The Honduras-headquartered Central American Bank for Economic Integration (CABEI) approved a credit line for $150 million to Costa Rica, to improve the state-owned Electricity Institute (ICE).

According to the international bank, the funds will finance the maintenance and renewal of machinery and equipment of the institution's systems, including power distribution lines and internet transmission lines and infrastructure development to enable 5G technology, among many other projects.

This is the first credit line for a decentralized public institution in Costa Rica, with a loan time of five years," said CABEI's Executive President, Dante Mossi.

CABEI has provided loans to the institute to develop other projects such as the Reventazón Hydroelectric Project, the expansion of the Cachí Hydroelectric plant, the Las Pailas Geothermal Project and the Electric Works Program among others.

The institute is responsible for generating, transmitting, distributing and commercializing electric power in Costa Rica. Founded in 1949, ICE has played a crucial role in the development of the country's electrical infrastructure, helping the nation to become one of the most advanced in Latin America in terms of electrification.

ICE operates a variety of power plants, including hydroelectric, thermal, and wind plants. It also operates a high-voltage transmission network that covers almost the entire country, as well as a distribution network that reaches more than 99% of the population.

In addition to its core electricity operations, ICE is also involved in other areas, such as telecommunications, research and development, and environmental conservation. For example, it manages a national fiber-optic network and provides internet and phone services to both residential and commercial customers.

The institute is one of several public organizations that have received loans from CABEI. Recently, the bank approved a $450 million loan to the Costa Rica government, to build a new complex of state-owned buildings, known as a government city, where most of the ministries will be located.

CABEI also offered a $90.2 million loan to finance buildings or repairing of public schools. That one is part of the $700 million loan approved last year. The funds were to finance 2,500 urgencies such as roads, bridges, housing and railroad, among others. They were damaged by several tropical storm emergencies that affected the country in the last quarter of 2022.

 

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