PANAMA CITY, Panama 12/8/11 (PennWell) -- A unit of Spanish developer Grupo Cuerva Espana has received US$21 million in loans to construct the 8.6-MW San Lorenzo hydroelectric project on Panama's Fonseca River.
Cuerva subsidiary Hidroelectrica San Lorenzo S.A. signed a loan agreement December 1 for the financing, of which US$10.5 million is coming from the Inter-American Investment Corp., a unit of the Inter-American Development Bank.
Cuerva Chairman Ignacio Cuerva Valdivia said other financing is coming from Banco Internacional de Costa Rica S.A. and Compania Espanola de Financiacion del Desarrollo.
San Lorenzo is a run-of-river project in Chiriqui Province that includes a concrete dike with five gates located along the Fonseca, a short canal from the river, and a powerhouse containing two 4.35-MW Kaplan turbine-generators. It is expected to generate 40 GWh annually, delivered to Panama's grid by a 12-kilometer transmission line.
Spanish firm Balino S.A. de Espana is to supply and install equipment, while Saret de Costa Rica is handling construction.