Guaranteed Norwegian renewable-project in Honduras

GIEK has issued a guarantee to Export Credit Norway for loans of up to USD 62 million in connection with the Norwegian company Scatec Solar to build solar power plant Agua Fria in Honduras of 60 megawatts (MW).

- The commitment our renewable energy projects are important for Norwegian exports. It contributes to economic growth both at home and abroad, says the Minister of Trade and Industry, Monica Mæland (H).

The project is part of a larger initiative, where the authorities in Honduras will establish several hundred MW in new renewable power. The plant will make Honduras' electricity production less dependent on imported fossil fuels.

Important for GIEKs renewable energy efforts
This is the first solar project in Central America GIEK in which participates and finances. GIEK has previously issued guarantees in connection with Scatec Solar’s power plants in the Czech Republic and South Africa.

- This is an important and exciting project in GIEK's renewable energy portfolio. We are proud to assist the company and to contribute to financing a large renewable projects, says Odd Solheim who is First Vice President in the Renewable Energy Section in GIEK.

Part of a larger initiative for Honduras
Today, the burning of fossil fuels more than half of the electricity produced in Honduras. The Central American nation has set a target that renewable energy should account for 60 percent of consumption by 2020.

The project is implemented under a support scheme for renewable energy in Honduras. Agua Fria is already under construction and will probably produce power as early as Summer of this year.

-We are happy for the support GIEK and Export Credit Norway has given our project in Honduras. GIEK is an important partner for us and secures that Norway contributes to the construction of important renewable power supply in developing countries, says CEO Raymond Carlsen in Scatec Solar.

Scatec Solar – Solar power plant Agua Fria (60 MW)

Scatec Solar ASA is constructing the solar power plant Agua Fria of 60 MW under an EPC (engineering, procurement and construction) contract. Buyer is Producción de Energía Solar y Demás Renovables, S.A. de C.V. (Proderssa), a project company, in Honduras. Proderssa is owned by Scatec Solar, Norfund, and the local partner PEMSA. The project will be completed based on a public funding for renewable energy in the country and a 20 years contract with the national power company, guaranteed for by the state of Honduras, has been signed.