Reventazon Boosts Both Power And Construction Growth
BMI View : As the Reventazon hydropower project is gaining momentum - backed by new IDB loan - Costa Rica's power will see a boost of growth. Furthermore, on the back of necessary auxiliary infrastructure builds, the country's construction sector will likewise see a bump in its forecasts.
The Inter-America Development Bank (IDB) has recently approved an additional US$200mn in non-sovereign guaranteed (NSG) 20-year loans to fund Central America's largest renewable energy project - the Reneventazon hydropower project in Costa Rica. NSG instruments are a tool commonly used by development institutions to facilitate private sector investment in creditworthy projects which have a positive impact on development.
|The Reventazon Effect|
|Electricity Generation TWh, % y-o-y|
In a press release, the IDB, which already have provided a US$670mn loan for the power plant, stated that the project will 'not only help Costa Rica address its growing demand for electricity, but also contribute to the country's goal of reducing its carbon emissions'.
In fact, the 305.5MW power plant, being developed by the Instituto Costaricense de Electricidad (ICE), is expected, when completed in 2016, to produce 10% of the country's electricity. By using water from the Reventazon River the plant will generate 1,407GWh of electricity per year.
|A 2016 Bump|
|Construction Industry Value (US$bn), Real Growth (%)|