bnamericas.com

Venezuela’s state-owned development bank BANDES plans to finance a US$93mn electrification project in Cuba’s capital Havana, BANDES said in a statement.

Funds will come from BANDES recently created US$70mn international cooperation fund (FACI), which will provide US$20mn to the project, and the OPEC fund.

The bank is planning a similar project in the Dominican Republic, a BANDES spokesperson told BNamericas.

Central American and Caribbean countries have had difficulty meeting their electricity demand recently with the high cost of fuel imports for thermoelectric generation.

FACI offers loans with amortization up to 35 years and low interest rates to countries whose socioeconomic condition qualifies them for special financing conditions, the statement said.

BANDES uses the Human Development Index to determine which countries can have access to this financing.

One of the main objectives of such electrification projects is to help Venezuelan power companies export goods and services, the statement said.

The projects will involve thermoelectric generation and a refurbishing of transmission and distribution infrastructure in Cuba and the Dominican Republic, the spokesperson said.

Neither project is related to Venezuela’s Petrocaribe scheme, under which Venezuela will provide advice on generation projects to 14 Caribbean countries, the spokesperson added.

By Carlos Camacho