Credit for hydroelectric project Reventazón is complicated

Complications to complete the overall financing for the plant Reventazon, ICE was forced to look for short credits to continue with the works.

Teofilo de la Torre, chief executive of the Costa Rican Institute of Electricity (ICE), acknowledged that it was not easy to complete the loan package for the work, estimated at $ 1,400 million.

This hydro of 305 megawatts (MW) of installed capacity is built in Siquirres.

The structuring of the financing is provided by the Inter-American Development Bank (IDB), in addition, provide a portion of the required capital.

Initially, the Institute had announced that the loan would be completed this year, but now anticipated to be until January or February 2013. Approvals IDB and the World Bank would be given at the end of next month and in the next three months, would placement in private banking.

Meanwhile, ICE finances the work with own money that complements with alternative credit, some temporary, or bridge, which will be refunded when the loan firm overall.

For example, next month will receive a credit for $ 250 million from the IDB to invest in energy. Of that amount, $ 100 million will go to the project Reventazón.

“The package (loan) what we want and what we need because it is the best in term financial conditions and interest rates, but it has not been easy to complete the package,” said De la Torre to consult it on if it is very expensive to take short loans.

The temporary end of July destroyed several works of the project, which will increase, according to ICE, about $ 10.5 million in cost and delay the start of operations in six months.

This means, will not be ready in the summer of 2016 as was planned.

For Mario Alvarado, executive director of the Costa Rican Association of Power Producers (Acope), the picture is not as satisfactory as seen by the ICE.

In his opinion, the works become more expensive over the estimate for insurance premiums and redesign that will have to be done in some works, like the dam site and powerhouse, to protect against another rising river.