CABEI supports improved sustainability of Nicaraguan electricity services
CABEI funds will promote the population’s productivity and wellbeing.
Managua, January 27, 2017. - The Central American Bank for Economic Integration (CABEI) and the Government of Nicaragua signed a US$163.5 million loan to finance the "Program to Improve the Sustainability of the Nicaraguan Electricity Sector," which seeks to reduce electricity losses, improve the infrastructure of the distribution network and streamline the sustainability of the Nicaraguan electricity sector. The improvement in the quality and sustainability of the electricity service will have a direct impact on the productivity of companies and on the welfare of the population.
The program involves the rehabilitation and/or construction of 3,000 km of medium and low voltage electricity distribution lines, which will allow the standardization of 66,782 supply lines through more efficient and sustainable networks and the implementation of modern meters. The program will directly benefit approximately 140,000 clients, which translates into an estimated 730,000 inhabitants. Distribution losses are expected to decline from the current 20.36% to an estimated 18.75%. The program is expected to produce annual savings amounting to US$5.2 million.
CABEI Director for Nicaragua, Dr. Silvio E. Conrado, stated that, "From CABEI's standpoint, the assessment carried out of Nicaragua’s Electricity Sector has been extremely positive, which is a direct result of the Nicaraguan government’s commitment to the sector’s development."
Attendees at the event included the Executive President of the National Electric Transmission Company, Mr. Salvador Mansell; Nicaraguan Minister of Finance and Public Credit, Mr. Ivan Acosta; and CABEI Country Manager for Nicaragua, Mrs. Edda Magaly Meléndez.