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.
With a loan from the IDB, plans are underway to carry out road renovation works on the cantonal road network, especially in the areas affected by storm Nate in 2017.
For the 61 projects in the first stage ofPRVC II, the MOPT estimatesholding approximately 12 tenders, each of which will include between four and five projects. As part of a second stage, around 64 projects will be worked on, which correspond to about 41 million dollars and are currently in the analysis phase.
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.
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.
The Central American Bank for Economic Integration has announced that this month it will deliver 55% of the funds required to implement the customs union between the two countries.
The funds pending for the implementation of the Customs Union between Guatemala and Honduras are being managed by the Central American Bank for Economic Integration (BCIE) for a total of $1.5 million for delivery in February.
The financing agreement between the IDB and the government provides funds to complete the geothermal plants Pailas II and Borinquen I and II of 55 MW each, and other electrical infrastructure.
From a statement issued by the Ministry of Finance:
Authorities at the Ministry of Finance, the Costa Rican Electricity Institute (ICE) and the Inter-American Development Bank (IDB) signed a cooperation agreement to finance investment projects CR-X1014 for an amount up to $500 million.
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.
The Legislature has approved a special budget for road renovation works, road widening, construction of overpasses and breakwater at berths.
From a statement issued by the Legislative Assembly of Costa Rica:
With 44 votes in favor lawmakers approved on its second reading record 19464, modification No. 9289, Act RB extraordinary Republic Act for fiscal year 2015 and the first special budget of the Republic for the fiscal year 2015.
Of the $200 million from the IDB and which has been available since 2011 for municipal road infrastructure works, up until December 2014 only $29 million has been utilised.
So far, only 14 projects have been completed, a further 43 have been awarded, 102 are in process and 134 are awaiting development. All municipalities can access funds from loans granted by the IDB, however, 10 cantons have not submitted any projects to tender.
The Inter-American Development Bank has loaned $35 million to a cooperative to be used to grant housing loans under $109,000.
Of the total loan, $25 million will be administered by the National Cooperative of Educators (Coopenae) and the remaining $10 million by other entities.
The manager Coopenae Housing, José Manuel Salazar told Nacion.com that "...
A loan has been approved by the Inter-American Development Bank and the Fund for Chinese Cofinancing to repair roads and build bridges in different parts of the country and carry out port works in the Pacific.
Ministers approved, on its second reading, a loan which will finance the Transportation Infrastructure Program (PIT by its initials in Spanish), which will be used to repair roads and make other improvements to road infrastructure mainly in the northern and central Pacific parts of the country.
Countries may submit projects to the Inter-American Development Bank and the Japanase International Cooperation Agency in order to apply for funding.
From this week the International Cooperation Agency of Japan (JICA) and the Inter- American Development Bank (IDB ) will be looking at various opportunities to fund renewable energy and energy efficiency in the region.
With funds from the IDB managed in a trust by Banco Nacional, the Ministry of Education will build new schools.
Banco Nacional (BN) will be responsible for managing a trust worth $167.5 million to be used for the construction of 79 schools and 24 recreational areas. The loan was granted by the Inter-American Development Bank (IDB).
The only thing now pending is approval from the Attorney General of the Republic for the start of construction, which it is hoped will start in the middle of the year.
On December 4th Fitch Ratings will hold a conference entitled 'Challenges and Opportunities for Structured Finance and Infrastructure in Central America and the Caribbean.'
Securitization of Assets, an Option for Capital Markets in the Region, is one of the subjects to be discussed in the event's agenda. Participants will include Marielena Garcia, SVP of Investment Banking at MMG Bank Corp, Alberto Gutierrez, president of Titularizadora Colombiana, John Rauschkolb, General Manager La Hipotecaria and Diego Torres, vice general manager of BHD Valores Puesto de Bolsa.
Banco Nacional de Costa Rica has earmarked part of the $1 billion it raised in foreign markets for energy and infrastructure projects.
In the next few months Costa Rica's Banco Nacional (BNCR) will provide $300 million for hydropower and wind projects. Another $400 million will be used to refinance short term credit lines with foreign banks and the last $300 million will stay in an account abroad awaiting other interesting projects, explained the manager of the company, Fernando Naranjo.
The Bank of Costa Rica and the Foreign Trade Promotion Office are to launch a credit program for exports.
"Funding is one of the main barriers to the development of the national export sector, preventing our companies from realising their true potential. This program will directly benefit over 2,000 exporting companies from all over the country," said Mario Rivera, general manager of the BCR.