The Central American Bank for Economic Integration (CABEI) has granted a US$669,000 partial credit guarantee to Financiera de Occidente S.A. (FIDOSA) to hedge financing for development of small hydropower generation in Guatemala.
CABEI made the award through the Accelerating Renewable Energy in Central America (ARECA) program to stimulate financial organizations of the region to finance sustainable energy projects such as small hydropower, wind energy, and cogeneration with biomass fuel.
The investment anticipates estimated annual generation of 2,751.3 MWh and also involves the company Comercializadora de Energia para el Desarrollo S.A. as developer and marketer of electricity from interconnected renewable energy projects. The financing facilitated by the ARECA partial credit guarantee allows consolidation of Guatemalan power sector promoters to finance implementation of clean energy projects with banks and foster a greater share of renewable energy in the regional power grid.
Honduras-based CABEI and the European Investment Bank last year announced a new joint program to invest more than US$500 million on renewable energy projects including hydropower in Honduras, Nicaragua, El Salvador, Guatemala, Costa Rica and Panama.