Project detail - DESARROLLOS ENERGETICOS S.A. (DESA)

DESARROLLOS ENERGETICOS S.A. (DESA)

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Who is our client

Desarollos Energeticos S.A. (DESA) is a special purpose company incorporated in Honduras for the development of the Agua Zarca hydropower project. The project involves a 21.3 MW run-of-the river power plant. Ownership is completely in the hands of Honduran parties.

Funding objective

Upon completion of the hydropower plant and related facilities, this project is expected to generate nearly 100 GWh of green energy per year, while reducing and replacing non-renewable energy sources in Honduras.

Why we fund this project

The project has a high development impact as it will provide renewable energy capacity to a country heavily dependent on fossil fuel-based energy. Gross electricity generation of the national grid in Honduras is currently around 6500 GWh, of which 58% is generated through powerplants fueled by non-renewable energy sources (mostly petrol) and 42% is generated through hydro power plants. FMO is additional to this project because it is providing long-term financing alongside other lenders, which matches the long-term nature of such investments. In addition to the positive environmental and developmental impacts, this project is expected to generate over 240 jobs during construction and over 50 during operations. For more information see the FAQ

More investments

Date Total FMO financing
3/10/15 EUR 0.03 MLN
Website client
http://www.hidroelectricaaguazarca.hn/index.php
Region
Latin America & The Caribbean
Country
Honduras
Sector
Energy
Signing date
2/27/14
Total FMO financing
USD 15.00 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B+