The CABEI loan agreement from last November has now received funding which will benefit more than 114 thousand Nicaraguan families under the Electricity Program in Nicaragua known as PNESER.
The Central American Bank for Economic Integration (CABEI) and the Republic of Nicaragua has now signed the contract for financing the US $ 143 million loan that was agreed to last November at a regional meeting in Honduras.
At that meeting in Tegucigalpa, Honduras, CABEI approved the loan of US $143 million to the Republic of Nicaragua for the continuation of the Nicaragua Electricity Program for Sustainable Electrification and Renewable Energy (Programa Nacional de Electrificación Sostenible y Energías Renovables or PNESER by its acronym in Spanish)
This project, dating back to 2011 has the main focus of raising Nicaragua’s electricity coverage ratio with a goal of providing electricity to 3,620 communities throughout Nicaragua as well as upgrading the service to 648 more. The ultimate goal is for Nicaragua to achieve an electrification rate of 99.9 percent by the year 2025 which would be one of the highest electrification rates in Central America. The energy sector is a priority for CABEI in Nicaragua as they continue to support economic and social growth by funding PNESER as well as other initiatives, both public and private.
The program is being effected by the National Electric Transmission Company (ENATREL) and work will take place in 17 departments (regions) , including; Boaco, Carazo, Chinandega, Chontales, Estelí, Granada, Jinotega, León, Managua, Madriz, Masaya, Matagalpa, Nueva Segovia, Río San Juan, Rivas, the Autonomous Region of the Northern Caribbean Coast and the Autonomous Region of the Southern Caribbean Coast (RACCS).
The electricity program in Nicaragua also aims to reduce non-technical losses (non-payment of electricity) in the country’s distribution networks by 1.45 percent and to support and strengthen the sustainability of the electricity sector.
The financing will have a 15-year term with a 3-year grace period and an indicative interest rate of 6 months LIBOR rate (London Interbank Offered Rate currently 0.20%), plus 225 basis points (2.25%).
