Scatec Solar and Norfund have signed an agreement to acquire the 53-megawatt Los Prados solar project in Honduras.
The project has secured a 20-year power-purchase agreement with Empresa nacional de Energaa Electrica, the government-owned utility. Located in the southern Choluteca region close to the Pacific coast, the solar power plant is expected to provide about 110,000 MWh annually to the grid, generating revenues of about US$ 15 million per year.
Scatec Solar ASA will build, own and operate the power plant. It will own a 70% stake in theproject, with the rest held by Norfund. The project will cost US$ 100 million and will be funded by 75% non-recourse project finance debt. Project financing is expected to be provided by the Central American Bank of Economic Integration and Export Credit Norway with guarantee from the Norwegian Export Credit Guarantee Institute.
Financial close is expected in early 2016. Certain construction activities will start immediately while grid connection of the plant is expected in the third quarter 2016.
