Costa Rica legislators approve $500m loan for Borinquen geothermal project
Legislators in Costa Rica approve an agreement with the Inter-American Development on a $500 million loan for the development of the Borinquen geothermal project by ICE in Costa Rica.
Late last week, the Legislative Assembly of Costa Rica approved a piece of legislation authorizing an agreement of a line of credit for $ 500 million to the Costa Rican Electricity Institute (ICE) from the Inter-American Development Bank (IDB) ).
The line of credit provides ICE with money to finance geothermal energy programs. It also includes resources to improve the transmission and distribution network, which will positively impact various rural areas of the country.
The instrument, known as the CCLIP (Conditional Credit Line for Investment Projects), will be aimed at the development, modernization and expansion of infrastructure linked to renewable electricity generation projects, including the Borinquen Geothermal Field, as well as transmission networks and national distribution.
The negotiation of this CCLIP between the ICE and the IDB began in 2013. The Government of Costa Rica is the guarantor of the investment, through the Ministry of Finance. The agreement between the three actors was signed in February 2016, and had to go through legislative approval to become the law of Costa Rica.
“This is a sample of the excellent reputation that Costa Rica has before the international financial organizations.The funds will be vital for the decarbonisation of our economy.I congratulate the deputies for ratifying the credit line and I thank the IDB for the confidence shown through of the years with the Institute, “said Irene Cañas, executive president of ICE.
The CCLIP granted by the IDB -under very favorable financial conditions- will be executed through up to three individual loan contracts, according to the investment needs determined by the ICE for the country in its expansion plans for future years.