Under the deal signed between IFC and its partner, a beverage producer, the 25MW plant will be built in the north east of the country. IFC, a member of the World Bank Group, plans to cover up to 20% of the project's development costs through the IFC InfraVentures fund.
El Salto YY will be the country's first hydro power project funded privately in more than 30 years, said IFC. Nicaragua is suffering severe power shortages which restricts economic growth while causing higher electricity costs, it added.
The project is the first to be funded in Latin America by IFC InfraVentures. The US$100M fund was established to support private investment in infrastructure projects by early help in the development cycle to overcome major constraints, such as lack of money and experienced professionals.
