Tuesday, February 9, 2016

Costa Rica: Funding for 165 MW of Additional Geothermal Energy

Costa Rica signs US $500 million financing agreement for renewable energy (Costa Rica Star)

Loans allocated to complete 55 MW Pailas II, 55 MW Borinquen I geothermal plants and 55 MW expansion of the Borinquen II geothermal project

(Courtesy CIA.gov)
Costa Rica signed a US $500 million agreement with the Inter-American Development Bank (IDB) to finance renewable energy projects and their respective transmission and distribution systems on Friday.

Costa Rica’s Ministry of Finance and the state-owned Costa Rican Electricity Institute (ICE) said in a statement that the deal consists of two loan agreements, both with 25-year terms and variable interest rates, currently set at 1.52 percent.

The first loan of US $200 million will be allotted to complete two geothermal projects, known as Pailas II and Borinquen I, both located in Liberia in the northwestern province of Guanacaste. The installations, once completed, are expected to provide 55 megawatts each.

The remaining US $300 million is to be invested in the Borinquen II geothermal project, also in Liberia and which will provide an additional 55 megawatts, in addition to the modernization of the Arenal hydroelectric plant and projects to improve the transmission and distribution networks of the national electric grid.

The agreement must still be ratified by Costa Rica’s Legislature.