CABEI allocates US$143 million for the National Sustainable Electrification and Renewable Energy in Nicaragua
The initiative will enable a total of 114,050 families in rural areas and urban settlements to have safe and efficient energy services.
Tegucigalpa, November 24, 2020.- The Central American Bank for Economic Integration (CABEI) approved today a loan for an amount of US$143.00 million to the Republic of Nicaragua to continue financing the National Program for Sustainable Electrification and Renewable Energy (PNESER).
Through these resources, the multilateral will contribute to improving the quality of life of families, the development of new productive activities, the generation of employment, and the reduction of poverty in the country. Also, it will help Nicaragua, for the first time in history, to achieve an expected electrification rate of 99.9 percent by 2025, which would reach, within the countries of the Central American region, a level comparable to that of Costa Rica; and, on the other hand, it will contribute to reducing non-technical losses in the distribution networks by 1.45 percent, supporting the strengthening and sustainability of the electricity sector.
In this sense, the implementation of components 1. "Rural Electrification by Network Extension" and 2. "Standardization of Service in Settlements" is foreseen, which guarantees that through the expansion of electric coverage utilizing the connection to the electric power distribution network, 35,000 homes in 1,278 rural communities will benefit nationwide; and the standardization of electric power supply to 79,050 homes in 402 urban settlements.
For his part, CABEI's Executive President, Dr. Dante Mossi, stated that: "the energy sector is a priority for CABEI in its commitment to promote competitiveness and raise the quality of life of the inhabitants of the Central American region. In the case of Nicaragua, we continue to contribute to economic and social growth with the financing of this program and other initiatives in both the public and private sectors".
The program will be executed by the National Electric Transmission Company (ENATREL) in 17 departments or regions of the country: Boaco, Carazo, Chinandega, Chontales, Estelí, Granada, Jinotega, León, Managua, Madriz, Masaya, Matagalpa, Nueva Segovia, Río San Juan, Rivas, the Autonomous Region of the Northern Caribbean Coast (RACCN) and the Autonomous Region of the Southern Caribbean Coast (RACCS).
The financing will have a 15-year term with a 3-year grace period and an indicative interest rate of Libor 6 months plus 225 basis points.