IDB lends USD 65m to Nicaragua to promote renewables

The Inter-American Development Bank (IDB) said on Wednesday it has approved a USD-65-million (EUR 58m) loan to assist Nicaragua in its attempt to adopt renewables.

IDB wants to help the Central American country consolidate a sustainable energy matrix by promoting renewable energy generation, greater private investment and energy efficiency, it said in a statement.

The funding will foster adjustments in the national regulations needed to maintain proper integration of the country with the regional electricity market and to make sure that the regional transmission line maintains its transmission capacity at regional level, IDB added.

Earlier this month, Nicaragua's parliament approved an extension of current fiscal incentives for investments in renewable energy until January 1, 2018. The extension is valid for companies which already have investments in the segment.

(USD 1.0 = EUR 0.893)

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