IDB to support USD-103m geothermal, grid project in Nicaragua

The Inter-American Development Bank (IDB) said today it will back a USD-103.4-million (EUR 92m) programme for the development of Nicaragua’s geothermal energy potential and the construction of transmission infrastructure.

IDB will lend USD 51.4 million and a further USD 25 million will come from the Korea Infrastructure Development Co-financing Facility in Latin America and the Caribbean, which is managed by IDB. At the same time, the Clean Technology Fund (CTF) and the Scaling Up Renewable Energy in Low Income Countries Program (SREP) will grant USD 17 million, while the remaining USD 10 million are local counterpart funds.

A portion of the funds will be used for site investigation aimed at determining the technical viability of exploiting the geothermal potential of the Cosiguina field in northwestern part of the country. Mechanisms to attract private investment will be developed too.

The construction of transmission infrastructure, in turn, will help enhance energy service delivery, meet current and future demand and conclude Nicaragua’s adjustment to the regional energy transmission system SIEPAC, IDB said.

(USD 1.0 = EUR 0.892)

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