Green MSME Initiative Launched in Nicaragua

Managua, Nicaragua, October 15, 2013. - .With support from the Nicaraguan Ministry of Energy and Mines, the Central American Bank for Economic Integration (CABEI) introduced the "Green MSME Initiative," which seeks to contribute to climate and environmental protection through micro, small and medium enterprises (MSMEs) by promoting environmental investments, especially in the field of ​​energy efficiency and renewable energy.

This pioneering project in Central America is an initiative established by CABEI with financial support from Germany's KfW Development Bank and the European Union through its Latin American Investment Facility (LAIF). Its objective is to contribute to climate and environmental protection through the actions of MSMEs, promoting environmental investments in the field of energy efficiency and renewable energy.

During her speech, CABEI Country Manager for Nicaragua Ms. Edda Magaly Meléndez emphasized the importance of joint efforts to benefit the country's environment and its MSMEs.

Ms. Meléndez explained how the Initiative supports projects by providing financing channeled through Central American financial institutions at a competitive fixed rate, which is determined by the destination of the resources, for investments in energy efficiency and renewable energy.

The Initiative also has non-reimbursable resources available for energy audits of energy efficiency projects and resources for technical feasibility studies, final designs and environmental impact studies of renewable energy projects.

US$5 million is the maximum amount granted per project for a term of up to 10 years, depending on the type of project. The coverage is on a regional level and is intermediated through financial institutions that maintain a global credit line with the Bank.

To determine eligibility for funding by the Initiative, a number of investment indicators are taken into account. For example, energy efficiency refers to projects that produce savings on the energy bill equal or greater than 15% and renewable energy refers to projects that generate up to 5MW.

The event was attended by CABEI Country Manager for Nicaragua, Edda Magaly Meléndez; the Minister of Energy and Mines, Mr. Emilio Rappaccioli; CONIMIPYME Executive President, Mr. Alonso Muñiz and the Ministry of Energy and Mines Director General of Renewable Energy Resources and Energy Efficiency, Mr. Humberto Reyes;  as well as by entrepreneurs and project developers; representatives of chambers of commerce; associations from the country's different sectors; technology providers; and the country's various financial institutions.