Approval for Meso-American power interconnection

(Caracas, December 19, 2008).- Funds for US$16.7 million were approved for partial financing of the Electricity Interconnection System of Central American Countries (SIEPAC). The objective of the program, which will be executed by Empresa Propietaria de la Red (EPR), is the physical integration of the power systems of the markets of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama, as well as facilitating their interconnection with Mexico and Colombia.

"This investment program is part of the Meso-American Project whose general objective is to contribute to the process of integration and development of the Meso-American region through conceptualization, financing and execution of programs, projects and activities of regional interest which have a high impact on the quality of life of the people, and which lead to expanded and improved coverage of the electricity service and create markets in the sector," CAF President & CEO Enrique García said. The Project favors reactivation of the political and technical agreements between the six countries needed to implement the Program in question, he added.

The total cost of the program is US$405 million. The infrastructure project includes construction of approximately 1,796 kilometers of 230-kv lines and connections to transformer substations in each country from Panama to Guatemala with the aim of integrating and reinforcing the Central American electricity transmission network.

SIEPAC and the interconnections with Mexico and Colombia will achieve benefits in the areas of integration of six electricity systems, creating a single energy markets; integration of the communication systems of Central America, Mexico and Colombia and submarine cables; and reduction of greenhouse gas emissions achieving approximately US$20 million in emission reduction certificates