IFC to finance 70 MW solar project in Honduras

The International Finance Corporation (IFC), the private sector lending arm of the World Bank Group, is considering financing the 70 MW Valle Solar PV project in Honduras.

The project comprises the development, construction and operation of a 70 MWp solar PV power plant. It is expected to produce an average of approximately 122 GWh per annum.

The project has successfully secured a 20-year power purchase agreement (PPA) with state-owned utility, Empresa Nacional de Energía Eléctrica (ENEE). The PPA is part of a wider effort by ENEE and the government of Honduras to diversify the country’s electricity supply and improve the reliability of the power grid.

Cohessa, a wholly-owned subsidiary of Inversiones y Representaciones Electromecánicas (IRESA), is developing the new facility. It will employ equipment from top-class manufacturers and expects to start construction of the project in Q4 of 2014. The project is expected to become operational by the second half of 2015.

The total project investment is estimated to be up to US$120 million. IFC’s proposed investment for its own account would consist of an up to US$30 million A loan. IFC is also expected to mobilize additional funds from other financial institutions to complete the financing.

The project will be located in Nacaome, Southern Honduras on a flat parcel of land across approximately 210 hectares. Interconnection of the project to the grid will be through the interception of an existing 230 kV transmission line and construction of a high voltage substation at the interception point.