CABEI: More than 56 thousand people in Nicaragua will benefit from the Expansion of the Electricity Transmission System
The approved loan for US$40.1 million will guarantee an efficient and reliable energy supply and contribute to the modernization of the National Load Dispatch Center.
Tegucigalpa, March 23, 2021.- Promoting the expansion of rural electrification, creating the conditions to meet future energy demand, and improving the electric transmission system's reliability in the municipality of Bluefields and surrounding areas is the main objective of Nicaragua's Electric Transmission System Expansion Program, approved by the Central American Bank for Economic Integration (CABEI) for the Republic of Nicaragua for US$40.1 million.
In this regard, CABEI Executive President, Dr. Dante Mossi, stated that "the program comprises two important projects that will benefit 10,842 user families and 2,545 new users, for a total of 56,902 inhabitants, as well as guarantee a more efficient, regular and reliable energy supply in the municipality of Bluefields and surrounding areas.
Mossi mentioned that the initiative will also enable the installation of 68.15 kilometers of transmission lines, a new substation, an expanded substation, the modernization of the National Load Dispatch Center (CNDC), an increase in the Energy Supply of 71,766.0 Megawatt hours (MWh) and will generate 683 temporary direct jobs and 7 permanent direct jobs during its execution.
In this regard, the projects contemplated by the CABEI-financed program are as follows:
- Construction of the Bluefields Substation in 138 kilovolts (Kv), La Esperanza - Bluefields Transmission Line in 138 kilovolt (Kv) and Expansion of La Esperanza Substation.
- Expansion of the Operational Capacity of the National Load Dispatch Center (CNDC). The latter plans to modernize the infrastructure of the CNDC and guarantee quality and reliable services for a better use of the available energy sources, as well as the reduction of losses in the system, and encourage more investment in renewable energy generation that contributes to the reduction of the price of energy and the reduction of greenhouse gas emissions.
The program is framed within CABEI's Country Strategy for the Republic of Nicaragua (2018-2022) and the 2020-2024 Institutional Strategy, in the Human Development and Social Inclusion strategic areas, in order to support efforts to reduce extreme poverty and inequality.
The initiative will also be executed by Empresa Nacional de Transmisión Eléctrica (ENATREL). 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.