CABEI supports important energy generation projects in El Salvador


• More than US$542.8 million has been approved for the financing of important projects that promote the production and use of renewable energies, as well as energy efficiency.


San Salvador, February 16th, 2023 - In theframework of International Energy Day, the Central American Bank for Economic Integration (CABEI) highlights some of the initiatives supported in El Salvador to promote the production of this important resource from renewable sources, contribute to the reduction of carbon emissions and promote resilience to climate change through direct financing and intermediated financing.

As a sign of its commitment, CABEI has provided a significant contribution to the development of relevant projects aimed at guaranteeing Salvadorans affordable, safe and sustainable electricity. An example of this effort is the Bósforo Solar Photovoltaic Project, which arose from the alliance between AES El Salvador and Guatemala's Corporación Multi Inversiones (CMI), and is benefiting 215,000 users and reducing 157,000 tons of CO₂ emissions per year.

CABEI was a vital ally in the development of Bósforo, since it structured financing for US$110.81 million, of which it contributed US$21.3 million and, as a structuring bank and catalyst of resources, it also secured the participation of different financial institutions such as FinnFund, Bio and CIFI, which allowed the country to develop ten solar energy generation plants that, together, have a total installed capacity of 100 MW, equivalent to 142 MWp.

"Promoting the use of renewable and accessible energy for the population is a priority for CABEI and this project is undoubtedly significant for its social and environmental impact. In line with CABEI's Institutional Strategy, through the cross-cutting axis of Environmental Sustainability, and our Environmental and Social Policy, we are working to ensure that the operations financed by the Bank and the operational activities for its own functioning are environmentally and socially sustainable," said CABEI Executive President Dante Mossi.

CABEI is also having a positive impact on the environment and on the change in El Salvador's energy matrix with the 5 de Noviembre Hydroelectric Power Plant Expansion Project, an initiative for which it granted financing to the Comisión Ejecutiva Hidroeléctrica del Río Lempa (CEL) for US$57.5 million to increase its installed capacity by 80 MW. Thus, the plant has achieved an annual generation capacity of 130.34 GWh and is contributing to mitigate the negative effects of climate change through the annual reduction of 89,200 tons of CO₂, benefiting 127,000 electricity users. This project in particular has exemplary actions, for example in the removal and post-use of water hyacinth, which is then degraded and used as organic fertilizer.

The same effort is being made to support other very emblematic plans for the country, such as the development of the El Chaparral Hydroelectric Power Plant Project, which consists of the construction of a hydroelectric power plant with an installed capacity of 66 MW and an additional small unit of 1.42 MW, for which CABEI approved financing of up to US$464 million in order to diversify the country's energy matrix and generate a very important economic, social and environmental impact for El Salvador.

The institution also provides intermediated financing to support different sectors and companies in the country through the Green MSMEs II Program, a tripartite initiative executed by CABEI with the financial support of the European Union and the German government, through KfW, providing more than US$28 million in financing for the start-up of two solar photovoltaic energy plants, energy efficiency projects and the replacement of bus fleets.

Thus, on Energy Day, CABEI highlights its commitment to support initiatives that promote the fulfillment of the 2030 Agenda, including SDG 7, recognizing that energy is fundamental to address the region's challenges and opportunities, whether to promote employment, improve security, combat climate change, ensure food production or increase income.