Projects
Summary of proposed guarantee
Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.
- Project name
- Eolo Wind Farm
- Project ID
- 10994
- Fiscal year
- 2013
- Status
- Active
- Guarantee holder
-
Globeleq Mesoamérica Energy (Wind) Limited
- Investor country
-
Bermuda
- Host country
-
Nicaragua
- Environmental category
- B
- Sector
-
Power
- Date SPG disclosed
- June 22, 2012
- Project Board date
- July 26, 2012
- Gross exposure
- $25.2 million
- Project type
- Non-SIP
- Strategic priority area
-
Complex Project
IDA
This summary covers a shareholder loan and equity investment by Globeleq Mesoamérica Energy (Wind) Limited of Bermuda in Eolo Wind Farm in Nicaragua. The investor has applied for MIGA guarantees up to $25.2 million for a period of up to 20 years against the risks of transfer restriction, expropriation, and war and civil disturbance.
The Eolo project involves the construction of a 44 megawatt wind farm in Rivas Province on the shores of Lake Nicaragua. Eolo consists of twenty-two Gamesa G90 2 megawatt wind turbine generators, as well as the facilities and equipment required to connect the generators to a high voltage substation. It is estimated that Eolo will be able to generate approximately 169.6 gigawatt hours of electricity per year, without requiring any fossil fuel supply. The wind farm is expected to start operations by December 2012 and the electricity will be purchased by local distribution companies Distribuidora de Electricidad del Norte, S.A. (Disnorte) and Distribuidora de Electricidad del Sur, S.A. (Dissur).
Environmental Categorization
The project is a category B under MIGA’s Policy on Social and Environmental Sustainability. Click here to view the Environmental and Social Review Summary.
Development Impact
Nicaragua’s electrification rate is among the lowest in Central America. Additionally, reliance on thermal (oil-fired) generating plants has made the long-term marginal costs the highest in the region. This project aims to provide additional generation capacity that is not only renewable and clean, but also helps reduce the average marginal cost of generation, resulting in an overall reduced cost of electricity to users.
MIGA’s participation in the project is aligned with the agency’s commitment to support investment into countries eligible for concessional lending from the International Development Association and investment in infrastructure.
