The Central American Bank for Economic Integration (BCIE) granted a partial credit guarantee to a Honduran bank to help finance a small hydroelectric project in that country that is expected to cut Honduras' annual greenhouse gas emissions by 10,703 tons of CO2.
13 April 2012: The Central American Bank for Economic Integration (BCIE) has granted a partial credit guarantee to Banco Atlántida S.A. to help finance a small hydroelectric project in Honduras.
The partial guarantee, worth US$1 million, will help finance the Zingüizapa Hydroelectric Project in Honduras’ Francisco Morazán Department. The 2.9 megawatt project is expected to contribute to an annual cut in greenhouse gas emissions equivalent to 10,703 tons of carbon dioxide.
Financing for the Honduran hydroelectric project is part of the Partial Credit Guarantee Program of the Accelerating Renewable Energy Investment in Central America and Panama Project (ARECA). ARECA was created by the Global Environment Facility (GEF), UN Development Programme (UNDP) and BCIE to support financing of renewable energy projects under 10 megawatts (MW) by reducing financial barriers and increasing capacities of the financial and energy sectors in Central America. The Partial Credit Guarantee Program, managed by BCIE, is ARECA’s chief instrument.
Projects eligible for ARECA partial guarantees include those that generate energy through hydro, wind, biomass, geothermal and solar sources and which help reduce greenhouse gas emissions. [BCIE Press Release (Spanish)]