantic Autonomous Region .
The $300 million loan from a bank in China contains the condition that the company Sinohydro be allowed to participate in the project in Costa Rica.
The funding of $300 million accounts for 25% of the total cost of the works, said Teofilo de la Torre, chief executive of the Instituto Costarricense de Electricidad (ICE).
The executive from the ICE, said the institution is analyzing the request and that the decision will be taken before the end of this year.
ICE analyzes proposals from Electrobrás and Sinohydro for the Reventazón project.
Gravin Mayorga, manager of the Instituto Costarricense de Electricidad (ICE), said that participation of one or the other at the proposed $ 1.200 billion power plant will depend on the financial proposals offered. "In their interest to participate, these companies are endorsed by financial institutions in their countries.
The Brazilian state company could invest together with local authorities and private agents.
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.”
Construction of the $600-million project is expected to start no later than May 2010.
This project will contribute 25% of the country’s energy supply, and could be operational in 2014.
Tumarín Hydroelectric power will be located on the ‘Grande de Matagalpa’ river, and will be constructed by the company Queiroz Galvâo, in association with Brazilian state-owned corporation Electrobras.