State power firm agrees to borrow $500 million for generation projects

The state power company said Friday that it had signed an agreement for a $500 million loan from the Interamerican Development Bank.

The loan is in two parts. One is for $200 million and the second is for $300 million.

The money will finance renewable energy projects, transmission lines and distribution networks, said the Instituto Costarricense

de Electricidad. The loan is guaranteed by the Costa Rican government.

The variable interest rate is now 1.52 percent.

The money will provide the resources to complete the  Pailas II and Borinquen I and II geothermal generation projects, said the power company. In addition, the money will go to modernizing the Arenal hydro project, it said.

The loans require legislation to become effective.

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