Xacbal Hydroelectric Plant

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In 2006, Hidro Xacbal SA began constructing the Xacbal Hydroelectric Plant, a 94 MW merchant hydroelectric plant next to the Xalbal River in municipality of Chajul, department of Quiche in the northern region of Guatemala. Included in the project was a transmission line that was to connect to SIEPAC, the transmission system for Central American and Mexico that was slated for completion in 2008. The electricity from Xacbal would would be freely sold to the main electricity grid of Guatemala. Hidro Xacbal SA was formed as a special purpose vehicle for the project and was controlled by Grupo Terra (100%, Honduras).Government authorization for the project was obtained through direct negotiation. The project had an estimated cost of US $226.8 million and was to be financed with a debt to equity ratio of 3:1. In March 2007, a team of banks led by Royal Bank of Trinidad & Tobago (RBTT) arranged a US $167.4 million syndication. The other syndicators included FMO with US $30 million, G&T Continental Bank with US $15 million, the Central American Bank for Economic Integration (BCIE) with US $90 million and Banco Agromericantil. The loan had a term of 15 years which was considered very favorable for Central America at the time. Although the project was conceivable eligible for carbon credits, they were not an important part of its financing. The Xacbal Hydroelectric Plant became operational in August 2010.