IIC Finances over 30 MW of Hydroelectric Power Generation in Guatemala
New run-of-the-river plants will prevent greenhouse gas emissions equivalent to those generated by 25,000 cars annually
Washington, D.C., September 25, 2013 — The Inter-American Investment Corporation (IIC) has approved financing in the amount of up to US$9 million for Generadora San Mateo S.A. (GSM) and up to US$6 million for Generadora San Andrés S.A. (GSA), which will be used to build two run-of-the-river hydroelectric plants with installed capacity of 20 MW and 10.65 MW, respectively, in the department of Huehuetenango, Guatemala.
Powered by the Negro, Pojom, Primavera, Varsovia, and Palmira rivers, the plants will generate nearly 170,000 MWh of renewable energy annually and prevent greenhouse gas emissions equivalent to those generated by 25,000 cars per year.
“GSM and GSA are pleased that the IIC has placed its trust in the projects. Partnering with the IIC will ensure the successful construction and operation of the projects,” observed Rodrigo Rodas, CFO of the two companies. “Through these projects, GSM and GSA are contributing to Guatemala’s development and prosperity and the greening of the country’s energy grid.”
“With this funding, the IIC is furthering the development of Guatemala’s energy infrastructure and helping to mitigate climate change, since these projects will reduce the greenhouse gas emissions associated with other electricity-generation processes,” noted Aniceto Huertas-Corcelles, IIC investment officer in charge of the operation. “These projects will also promote the development and use of a sustainable energy source and create jobs for the region.”
GSM and GSA are Guatemalan ventures established in 2012 to design, build, and operate the two hydroelectric plants in the vicinity of Ixquisis, a small town in the department of Huehuetenango, some 3 km south of the border with Mexico and 400 km from Guatemala City.
Preliminary construction work began this year, and construction is expected to be completed in 2015. The projects will sell energy and firm capacity to Guatemala’s wholesale electricity market.
About the IIC
The IIC, a member of the Inter-American Development Bank (IDB) Group, promotes private-sector development in Latin America and the Caribbean with a focus on small and medium-sized enterprises (SMEs). We help companies streamline management processes and provide them with financing in the form of equity investments, loans, and guarantees. In 2012, the IIC approved 73 operations totaling US$378 million. Throughout our history, we have approved nearly 800 direct loans to SMEs and financial intermediaries, for a total of US$4.8 billion. An additional US$2.8 billion has been mobilized through cofinancing and syndication agreements. For more information on IIC activities, visit www.iic.org.
Contact: Aniceto Huertas-Corcelles
Telephone: +1 (202) 623-2036 in Washington, D.C.