Inter-American Development Bank backs Hydroelectric Upgrade in Honduras

The Inter-American Development Bank (IDB) said on Monday it is giving a USD-23-million (EUR 21.75m) loan to support the upgrade of Honduras’ Cañaveral-Rio Lindo hydropower units.

Rio Lindo Honduras Hydro-Electric Power Plant

Río Lindo. Cañaveral

The run-of-river hydropower plant (HPP), located in the Cortes region, was the first such station in Honduras. Today, with a total capacity of 109 MW, it accounts for 9.6% of the national supply. The project will boost the complex’s total capacity by 20.8 MW.

The upgrade, to be overseen by the National Electrical Energy Company (ENEE), represents an investment of around USD 167.2 million. The Japan International Cooperation Agency (JICA) will contribute USD 135.4 million, while local participation is set at USD 8.8 million and the rest comes from IDB.

Overall, the HPP revamp will help increase the security of the country’s electricity supply — it will prolong the operating life of the facility by at least 30 years; ensure supply of at least 10% of Honduras’ electricity demand at a lower cost; and improve the site’s generation efficiency.

The financial support from the IDB and JICA comes under their framework agreement for Co-financing Renewable Energy and Energy Efficiency Projects (CORE).

(USD 1.0 = EUR 0.95)

See Also: Honduras State Owned Electric Power Company “ENEE” Seeks Financing for Hydroelectric Plant


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