Scatec Solar and Norfund have signed a share purchase agreement to acquire the 53 MW Los Prados solar project in Honduras. The project have secured a 20-year Power Purchase Agreement (PPA) with Empresa nacional de Energía Eléctrica (ENEE), the government-owned utility.
"With this new project, we are further strengthening our position in the Honduran and Latin American solar market. It is great that we can build on the 60 MW Agua Fria project to execute another 53 MW in the country." said Raymond Carlsen, CEO of Scatec Solar.
Located in the southern Choluteca region close to the Pacific coast, the Los Prados solar power plant is expected to provide about 110,000 MWh annually to the grid, generating revenues of about USD 15 million per year. Scatec Solar will build, own and operate the power plant, while the equity will be owned 70% by Scatec Solar and 30% by Norfund.
Total capital expenditure is estimated to 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 (CABEI) 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.