$500 million Loan for Geothermal is At Risk

The Costa Rican Congress decided not to approve a $500 million loan that the state run power company wants to take out with the IDB to finance geothermal power generation projects in the country.

Friday, August 4, 2017

The deputies argued that they were not clear about the financial situation of the Instituto Costarricense de Electricidad (ICE), which would receive the loan, for which the State would act as guarantor. The decision to halt the loan approval comes two days after President Solis announced he is facing a liquidity crisis.  

Deputy Mario Redondo told Nacion.com that   "... This is about an entity (the ICE) of which we have no clarity about its financial statements, because the Legislative Assembly must seek transparency regarding a loan such as the one in which we are now involved."

"... It is a cooperation agreement with the Inter-American Development Bank (IDB) to finance investment projects for a program for renewable energy, transmission and distribution of electricity signed on February 5, 2016 between that international entity and the Government of Costa Rica acting as guarantor."

With the IDB loan, the state power company was planning to complete the Borinquen I and Las Pailas II geothermal projects and improve the transfer line from Guanacaste and its connection with Central America.

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More on this topic

Renewable Energy: $500 million for New Plants

May 2018

The Congress of Costa Rica has finally approved a $500 million loan for the state electricity company to carry out electric generation and transmission works, including three geothermal plants.

Of the total amount of the loan with the Inter-American Development Bank (IDB) approved by the Legislative Assembly, close to $200 million will be used to finance the Pailas II, 50 MW, and Borinquen I, 55 MW geothermal projects, both in Liberia, Guanacaste. 

Progress in 55 MW Geothermal Plant Project

June 2017

Costa Rica's state-owned power company has signed a $240 million loan with Japan to build the Borinquen I geothermal plant in Liberia, which could start operating in 2023.

The construction project for the geothermal plant will require a total investment of $374 million, of which $240 million will be covered by the loan from the Government of Japan and the remaining amount, with funds from the Inter-American Development Bank and resources from the Instituto Costarricense de Electricidad (ICE).

Costa Rica: $500 million for Geothermal Plant

December 2015

With a loan from the IDB it is hoped that the state power geothermal projects Pailas Borinquen I and II will be completed and improvements made to the transfer line from Guanacaste and its connection to Central America.

The plan by the Instituto Costarricense de Electricidad (ICE) is to invest the proceeds of the loan between 2017 and 2025, starting with projects under development in Guanacaste, Borinquen Pailas I and II.

Nicaraguan Geothermal Project After IDB Funding

April 2010

Ram Power, developer of Geothermal Power Plant San Jacinto Tizate, asked the IDB for $40 million in funding.

The Inter-American Development Bank would loan $40 million for constructing the second phase of the plant, that would take the project’s total generation capacity to 72 MW.

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