(SeeNews) – Aug 20, 2014 - The Central American Bank for Economic Integration (CABEI) approved a partial loan guarantee of USD 669,000 (EUR 503,300) to Financiera de Occidente SA (Fidosa) to back the development of a small hydropower project in Guatemala.
It is estimated that the financing will promote an annual output of 2,751 MWh.
The loan is extended within the scope of the Accelerating Renewable Energy Investment in Central America and Panama (Areca) project, Prensa Libre.com said yesterday. This programme promotes development of small renewable energy projects in Central America with generation capacities of less than 10 MW. Areca is funded by the Fund for Global Environment (FMAM), administered by the United Nations Program for Development (UNDP) and executed by CABEI.
According to Hector Rodriguez, international project coordinator of the Areca, the use of renewable resources for power generation will allow the region to gradually replace the use of fossil fuels and thus contribute to reducing the greenhouse gases emissions.
(USD 1.0 = EUR 0.752)