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Government of Bolivia approves loan for Laguna Colorada project

Laguna Colorada, Bolivia (source: flickr/ rewbs.soal, creative commons)
Francisco Rojas Francisco Rojas 26 Jun 2014

The government of Bolivia has approved the USD $ 30 million loan given by JICA to finance the construction of the Laguna Colorada geothermal plant. The bill has still to go through the Plurinational Legislative Assembly for consideration and final approval.

Just two months ago Japan extended a loan of U.S. $ 30 million to Bolivia for the proposed construction of the Laguna Colorada geothermal plant would generate in a first phase 50 MW in 2018 that has now been green-lit by the government.

The Government approved on Wednesday by a Supreme Decree, an underwriting of the loan agreement with the International Cooperation Agency of Japan (JICA), for 2.495 billion yen, equivalent to about $ 24.5 million, for the financing of the construction of the Laguna Colorada geothermal plant (phase I of the first stage).

The contract will be signed by the Minister of Development Planning, Viviana Caro, on behalf of the Bolivian state.

According to Supreme Decree, the contract shall be sent for subscription to the Plurinational Legislative Assembly for consideration and approval, following the provisions of the State Constitution.

Moreover, the bill also authorizes the Ministry of Economy to sign the respective subsidiary agreement with the Ministry of Hydrocarbons, as head of the sector, and the National Electricity Company (Ende), in its capacity as executing agency.

The local partner for the construction of the Laguna Colorada geothermal plant will be assumed by Ende.

The Ministry of Economy, through the Treasury’s Office, will assume the debt repayment.
Source: ABI Website via Piensa en Geotermia