Second SIEPAC Circuit Investment Program

inactive

The project consists of expanding the electricity transmission capacity of the Central American Electrical Interconnection System [Sistema de Interconexión Eléctrica de los Países de América Central] (SIEPAC) through the installation of additional lines (second circuit), expansion of some substations, and reinforcement of some national interconnection systems. The SIEPAC is a high voltage line interconnecting the electrical systems of Panama, Costa Rica, Nicaragua, Honduras, El Salvador and Guatemala, allowing them to exchange electricity and enabling more efficient dispatch from the countries’ generation systems.The Borrower has estimated the total cost of these investments at US$370 million. IDB Invest will participate in the financing of these investments through a loan of up to US$225 million with a term of up to 25 years. Of this amount, US$150 million would be funded by the IDB Group and the remainder with funds administrated by IDB Invest. The main objective of the financing will be to support the Borrower in making these investments and allowing repayment over a very long period, reducing the impact on the final cost appearing on end users’ electricity bills.