Finnfund backs 100-MW solar endeavour in El Salvador

Finnish development finance company Finnfund on Friday said it has provided a senior loan of USD 15 million (EUR 12.5m) for the construction of 10 solar power plants in El Salvador with a combined capacity of 100 MW.

The USD-160-million solar project is being developed by Bosforo Ltda de CV, a partnership between a local subsidiary of AES Corp (NYSE:AES) and Guatemala-based Corporacion Multi-Inversiones (CMI). The other senor lenders are the Overseas Private Investment Corporation (OPIC), the Central American Bank for Economic Integration (CABEI) and the Netherlands Development Finance Company (FMO).

The solar power plants will be located in poor rural areas and are expected to be fully operational in 2019, Finnfund said.

At the moment, the company has made an agreement in three municipalities, Conchagua, El Carmen and Pasaquina, situated in the eastern part of the country.

(USD 1 = EUR 0.835)

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