Bolivia will receive US$106 million in loans from the Inter-American Development Bank to finance the construction of the 80-MW Misicuni hydroelectric project.
Construction of the dam on Bolivia’s Misicuni River began in June 2009. In addition to generating electricity for Bolivia’s national grid, the project is expected to boost water supplies for domestic use and irrigation activities in the Cochabamba Valley.
“Through this project, Bolivia is showing that when water is sustainably managed, it can become a strategic resource that generates improved human health, increased food production and greater access to clean, renewable energy,” said IDB President Luis Alberto Moreno.
The IDB loan will be used to build the hydroelectric component of the project, including transmission lines. The project is being financed by the government of Italy, the Prefecture of Cochabamba, Bolivia’s National Treasury, and the Andean Development Corp.
An additional US$5 million in IDB financing will be used to reduce erosion, enhance water management, and protect priority habitats in the areas of the watershed most exposed to such risks. The additional funds also will be used to promote soil and water conservation measures and sustainable, income-generating alternatives to subsistence farming in the communities displaced by the dam construction.