Nicaragua: Steaming Out of Poverty
The construction of a geothermal power plant in San Jacinto means a new era in the use of local, renewable sources of energy for the local population.
Nicaragua is one of the poorest countries in Central America. At the same time, the country is "sitting" on top of one of the largest sources of geothermal energy worldwide. These "hot treasures" are sleeping 2000 m deep under the ground: inactive volcanoes, one of the most reliable sources of renewable energy - they could be the escape route from dependence on expensive imported oil. There are good reasons why geothermal energy enjoys the highest priority in the energy policies of the Nicaraguan government.
This suits Oesterreichische Entwicklungsbank and its strategy of investing heavily in renewable energy projects until 2020. That's why OeEB is supporting the expansion of the geothermal plant in San Jacinto together with the International Finance Cooperation (IFC) and seven other development institutions. The goal of the USD 157 million project is to increase the production capacity of the power plant, which has been in operation since 2005, from the current 10 megawatt capacity to 72 megawatts in two phases of construction. Together with its partner organisations, OeEB is financing the second phase of construction of the largest geothermal project in Central America to date with a credit in the amount of USD 15.1 million.
With a capacity of around 72 megawatts, San Jacinto will make a large contribution to clean, renewable energy in Nicaragua.
Project with additional value
San Jacinto will make a large contribution to the share of renewable energy in Nicaragua, significantly reduce dependence on expensive imported oil, and thereby create a sustainable and secure supply of energy, which is essential for economic development. The local project company's promise to create local jobs by choosing the local construction industry as subcontractors, among other things, clinched the deal for OeEB financing.
Furthermore, OeEB is planning a project for improving the supply of drinking water to the local population along with the Inter American Development Bank (IADB).
Further project details
Department Investment Financing