MIGA Backs SunEdison’s Solar Power Projects in Honduras
MIGA Backs SunEdison’s Solar Power Projects in Honduras
Guarantees support of some of the country’s first, large grid-connected solar projects
View the press release in Spanish
Washington, DC, June 17, 2015—The Multilateral Investment Guarantee Agency (MIGA), the political risk insurance and credit enhancement arm of the World Bank Group, announced today that it is supporting the development, construction, and operation of three solar photovoltaic power plants in Honduras that will add more than 80 megawatts of clean, renewable energy to the country’s grid.
The plants are being developed by SunEdison Inc. (NYSE:SUNE), the world's largest renewable energy development company, and will provide energy to the national grid under 20-year power purchase agreements with ENEE, the state-owned electricity generation, transmission, and distribution company. The three plants, located in the Choluteca region, are already under construction and are expected to be interconnected in the third quarter of 2015. SunEdison will also operate and manage the solar plants under long-term agreements.
MIGA’s investment guarantees of $56.7 million cover equity investments by SunE Solar B.V. of the Netherlands, a wholly owned subsidiary of SunEdison. MIGA’s coverage is against the risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract for a period of up to 20 years. MIGA’s coverage transfers to the ultimate owner of the solar projects.
The International Finance Corporation, a member of the World Bank Group, is also supporting the investment with direct financing for $85.9 million, including $65.5 million in senior debt and $20 million in subordinated debt.
“We’re pleased to support a large-scale solar generation investment that will help Honduras reduce greenhouse gas emissions while boosting power supply to improve quality of life and promote private sector development,” says MIGA Executive Vice President and CEO Keiko Honda. “Supporting investments that help mitigate the impact of climate change is a key priority for MIGA.”
“This investment will help Honduras reduce its dependency on imported fuels and contribute to the country’s objective to diversify its energy mix with more clean energy,” says Carlos Barrera, SunEdison vice president and managing director for Latin America. “Our partnership with the World Bank Group is critical as we enter this new market.”
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MULTILATERAL INVESTMENT GUARANTEE AGENCY
A Member of the World Bank Group
1818 H Street, NW, Washington, DC 20433
MIGA Contact:
Mallory Saleson, MIGA
Tel: +1 202 473-0844
E-mail: msaleson@worldbank.org
Rebecca Post, MIGA
Tel: +1 202-473-1964
E-mail: rpost@worldbank.org
Cara Santos Pianesi, MIGA
Tel: +1.202.458.2097
E-mail: csantospianesi@worldbank.org