CA CCFL REVENTAZON HYDROPOWER

Allocation under the Central America Climate Change Framework Loan. The project consists of the construction and operation of a 305 MW hydropower plant with associated dam and reservoir, located on the Reventazon river in Costa Rica. It aims at providing for the increasing electricity demand from a renewable source.

The project aims to provide for increasing electricity demand in Costa Rica and the region with renewable energy generation. It is included in the 'Generation Expansion Plan 2008-2021' developed by ICE where a yearly average demand growth of 6% is foreseen, leading to an estimated total increase in hydropower generation of 2080 MW and total new installed generation capacity of 3025 MW. Reventazon HPP will be one of the largest hydropower plant in Costa Rica and is expected to generate 11% of the total electricity supply in 2015.

The hydropower project involves the creation of a reservoir with a water storage capacity greater than 10 million cubic meters. If located in the EU, the project would fall under Annex I of the EIA Directive, and is therefore subject to a mandatory EIA under the Bank's environmental policy. The national legislation also requires a mandatory EIA. The promoter has carried out comprehensive environmental studies involving public consultation. The project will not require resettlement and mitigation and compensation measures have been proposed to offset the effects on flora and fauna. These will be reviewed in detail during the appraisal with a particular focus on social impacts and the impacts on biodiversity.

The promoter is a public utility and should adopt a procurement process for equipment, supplies and services (including civil works), following the Bank's Guide to Procurement for public sector activities, and publish in the OJEU the calls for tender for the main components and services.