San Martin Small Hydro Project - IHC S.A.

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The San Martin hydroelectric project is a 6MW, greenfield, run-of-river hydro being developed by Interamerican Hydroelectric Corporation (IHC, S.A.). IHC is also the developer, owner, and operator of the 13MW HidroPantasma project in Jinotega which entered operations in early-2013 and which was funded by BCIE.

San Martin is located on the Bijao River which is a tributary of the Rio Tuma.

By supporting one of the only few private hydro player in Nicaragua and mobilizing funds from third parties, BIO’s additionality is clear.

The major development impact of this project is the contribution to clean and sustainable energy generation in Nicaragua. The project will add generation capacity to the system in a remote area and contribute to network reliability and sustainability.  Energy generated will substitute import of fossil fuels, helping the country’s trade balance and external dependency. Pricing of electricity generated is competitive compared with other sources. In addition there is a benefit in the form of employment generated, as well during construction and thereafter as sponsor only uses local staff.  Located in a remote area, the project’s access roads are of great benefit to the local farming communities also.IFC PS are/will be implemented.

  • Investment amount (€):

    USD 7.59 M

    Energy - Hydropower

  • Contract signature :

    2017

  • Development impacts :

    • 1 — Developing Nicaragua’s untapped hydro power potential
    • 2 — Reduction of utilization of thermal energy, for which all oil needs to be imported
    • 3 — Stabilizing electricity supply and enabling grid extension in the impoverished area where the project is located