Cerro de Hula Wind Farm

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In November 2010, Energia Eolica de Honduras S.A. (EEHSA), a subsidiary of Globeleq Mesoamerica Energy, in turn a partnership of Globeleq [United Kingdom, 70%] and the Costa-Rican company Mesoamerica Energy (30%), closed financing on the 102MW Cerro de Hula Wind Farm in Honduras located in the Departamento de Francisco Morazan. Cerro de Hula was to us 51 2MW Gamesa turbines (built in the US), and sell power to the state-owned Empresa Nacional de Energia Electrica under a 20-year power purchase agreement. The project had a total cost of over US $250 million. In November 2010, debt financing was aranged through a US $159 million loan from US Ex-Im Bank with a 17-year tenor and a US $50 million Cabei loan with a 15-year tenor. Gamesa and Iberdrola were to build the plant, with completion set for 2012. The sponsors were in the process of registering the project under the clean development mechanism. Commercial operacions commenced in January 2012. In November 2013, the sponsors reached financial closure for the expansion of the power plant. An additional 126-MW unit (Cerro de Hula II) was set to be constructed at a cost of US$ 68.8 million. Financing comprised a US$ 29.6 million 18-year credit facility and US$19.7m credit facility provided by Central American Bank for Economic Integration, Export-Import Bank of the United States and Citi. In addition, in December 2013, MIGA issued a guarantee of US$ 82.4 million supporting the project. The coverage was established for a period of up to 20 years against the risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract.