Geothermal projects in Costa Rica to move forward with $500m loan by IDB signed into law

Carlos Alvarado, President of the Republic of Costa Rica signed a law that grants a $500 million credit line from the Inter-American Development Bank (IDB). The credit line is for sustainable electricity projects, among them investments into the development of geothermal power plants, the promotion of electric transport, smart cities and digital solutions for public services.

With the law and this credit line, “We are taking a first step towards the decarbonization of the economy”, as stated by Carlos Alvarado, the President of Costa Rica.

The Legislative Assembly unanimously approved credit line with the IDB under very favorable conditions for the country.

The President, together with the Minister of Finance, Rocío Aguilar , signed the Law No. 9573, which gives Costa Rica a line of credit for $ 500 million from the Inter-American Development Bank (IDB/ BID) – known as CCLIP – for the development of sustainable electric projects in a ceremony on June 18, 2018.

From the CCLIP, individual loan contracts will be derived to cover the country’s electricity needs. These will be signed in the eight years after the publication of the law, in terms of execution of up to 25 years. The IDB created this credit instrument for clients with outstanding payment records.

The activity, which took place in the Energy Efficiency Laboratory of ICE, in Rincón Grande de Pavas, was attended by Claudia Dobles, First Lady of the Republic; Irene Cañas, executive president of ICE; and Fidel Jaramillo, representative of the Bank for Costa Rica.

Towards decarbonization

Among the projects to be financed include the completion of the Las Pailas II Geothermal Plant, as well as the construction of the Borinquen I and Borinquen II Geothermal Plants. Also, transmission and distribution works at the national level, digitalization of public services and creation and expansion of smart cities.

President Alvarado reiterated that one of the priorities of his government is the decarbonization of the economy, based on the diversification of the energy matrix with alternative sources to oil derivatives.

“Costa Rica must understand with conviction that it has to be at the tip of the development of Latin America. A nation that produces 99% of its electricity with clean sources and that can take that to transport, must be a leader in decarbonization of its economy,” said the president.

Original source: Think Geoenergy
Published on 19 June 2018