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European Investment Bank loans $70M for development in Costa Rica

Playa Potrero Guanacaste, Costa Rica (source: flickr/ mdverde, creative commons)
Francisco Rojas Francisco Rojas 29 Nov 2013

The European Investment Bank (EIB) paid Costa Rica $70 million for a 25 year loan for the development of geothermal power plant Pailas II, which will generate 55 megawatts. The previous week there was another line of credit signed that will add $560 million for the development of other geothermal projects in the country.

The Costa Rican Electricity Institute (ICE) project manager said in a statement that they were given credit for a term of 25 years with an interest rate of 4.03% per annum and variable.

The loan was signed by the CFO of ICE, Jesus Orozco, and EIB representative, Susan Antz and the Costa Rican Finance Minister Edgar Ayales, representing the state as guarantor.

Last week, ICE and the Japan International Cooperation Agency (JICA) signed another agreement which gives the institute a line of credit for $560 million for the development of geothermal projects Pailas II, Borinquen I and Borinquen II.

These projects, which together will generate 165 megawatts, are located in the foothills of the Rincon de la Vieja volcano in the northwestern province of Guanacaste, about 300 kilometers west of San Jose.

At present, the installed power generation capacity of Costa Rica is about 2,700 MW (megawatts), about 90% from renewable sources, mostly hydropower. (EFE)

 

Source: The Costa Rica News Website