EIB to finance hydropower development in Nicaragua

The European Investment Bank (EIB) is currently studying financing a hydropower development and transmission project in Nicaragua.

The sponsor of the project is state-owned Empresa Nacional de Transmissión Eléctrica.The project consists of two main components:

1. A new medium/large (253 MW) hydro power plant (Tumarin) with a long transmission connection (550 km of 230 kV line, 4 substations) to the grid, in northern Nicaragua;
2. A programme of seven smaller electricity transmission investments (altogether 440 km of 138 kV lines and 7 substations with 105 MVA of transformer capacity), to interconnect isolated networks and small/medium hydro power plants to the grid, in the Nicaraguan eastern Caribbean coastal territories.

The project consists of transmission investments that are necessary to allow access of renewable electricity projects to the main consumption centres of the country, to replace present and future fossil-based generation, and to connect isolated smaller energy grids to the transmission grid of the country. The project therefore contributes to the mandate objectives of climate change mitigation and economic infrastructure development.

The European Investment Bank is analyzing financing €130 million and the total project cost is €1,000 million.

The bank disclosed the transaction on February 23rd, 2015.