The IDB is providing $40 million in financing for construction of power substations in the north and $90 million for renovation of roads in Jinotega and Chontales.
From a statement issued by the National Assembly of Nicaragua:
$40 million for electrical substations
A $40 million loan signed with the Interamerican Development Bank (IDB) was approved on February 16 by the plenary, which will be used to fund the construction of three new substations.
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 region still needs to install at least 7,000 MW by the end of the decade and make investments of between $12,000 million and $18,000 million."
While in Panama the energy supply needed to meet the demand of its growing economy falls short, to the north of the region, in Guatemala, there is surplus energy but generators are unable to sell it due to the lack of regulations governing the futures contracts and because the Siepac (Regional Electricity Transmission System) project is still does not working 100%.
The link through SIEPAC allows Honduras to purchase cheaper energy from Guatemalan private power generators.
The opening of the penultimate stage of the Central American network opens up a new way for Honduras to obtain energy from outside of its domestic market at lower prices.
"The connection between Guatemala and Honduras "will increase transmission capacity in the regional energy market," said Rene Gonzalez, Executive Director of the Regional Operating Agency (EOR).
The loan from the American Development Bank is aimed at developing the country's power sector.
As reported by the institution, $152 million will finance investments in generation, transmission and distribution of electricity, and about $98 million will go to the Reventazón hydroelectric project.
"What is more, investment will be made in renewable energy projects and modernization of the Rio Macho hydropower plant to improve performance and its life span. In addition the transmission infrastructure will be strengthened and a new Electricity Control Center built, to meet the quality requirements of the Regional Electricity Market ", reports elfinancierocr.com.
With the new law access will be given funding to promote technology changes that generate cost reductions and savings in energy consumption.
A statement from the Ministry of Energy and Mines reads:
MEM and CNEE drive Energy Efficiency Act project
In a workshop organized by the Ministry of Energy and Mines (MEM), and the National Energy Commission (CNEE), with support from the Inter-American Development Bank (IDB), the Economic Commission for Latin America (ECLAC) and the Latin American Electric Power Organization (OLADE) a roadmap has been established in the discussion of the Comprehensive Plan for Energy Efficiency and the Energy Efficiency Act of Guatemala.
The National Assembly has approved two loans from international organizations for financing affordable housing and expanding the electricity grid in rural areas.
$20 million from the Inter-American Development Bank (IDB) and $75 million from the Central American Bank for Economic Integration (BCIE) are to be used for the construction of new homes and for expanding the electricity grid in rural areas.
The IDB loan to the company Renewable Generation and Environmental S.A., will help the implementation of the Los Laureles hydroelectric plant.
The Los Laureles project to be built on the Atlantic coast in the municipality of La Masica, will have an installed capacity of 4.8 MW.
"The investment provides for an expansion of electricity coverage in Honduras as it will enter the national grid system directly, benefiting the entire country and reducing costs, resulting in cleaner and cheaper energy", noted an article in Latribuna.hn
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.
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 IDB will make available $ 1.000 million over the next four years to develop infrastructure and energy projects.
Among projects to be developed is the improvement of the bay area in Panama City, programs to strengthen the energy sector, investments in sanitation and drinking water and programs which strengthen fiscal management.
Prensa.com reports, "Panama will receive an IDB loan for emergency contingencies against natural disasters.
IDB funds will be used to strengthen power transmission.
The Manager of the National Electricity Company (ENEE), Roberto Martínez Lozano, referred to projects where such as the expansion of the Amarateca substation, the expansion of the Zamorano substation and improvement in the departments of Olancho , Francisco Morazan and El Paraiso.
"Other projects include the expansion of substation Las Flores in the department of Lempira and the construction of the transmission line from that plant to the town of Erandique," states the article in Digital Process.
The financial institution confirmed the release of the funds for 2011 to support projects in the power sector, transportation sector and budget support, among others.
This was announced by the representative of the organization in the country, Mirna Liévano, adding: "Nicaragua has already met all the requirements of transparency for accessing new loans from the IDB."
The IFC will provide $ 50 million and mobilize an additional $ 140 million to support the construction of a new geothermal power plant.
This plant is the largest project in Nicaragua in over 25 years in this sector. This initiative will foster the generation of renewable energy, expand electrification and help reduce the country's dependence on imported fuels.
The country will receive a grant from the EU for $ 9.8 million and loans from international bodies for electrification projects.
Mendel Goldstein, Head of Delegation of the European Commission (EC) for Central America and Panama, announced a $ 9.8 million donation of as part of the Easy Investment in Latin America program.
Infolatam reports, "This (donation) will cause a series of loans (to Nicaragua) from the European Investment Bank, World Bank, Inter-American Development Bank, Central American Bank for Economic Integration, Nordic Fund and other development banks, for a total of about 380 million dollars."