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Nicaragua seeks IDB support for work on Cisguina geothermal project

Cosiguina Volcano, NIcaragua (source: Nasa/ Rawpixel via flickr/ vintage_illustration, creative commons)
Alexander Richter 10 Oct 2019

Nicaragua's Ministry of Energy and Mines is seeking funds from IDB to support pre-investment studies for the Cosiguina geothermal project, as well as environmental management of commercial wells.

Nicaragua has sought for technical support from the Inter-American Development Bank (IDB) for a geothermal project, as part of a wider support for transmission infrastructure work, technical assistance etc. The funds sought are to support the country with pre-investment studies for the Cosiguina geothermal project, as well as environmental management of commercial wells. Other geothermal projects, so BN Americas, include Mombacho and Casita-San Cristóbal.

In the document of IDB, it is pointed to the inexperience of the country’s Ministry of Energy and Mines in the execution of this type of projects and added that results of pre-feasibility studies they were not conclusive to advance in the decision making of the next steps to follow.

This weakness has been overcome with the signing of support of specialized geothermal entities of Central America such as LaGeo. and specialized consultants MEM with TC resources to contract the services of specialized firms and consultants to approve the Drilling Plan. This support will be complementary to CT NI-T1232 (of 2017) which was designed for the preparation of the Operation NI-L1094 (of 2016), and with an advance in financial execution of 78% mainly for environmental studies of the geothermal component.

Nicaragua has two geothermal power plants, the Momotombo plant with 77.5 MW installed capacity and the San Jacinto-Tizate geothermal plant of Polaris Energy Nicaragua (PEN) with a capacity of 77 MW.

In a recent statement, Polaris Infrastructure the mother company of PEN, highlighted the need to need funding partners to move its Casita geothermal project in Nicaragua further.

Source: BN Americas and IDB Project information NI-T1272