CHER Humuya HPP

active

Compania Hondurena de Energia Renovable S.A. de C.V. was created to build, operate and transfer a 39.5 MW run-of-river HPP to be located on the Humuya or Comayagua River, Honduras. The project company was backed by the finances of local Honduran business man Adolfo Larach Foster, the owner of Electricidad de Cortés S.A., the first successful IPP in Honduras. The Project was to sell electricity to industrial clients as well as the state-owned utility ENEE under long-term power purchase agreements (“PPA”). The total investment required for the project was estimated as USD 126 million. The IFC mobilized USD 98 million in financing for the project, providing 30 million in loans from its own account and another USD 68 million from other sources, including a USD 23 million loan from OeEB, Austria’s development bank. The project applied for credits through the CDM mechanism in 2011, with commissioning expected for 2013. Commercial operations commenced in June 2014.