Costa Rica secures funding of up to $500m for geothermal development

Costa Rica secures funding of up to $500m for geothermal development Las Pailas plant, Costa Rica (source: Ormat)
Alexander Richter 9 Feb 2016

Costa Rica secures loans of up to $500 million for geothermal projects and related infrastructure development that could provide up to 165 MW in geothermal power generation capacity.

Reported from Costa Rica, the country has announced having signed a US $500 million loan agreement with the Inter-American Development Bank (IDB) to finance renewable energy projects and their respective transmission and distribution systems.

Costa Rica’s Ministry of Finance and the state-owned Costa Rican Electricity Institute (ICE) said in a statement that the deal consists of two loan agreements, both with 25-year terms and variable interest rates, currently set at 1.52 percent.

The first loan of US $200 million will be allotted to complete two geothermal projects, known as Pailas II and Borinquen I, both located in Liberia in the northwestern province of Guanacaste. The installations, once completed, are expected to provide 55 megawatts each.

The agreement must still be ratified by Costa Rica’s Legislature.The remaining US $300 million is to be invested in the Borinquen II geothermal project, also in Liberia and which will provide an additional 55 megawatts, in addition to the modernization of the Arenal hydroelectric plant and projects to improve the transmission and distribution networks of the national electric grid.

Source: The Costa Rica Star