IDB Invest loans USD 5m for 6.4-MW PV project in Honduras

IDB Invest, the private sector arm of the Inter-American Development Bank (IDB), has granted a USD-5-million (EUR 4.5m) loan for the implementation of an up-to-6.4-MW rooftop solar system in Honduras.

The agreement was struck with local firm Inmobiliaria Hondurena del Valle SA (INHDELVA), a company belonging to the Kattan Group.

This photovoltaic (PV) array is expected to meet 25% of the energy needs of INHDELVA's industrial park. The PV facility is estimated to offset approximately 94,000 tonnes of carbon dioxide (CO2) emissions over the next 25 years, the bank stated in its press release.

IDB Invest will also offer its advisory services, including support in the evaluation of technical and economic offers. Honduras' Self-Supply Renewable Energy Guarantee Programme, financed with concession funds from Climate Investment Funds (CIF), provides a first loss guarantee.

Last week, IDB Invest signed a deal with the Chilean unit of France’s Engie SA (EPA:ENGI) -- Engie Energia Chile -- to speed up decarbonisation in the country by offering lower financial costs for renewable energy projects to companies that own coal-fired power plants.

(USD 1 = EUR 0.899)

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