The loan will be complemented by a syndicated loan of about $450m along with a $294m co-financing from third-party institutions for a period of 20 years.
The facility, which is expected to be the largest renewable energy project in Central America, is being sponsored by the Instituto Costarricense de Electricidad.
Using the waters of Reventazón River, the plant will generate an average of 1,407 gigawatt-hour (GWh) of electricity a year. Once operational in August 2016, it will form 10% of Costa Rica’s total installed electricity generation capacity.
The hydroelectric project will feature a130m high dam, a 6.9 square kilometer reservoir, and a 4.2km diversion between the dam and the powerhouse.
The current IDB loan will be utilized for design, construction, operation and maintenance of the plant and its associated facilities such as transmission lines, substations and access roads.
IDB’s Structured and Corporate Finance Department head for infrastructure financing for private sector projects Jean-Marc Aboussouan said,"This project will not only help Costa Rica address its growing demand for electricity but also contribute to the country’s goal of reducing its carbon emissions.”
