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.
The government reported that the Inter-American Development Bank has approved a $20 million loan to finance renewable energy projects managed by small and medium enterprises.
Vice President Rosario Murillo told government media that "... the IDB gave no objection to Banco de la Producción (Banpro) who will give loans to small and medium-sized renewable energy companies," this is reported by Iván Acosta, Minister of Finance, who in turn received the note from Francisco Mayorga who represents us at the IDB."
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.
The Inter-American Development Bank has approved a $23 million loan to renovate the Canaveral - Rio Lindo hydro station and its connection to the national grid.
From a statement issued by the Inter-American Development Bank (IDB):
The Inter-American Development Bank (IDB) has approved a loan to Honduras for $23 million for the renovation of infrastructure for generation at the Canaveral - Rio Lindo hydro station; renovation of transmission assets that connect the station to the national grid; and improving operational and commercial efficiency of generation management of the National Electricity Company (ENEE).
The entity will fund up to 40% of the cost of the plants required by the tender held by Distribuidora Del Sur.
The generation of 359 MW of power needed to fulfil the long-term contract given Delsur cannot be achieved without expanding the production capacity with new plants.
However, given the high cost of the project, the Inter-American Development Bank has approved financing for almost half the cost of it, opening up possibilities for Delsur.
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.
From Bnamericas.com: “This year, Ram Power announced it would team with the IDB and the International Finance Corporation to execute the second phase of this project, that requires a total $154 million in funding”, reported Bnamericas.com.