IDB Approves Loan for Nicaraguan Geothermal Plant

Source:

"San Jacinto-Tizate is one of the highest quality geothermal resources."

The Inter-American Development Bank (IDB) has approved a $40 million loan to finance the second-phase expansion of the San Jacinto-Tizate geothermal project, being developed by Polaris Energy Nicaragua.

Once completed, the project will have an installed capacity of 72MW.

San Jacinto-Tizate is considered one of the highest quality geothermal resources under development worldwide, according to the bank.

This will be the second operating geothermal plant in Nicaragua and is expected to stimulate more private-sector investment in electricity generation.

The plant will bring the total contribution from the country's geothermal resources to 15% of its installed capacity. Nicaragua has a target to reach 86% of electricity generation from renewable sources by 2014.

Completion of the second-phase expansion is scheduled for December 2011 at an estimated cost of $177 million, which will be co-financed by a group of multilateral lenders, including the IDB.

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