$560 Million Loan from Japan for Renewable Energy Development

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This week the Government of Costa Rica signed a loan of $560 million awarded by Japan to develop geothermal energy projects that generate more than 55 megawatts of electricity.

Costa Rican President Laura Chinchilla told a press conference that the loan will be sent next week to the Legislature for ratification as soon as possible.

“We are confident that Members have very clear awareness of the importance of using this funding and we’re talking about an investment in renewable energy,” she said.

This credit has state guarantee by the Government of Costa Rica, is a 40-year term and has a fixed interest rate of 0.60%.

The projects to be financed are Pailas II, I and Borinquen Borinquen II, which are located in the foothills of the Rincon de la Vieja volcano in the northwestern province of Guanacaste and are in charge of the state-owned Instituto Costarricense de Electricidad.

For their part, the Japanese Ambassador to Costa Rica, Mamoru Shinohara, said these projects “match cooperation policies of the Government of Japan, the International Cooperation Agency (JICA).”

“I am very confident that the project will contribute not only to climate change mitigation, but also for stable power output at a lower cost,” Shinohara said.

At present, the installed power generation capacity of Costa Rica is about 2,700 MW (megawatts), about 90% from renewable sources, mostly hydropower.

Costa Rica News Site

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