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Project Brief

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
Empresa Distribuidora de Electricidad del Norte, S.A. (DISNORTE) and Empresa Distribuidora de Electricidad del Sur, S.A. (DISSUR)
Project ID
Fiscal year
Not Active
Guarantee holder
Union Fenosa Internacional S.A.
Investor country
Host country
Environmental category
Gross exposure
 $81.1 million
Project type

MIGA has provided Union Fenosa Internacional S.A. (UFI) of Spain with a guarantee for $81.2 million to cover a $90.2 million equity investment in Empresa Distribuidora de Electricidad del Norte, S. A. (DISNORTE) and Empresa Distribuidora de Electricidad del Sur, S.A. (DISSUR) of Nicaragua. The coverage is for ten years and is against the risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract, including the unfair calling of a performance bond.

Over the past several years, the Nicaraguan government has focused on instituting structural reforms, including privatizing electricity generating and distribution facilities. Following successful completion of the first phase of privatization, UFI was awarded the electricity distribution concession for the western part of the country (divided into north and south), where some four million people reside. The project is expected to result in significant savings due to reduced losses in the distribution system, currently estimated at 30 percent. UFI expects to retain the core employees of DISNORTE and DISSUR, and has promoted the establishment of two new companies, which will provide support services to the project. The project should expand and improve services, allow under-served rural communities new access to electricity and contribute an estimated $50 million in taxes over the next seven years. The project is participating in a rural electrification program, which also receives financial support from the Swiss government. Additionally, the enterprise is providing scholarships for ten low-income students per year to attend Managua National University's engineering program. Meanwhile, the general economy is expected to reap benefits through improved reliability and quality, as a result of improved management and technology and equipment upgrades.

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