IDB issues loan for renewables in Honduras

The  Inter-American Development Bank (IDB) has issues a US$40 million loan to the Honduran government for investment into further development and integration of renewables into the country’s energy mix, particularly solar PV. The Honduran power sector initiated a reform in 2014 with the aim of strengthening the institutional capacity and sectoral regulatory framework, and improving financial sustainability and operational efficiency.

Funds from the loan will underpin the creation of clean energy incentives that the government has identified as key towards boosting its renewable sector; including the continuation of tariffs and subsidies for the power sector and benefit the wider Central American region as well.. The terms of the IDB loan include a 5.5 year grace period and a LIBOR-based interest rate. Honduras has been a leader of solar PV development, proven when it reached 389 MW of new installed capacity this past November.

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