CABEI improves people's quality of life and the environment by supporting energy projects in Guatemala
Initiatives for rural electrification and wind and water power generation, among others, have been supported by the multilateral.
Guatemala City, February 15th, 2023.- In the framework of World Energy Day, which is celebrated every February 14th, the Central American Bank for Economic Integration (CABEI) joins the efforts of its member countries by supporting projects in this sector so that they can meet Sustainable Development Goal (SDG) 7: guarantee access to affordable, safe, sustainable and modern energy for all.
"It is essential that every home, business, and company has uninterrupted and accessible electricity service to guarantee not only the quality of life of individuals, but also the productivity and competitiveness of countries, as well as the protection of the environment, which is why CABEI is committed to supporting initiatives that maintain this purpose" said CABEI Executive President, Dr. Dante Mossi.
In the specific case of Guatemala, CABEI actively contributes to strengthening and improving energy supply coverage, as well as diversifying the country's energy matrix. CABEI is currently following up on the fourth long-term bidding process for the Energy Generation Expansion Plan in Guatemala, in which the country's two main distributors will tender 235 megawatts (MW) of power, and the Bank will provide financing to the private companies awarded the contracts.
Some of the energy sector initiatives executed by CABEI in Guatemala:
Rural Electrification Program for Transmission Projects of the National Electrifiaction Institute (INDE).
With the construction of approximately 357 km of power transmission lines and 13 substations, we improved the living conditions of the population with fewer economic resources and increased the productivity of rural communities by improving and expanding the coverage of electricity service. 280,639 people benefited from this program, which was financed by CABEI for US$40.1 million.
Xacbal Hydroelectric Project
A hydroelectric plant was built and commissioned in the department of Quiché with an operating capacity of 94.9 MW. An environmental improvement and adaptation program was also developed, including reforestation and watershed improvement programs for the project. During construction, 400 temporary jobs were created, followed by 25 permanent jobs. The project was financed by CABEI for US$90 million.
San Antonio del Sitio Wind Project
This initiative had an impact on the reduction of fossil fuel consumption through the construction and operation of a wind power plant in the municipality of Villa Canales in the department of Guatemala. In addition, 140 temporary jobs were created during construction and 20 permanent jobs were created after start-up. The project was executed with CABEI financing of US$50 million.
Preinvestment Financing for Los Patos Project
CABEI granted financing for the technical and feasibility studies required to determine the viability of a mini-hydroelectric plant located in the department of San Marcos, in the amount of US$198,500.
CABEI also offers intermediated financing for energy generation projects of up to 5 MW, available through banks that have a Credit Line in force with CABEI, through the MIPYMES VERDES program, a tripartite initiative between the European Union (EU), the German bank KfW and CABEI.
Electric energy has become a priority issue for CABEI, and as an institution that strives to provide opportunities for people to transform their lives, it will continue to join efforts with strategic allies to guarantee access to this resource in an efficient and sustainable manner.
