IADB finances refit of Honduras hydroelectric dam
The Inter-American Development Bank (IADB) has approved an $18 million loan to help Honduras refit the Francisco Morazán hydroelectric dam and boost the adaptability and integration of renewable energies to the country’s power system.
The IADB loan consists of a $1.1 million concessional tranche for a 40-year repayment term and a period of grace also of 40 years; a $500,000 credit from the bank’s ordinary capital; and $16.4 million in concessional financing from the Clean Technology Trust Fund, with a ten-year period of grace.
The operation, for a total $36.8 million, will also have $18.8 million in local counterpart funding. The executing agency will be the Empresa Nacional de Energía Eléctrica public utility.
Honduras is seeking to boost the the Francisco Morazán Hydroelectric Plant's reliability and operational efficiency in order to meet the system’s needs and make up for the fluctuations of the renewable energy variables in a cost-effective and efficient way. The plant currently has an installed capacity of 300MW.
