Honduras wind gets $82m guarantee

An agency of the World Bank Group has provided an $82.4m investment guarantee for the expansion of the Cerro de Hula project in Honduras, in another boost to the country's wind sector.

The Multilateral Investment Guarantee Agency (MIGA) will back investors against risks to the 24MW extension project, which will take Honduras’biggest wind farm to 126MW.

Cerro de Hula, owned by Globeleq Mesoamérica Energy, is adding 12 Gamesa 2MW machines to its array 20km south of Tegucigalpa.

New and existing equity investments in the project are covered by the MIGA guarantee against risks including of expropriation, breach of contract, war and civil disturbance.

Mikael Karlsson, CEO of Globeleq, said: “MIGA’s insurance gives us added comfort in our decision to expand our wind-power investment in a country that needs more power to support economic growth and development

“We have worked with MIGA in the past and find its insurance to be an effective risk mitigant for our investments in emerging markets.”

The Export-Import Bank of the US (Ex-Im) in March 2013 approved a $28.6m loan for the extension project.

The guarantee is the second boost within a few days for Honduras' wind sector.

Yesterday it emerged that its 50MW San Marcos wind project had secured $127m in finance from international lenders.