The joint programme with the Central American Bank for Economic Integration will enable more than US$500 million of investment in projects in six central American countries, Honduras, Nicaragua, El Salvador, Guatemala, Costa Rica and Panama.
“Considerable investment is needed to harness the potential of renewable energy and more efficient energy use to reduce carbon emissions and provide energy essential for economic growth. The European Investment Bank is committed to supporting long-term investment in sustainable energy around the world and enabling low-carbon energy investment in Central America,” said Magdalena Álvarez Arza, European Investment Bank vice president, responsible for lending in Latin America.
The investment will help reduce regional dependence on fossil fuel imports and diminish carbon emissions from energy production. The new lending scheme will allow support for public and private sector investment in both renewable energy and energy efficiency projects.
The new programme follows a similar initiative launched in 2011 between the European Investment Bank and the Central American Bank for Economic Integration. This scheme is supporting hydropower investment in Costa Rica.
Since the start of lending in Latin America the European Investment Bank has provided more than €5.7 billion for long-term investment projects, including €1.9 billion in the energy sector.