The Central American Bank for Economic Integration (CABEI) has awarded a $40.1 million towards Nicaragua’s transmission system expansion.

The project forms part of the country’s drive to increase rural electrification with more than 56,000 people expected to benefit. The project will help the country to meet growing energy demand in the future.

According to the latest data held by Sustainable Energy for All, in 2018 rural electrification in Nicaragua stood at 71%. The latest data from the country’s Ministry of Mines and Energy puts the electrification rate nationally at 98.5%.

The work will focus primarily on the municipality of Bluefields and its surrounds on Nicaragua’s south Caribbean coast.

Initiatives will include the installation of 68km of transmission lines, construction of the new Bluefields substation and expansion of the La Esperanza substation.

In addition , the National Load Dispatch Centre in the capital, Managua will be modernised with the aim to improve the quality and reliability of supply, reduce losses and support the development of renewable energy generation.

These should result in an increase in the energy supply to 71,766MWh, a statement from CABEI says.

“The programme includes important projects which will benefit 10,842 user families and 2,545 new users, for a total of 56,902 inhabitants, as well as guaranteeing a more efficient, regular and reliable energy supply in the municipality of Bluefields and surrounding areas ,” commented Dante Mossi, Executive President of CABEI.

The initiative will be executed by Nicaragua’s state-owned electric power transmission company Enatrel.

CABEI’s support, with a 15-year term, forms part of its support for human development and efforts to reduce poverty and inequality.

Enatrel has almost 3,000km of transmission lines and 100 substations across its network.