The Multilateral Investment Guarantee Agency (MIGA), an arm of the World Bank, will provide US$56.7 million investment for 80MW of solar power projects being developed by SunEdison in Honduras.
The International Finance Corporation, another member of the World Bank, is also supporting the investment with direct financing of US$85.9 million, including US$65.5 million in senior debt and US$20 million in subordinated debt.
MIGA’s investment guarantees cover equity investments by SunE Solar B.V. a subsidiary of SunEdison. They will support the development, construction, and operation of three PV plants, which will generate energy for the national grid under 20-year power purchase agreements with state utility ENEE.
The three plants, located in the Choluteca region, are already under construction and expected to be connected to the grid in the third quarter of this year.
Under the agreements, SunEdison will operate and manage the plants.
Carlos Barrera, SunEdison vice president and managing director for Latin America, said: “This investment will help Honduras reduce its dependency on imported fuels and contribute to the country’s objective to diversify its energy mix with more clean energy. Our partnership with the World Bank Group is critical as we enter this new market.”
SunEdison recently announced it will acquire 70% of Globeleq Mesoamerica Energy (GME) which has 243MW of operational wind and 82MW of operational solar assets in Costa Rica, Honduras and Nicaragua and 326MW of wind projects in development across Central America.