Honduras: Conditions Put On Italian Loan for Hydropower

Failure to comply with the conditions set by Italy is threatening the $32 million needed to finish off the Nacaome dam.

Friday, February 14, 2014

In March an Italian mission will be visiting Honduras to discuss the progress of the commitments agreed in order for a loan to be granted for the Nacaome dam. "The overall amount of funding for developing irrigation components, water and electricity is $160 million, of which $32.6 million will be for the construction of eight gates in the dam to generate 30 MW."

However, some situations are jeopardizing Honduras' access to this financing. Paolo Tedesco, the liaison to the Italian government for the project, explained that "they have not complied with the guarantee of water, as in the summer all of the generation of electrical energy is consumed, which jeopardizes the components for human consumption and irrigation. "

"The second commitment requested by Italy is the titration of 4,300 hectares of land for irrigation, where there has been little progress and what is required is that each of the 2,500 participating families has a title to their property."

At a meeting to be held next month "agreement will be made over the deadlines for fulfilling the commitments agreed by the parties. The Italian official said the meeting will be key to deciding the future of the $160 million ... ".



More on this topic

Honduras: Lack of Funding for 1,000 MW

November 2013

Of the 80 hydroelectric projects approved four years ago by the Honduran Congress only four are in operation and seven others are just starting to be built.

According to Roberto Cardona, Secretary of Natural Resources, "the recent installation of a working group for renewable energy which integrates potential local and international financial institutions and international cooperation agencies is an option to advance in the construction of hydroelectricity stations" , reports Laprensa.hn.

Honduras: Italy Invests $31 Million in Nacaome Region

June 2010

The funds will be used in to build a hydroelectric power plant, called “José Cecilio del Valle”, and to develop irrigation projects in the area.

Mauro Marazoma, Italian spokesperson in Honduras, remarked that they are now organizing the project, to communicate it to local communities and government entities.

$34.3 Million for Honduran Hydro Power Plant

February 2010

Delegates from the Italian Cooperation agency are in Honduras, making the final preparations for donating the money to “José Cecilio del Valle” power plant.

Talks between both parties were suspended after the political crisis of June 28. The funds will be used to build 8 metal structures in the dam, and to develop irrigation projects.

$23 Million for Larreynaga Hydro Power Plant

January 2010

The Government of Nicaragua signed a $22.9 million financing agreement with CABEI.

The Central American Bank for Economic Integration (CABEI) will loan $22.9 million for Larreynaga Hidroelectric Power Plant, in addition to $36.7 million originally approved for this project.

 close (x)

Receive more news about Energy

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


AES Changuinola

In late 2005, AES began developing the Changuinola hydro power project and currently the project is in the phase of building the roadways to access that facility. The formal cornerstone laying ceremony took place on October 25, 2007. The project's total completion represents an investment of approximately $563 million and the estimated date for the Changuinola hydro power plant to go into commercial operation is the first quarter of 2011. Through this new facility, AES contributes to the country's development and helps face the growing demand of energy in Panama, which requires an additional 50 MW each year. The construction of the new Changuinola I Hydro Power Plant: * is an asset to Panama * will generate clean and 100% Panamanian energy * will create opportunities for previously excluded populations * will contribute to solve the country's energy situation * will help Panama to continue growing The construction and operation of the hydro power plant will be under the responsibility of AES, a multinational energy corporation with world-class standards and an active presence in Panama.
Operates in Panama
Phone: (507) 206-2600

Company Profile

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(Jan 22)
Brent Crude Oil
55.050
Coffee "C"
125.35
Gold
1,856
Silver
25.490