The Japanese Bank for International Cooperation (JBIC) has signed a loan agreement with the Instituto Costarricense de Electricidad (ICE) to support the construction of the Pirris hydropower project. The $135 million loan, the fourth in support of a project in Costa Rica, brings the total Japanese commitment to around $358 million.

The 128 MW power project is being built on the Pirris river, 70 km south of the capital, San Jose. Costa Rica is rich in hydropower resources which account for roughly 75 per cent of ICE’s total supply.

Electricity demand in the country has been increasing steadily and annual demand growth is expected to continue at 5.7 per cent until 2020. The government has developed a National Energy Plan which includes the construction of 29 new power plants by 2020. The Pirris scheme is one of the high priority projects highlighted in the plan.