Projects

Renewable Energy: Large Scale Solar PV Plant

The Atacama Desert in Chile has one of the high levels of solar radiation on earth, making it an ideal place to harvest solar energy.

The IDB Group and the Canadian Climate Fund provided $41.4 million in long-term financing to developer Solarpak for Pozo Almonte and Calama, Chile’s first large-scale solar photovoltaic project totaling $82.7 million. In a country where the mining sector consumes 18 percent of Chile’s electricity and accounts for 19 percent of its GDP, the Pozo project is providing a renewable energy alternative to power this key industry.

The three solar plants under the Pozo project boast a combined output capacity of 26.5 MW peak and are projected to reduce CO2 emissions by 56,000 tons per year. The project is expected to have a catalytic effect and contribute toward the diversification of Chile’s energy matrix.

Energy Efficiency: Roadway Lighting

The IDB Group approved $16 million in financing for Optima Energía, a Mexican energy service company (ESCO) to retrofit the street lighting in Ensenada, Baja California with state-of-the-art LED technology.

The project was developed under an innovative financial structure that allows the project to pay for itself through energy savings. It also showcases the benefits of LED street lighting –cost savings, improved public safety, and productivity– to municipalities throughout the region.

The IIC is also adding value by helping Optima Energía to enhance its workforce through a gender certification and internship program. The Project is being co-financed by the Canadian Climate Fund (C2F) and the Climate Investment Funds (CIF).

Innovative Climate and Clean Energy: Self-Supply Solar and Energy Efficiency

The IDB Group approved $9 million in financing for Inversiones Materiales S.RL. (Invema), a Honduran recycling company, to install 1MW of solar PV panels on its rooftop, implement energy efficiency measures, and invest in additional recycling equipment.

Through these investments, Invema is climbing the value chain while demonstrating how companies can use self-supply clean energy to reduce costs and their own carbon footprint.

With IIC support, Invema has become a leader in corporate sustainability and an engine for social impact in Honduras. The Project was identified through technical assistance provided by the IIC in partnership with the Nordic Development Fund (NDF). Co-financing was provided by the Canadian Climate Fund (C2F), the Climate Investment Funds (CIF) and the NDF.

 

Climate Smart Agriculture: Reforestation

By combining native tree reforestation, climate change mitigation and heritage trade promotion on underutilized lands that are owned by Indigenous communities, the IIC developed the climate smart agriculture project in Ejido Verde, Mexico. 

Pinosa and Resinas Sinteticas are family owned pine chemical companies that purchase and process pine resin into gum rosin and rosin based value added products. The companies have been working with local communities to develop a business model to profitably reforest degraded land. 

The IIC will provide $2 million in financing for the two companies to support local ejidos to plant and maintain 1250 hectares of pine trees on ejido land in Michoacán, Mexico.  The pine trees will produce resin that the communities will sell to the borrowers.

The project through the IIC and donor support, local communities will reforest land with native pine species that will produce income when they mature.  The Project will sequester 180,250 tons of carbon dioxide over the life of the Loan..

 

Adaptation: Renovation Facility

In 2015 the IDB Group approved a $100 million Ecom Coffee Renovation Facility. The facility objective is to provide long-term loans to help coffee farmers combat the devastating effects of the coffee rust fungus, which has swept through Central America, crippling production and threatening the livelihoods of millions who depend on the coffee industry.

The project is a partnership between the IIC, Exportadora Atlantic (a Nicaraguan subsidiary of the coffee trader Ecom), Starbucks Corporation, the International Finance Corporation (IFC, a member of the World Bank Group), and the Global Agriculture and Food Security Program (GAFSP).

As a result, the IIC is expected to provide loans amounting to $40 million for projects with Ecom subsidiaries in Costa Rica, Honduras, Mexico, and Peru, as well as Nicaragua. For future operations in Mexico, Peru and Costa Rica under the Facility, funding from the IIC’s capital is expected to be complemented by a risk-sharing guarantee of up to $12.2 million from the Canadian Climate Fund for Private Sector in the Americas (C2F), administered by the IDB.