Wednesday, May 11, 2016

Latin America: Big Credit Line for Development of Geothermal Energy from German Bank

Germany to back CAF’s financing in geothermal projects and urban transportation for Latin America with €350 million (CAF)

The German Ministry for Economic Cooperation and Development (BMZ) and Development Bank of Latin America (CAF) signed an agreement by which they shall promote the development of energy projects in Colombia, Ecuador, Peru, Bolivia, Chile and Mexico.

By means of the agreement signed today in Caracas with the German Ministry of Economic Cooperation and Development through its Embassy in Venezuela for a total of €350 million, the German government has granted its approval for KfW (German development bank) to negotiate with CAF regarding two new concessionary credit lines during 2017.

The first credit line of €250 million (c. $286 million) shall be allocated to lowering financing that CAF grants to geothermal projects in the region, whether for supporting excavations for measuring the potential of energy generation, or for the very construction of the geothermal plant. This credit line constitutes part of a program lead by KfW and CAF, in which other agencies also participate and which arose in 2013 in order to identify the potential of geothermal energy in Latin America. The countries with the greatest potential in South America are Colombia, Ecuador, Peru, Bolivia and Chile.

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