IIC loan to Hidroeléctrica San Lorenzo, S.A. in Panama will help advance renewable energy generation


Washington, D.C. - On September 13, 2011, the Inter-American Investment Corporation (IIC) approved a loan of up to US$10.5 million to Hidroeléctrica San Lorenzo, S.A. (HSL).

The proceeds of the loan will be used to build an 8.6-megawatt run-of-the-river hydroelectric power plant generating approximately 40 gigawatt-hours per year. This entails building a five-gate concrete dam on the Fonseca River in Chiriquí Province, a short diversion of the Fonseca River, and a powerhouse for two Kaplan type turbines.

According to Jorge Ciurlizza, IIC senior investment officer in charge of the project, "With this operation, the IIC will further the development of run-of-the-river mini hydropower plants in Panama. Such plants are a key component of the country’s energy matrix. They spur growth at both the country and the regional level, lowering the cost of electricity and helping to provide a reliable supply of power from a clean, renewable source with minimal environmental impact. Mini hydropower plants also create job opportunities in areas with relatively little economic activity."

About HSL

HSL was set up specifically to build, develop, and operate an 8.6-megawatt run-of-the-river hydroelectric power plant on the Fonseca River, Chiriquí Province, in Panama. The sponsor and principal owner of HSL is Grupo Cuerva, headquartered in Granada, Spain. For more information on HSL, visit www.grupocuerva.com

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 2010, the IIC reached US$1.4 billion in assets and approved 49 operations channeling US$374.8 million to SMEs in the region. For more information on the IIC’s activities, please visit www.iic.org

Contact: Jorge Ciurlizza (in Washington, D.C.)

Telephone: (202) 623-3932

Email: jorgeci@iadb.org