Second SIEPAC Circuit Investment Program

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Project Number: 
Expected Consideration Date by the Board: 
Date Posted: 
Empresa Propietaria de la Red S.A
Financing Requested: 
Approximately US$225 million
Environmental and Social Category: 
Scope Objective: 

The project consists of expanding the electricity transmission capacity of the Central American Electrical Interconnection System [Sistema de Interconexión Eléctrica de los Países de América Central] (SIEPAC) through the installation of additional lines (second circuit), expansion of some substations, and reinforcement of some national interconnection systems.   The SIEPAC is a high voltage line interconnecting the electrical systems of Panama, Costa Rica, Nicaragua, Honduras, El Salvador and Guatemala, allowing them to exchange electricity and enabling more efficient dispatch from the countries’ generation systems.

The Borrower has estimated the total cost of these investments at US$370 million.  IDB Invest will participate in the financing of these investments through a loan of up to US$225 million with a term of up to 25 years. Of this amount, US$150 million would be funded by the IDB Group and the remainder with funds administrated by IDB Invest.  The main objective of the financing will be to support the Borrower in making these investments and allowing repayment over a very long period, reducing the impact on the final cost appearing on end users’ electricity bills.

Environmental Review: 

In accordance with the IDB Invest Environmental and Social Sustainability Policy, the project has been classified as category “B,” because it will produce moderate-scale effects that can be avoided or managed by following known performance standards, guidelines and construction and management criteria for projects of this kind. The principal environmental, social and labor effects related to the project include: impact on the biological environment and biodiversity, resource efficiency and pollution prevention, labor and working conditions, community health and safety. Given the nature of the financing (installation of the second circuit on pre-existing infrastructure and construction of substations), no significant social and environmental risks and/or impacts are anticipated in the second phase of the project.

The Project will finance the installation of the second circuit on the existing towers in addition to supporting investments in national reinforcements (to be defined). These actions, which will also have impacts of moderate effects, will be executed in accordance with the same environmental and social protocol used by EPR.

Flickr date taken: 
Friday, April 13, 2018
Contact Information: 

For queries and comments regarding the project and the client, contact:

Name: Ernesto Alfaro Rosales
Position: Environmental Coordinator – Empresa Propietaria de la Red (EPR)
Telephone: + 506 2290-9100 ext. 6133

Environmental and Social Action Plan: