The Central American Bank for Economic Integration Bank (Cabei) has approved two loans for a total of US$50.2mn to fund rural power projects in Guatemala and Honduras
In Guatemala , Cabei will lend US$40.1mn to state power company INDE to complement its rural power programme (PER).
The funding is a 12-year loan with a three-year grace period, and will finance the construction of 463km of 69kV, 138kV, and 230kV transmission lines, and the construction and expansion of substation transformer capacity.
The works will provide power to 281,000 new users in eight of the country’s departments.
Total investment in the PER is US$333.6mn, of which US$150.3mn is earmarked for transmission works and US$183.3mn for distribution.
The Inter-American Development Bank (IADB) is contributing US$22.4mn, and Inde is putting up US$87.8mn.
PER aims to build a total 1,214km of transmission lines and increase the grid’s transformation capacity to 1,508MVA, providing power to 90% of the population by 2004.
In Honduras , Cabei approved a US$10.1mn loan for a project that state power company ENEE will carry out to benefit some 39,000 people in 11 departments.
Works include the construction of 769km of sub-transmission lines, and the installation of street lighting.
Cabei’s 15-year loan has a three-year grace period, and resources come from the special fund for the social transformation of Central America (Fets). The financing included a US$1.36mn grant from the European Union (EU) and a US$750,000 loan from the Nordic Investment Bank (NIB).
Honduras ‘ government will provide US$1.12mn counterpart funding for the US$11.2mn total cost of the programme.
Cabei has approved US$38.3mn financing to Honduras for power projects this year.