Honduran company Consorcio de Inversiones (Cisa) will start operations of the third and final stage of its 13.5MW La Esperanza run-of-the river hydro project in December, a source close to the project told BNamericas.
The 0.5MW first stage and the 1MW second stage of the project started operations in June 2003 and May 2004 respectively. The third stage will add an additional 12MW to the total installed capacity.
Emissions reductions for the project will be in the range of 37,000 tonnes a year, displacing diesel generation in the country's national grid, the source said.
Honduras' state power company Enee will buy power generated from the project under a 15-year power purchase agreement.
The Central Bank for Economic Integration (Cabei), private Honduran bank BGA, US-based NGO E+Co and Finnish development finance company Finnfund have all contributed to the project's financing.
The project lies on the Intibucá river some 4km from the city of La Esperanza.