Release date: 5 August 2010
Promoter – Financial Intermediary
Government of Nicaragua/Ministry of Mines and Energy, through the public company ENATREL (transmission)Location
Description
Transmission systems reinforcements in rural areas. The programme consists of investments that support energy efficiency and renewable energy within GoN programme “Programa National de Electrificacion Sostenible y Energia Renovable” (PNESER) framework. The programme includes investments in renewable generation with grid extensions and refurbishments in unelectrified rural areas of the country, rural electrification, refurbishment of urban grids, pre-investment studies of renewable investments (hydro, wind), energy efficiency (regarding air-conditioning and lighting equipment) and providing security of supply to isolated electricity systems by refurbishments and renewable generation development. The programme components are dispersed throughout the country.
Objectives
The electricity market of Nicaragua is suffering from inadequate generation capacity, ageing and unreliable transmission infrastructure and an insufficient level of cost recovery from customers. Despite a recent increase of up to about 800 MW, Nicaragua still has inadequate generation capacity compared to the growing consumption estimated at 4%/year starting from 2001. About 80% of generated electricity is produced from fossil fuels (oil). The programme addresses the critical components of all these electricity sector problems and is expected to provide for improved energy supply reliability in Nicaragua, which is a pre-requisite for sustainable growth.
Sector(s)
Proposed EIB finance (Approximate amount)
EUR 40 million
Total cost (Approximate amount)
USD 381 million / EUR 310 million
Environmental aspects
Due to their size and technical characteristics several components of the programme, if located within the EU, would fall under Annex II of Directive 97/11/EC and amendments. These programme components will need to be screened for the necessity of EIA by the competent Environmental Authority, under IADB and EIB guidelines.
Procurement
The promoter will be required to publish all contracts to be part-financed by the Bank in the Official Journal of the European Union, and procure them in line with the provisions of the Bank’s Guide to Procurement for public sector operations.
Status
Signed - 31/01/2011
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).