IIC Improves Electric Power Supply in Rural Nicaragua
Project promotes private-sector development and reduces environmental impact
Washington, D.C., May 15, 2012 — The Inter-American Investment Corporation (IIC) approved a loan of up to US$1.5 million to Puerto Cabezas Power, S.A. to improve electric power supply in Puerto Cabezas, a municipality on Nicaragua's Caribbean coast.
The loan will finance the procurement of new machinery for a power plant, boosting plant capacity from 5.5 to 7 MW. The new generators will reduce the plant's environmental impact by cutting greenhouse gas emissions and fossil fuel consumption.
“The IIC financing is extraordinarily important for a small company like ours, because it has enabled us to maintain and upgrade both infrastructure and services,” noted Arturo José Chamorro Zamora, president of Puerto Cabezas Power. “It is essential for developing the local economy, allowing us to generate more power for productive uses, reduce poverty, and meet the population's electricity needs.”
Aniceto Huertas-Corcelles, IIC investment officer in charge of the operation, added, “This operation supports the Nicaraguan economy and helps meet the growing energy demand in the region. A stable energy supply not only benefits the local population but will have a positive impact on private-sector development.”
Puerto Cabezas is part of an indigenous region of Nicaragua that is still not connected to the national electrical grid. The State retains the services of private companies to guarantee electricity supply to the region. The Puerto Cabezas Power plant began operations in 2001.
About the IIC
The IIC is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. The IIC’s mission is to promote the economic development of its regional member countries by encouraging the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. It does so by providing financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. In 2011, the IIC reached US$1.48 billion in assets and approved 71 operations channeling US$464.7 million to SMEs in the region. For more information on the IIC’s activities, please visit www.iic.org.
Contact: Aniceto Huertas-Corcelles
Telephone: + 1 (202) 623-2036 in Washington, D.C.