Investment and Financing
Expansion plan requirements include, in addition to generation additions, transmission investments (including 230kV lines that link with the SIEPAC interconnection) and distribution investments, including rural electrification. Investment requirements for the period 2005-2009 were estimated as follows:
| ($US million) | Total | Public | Private | Public/ Private |
|---|---|---|---|---|
| Generation | 298 | 8 | 84 | 206 |
| Transmission | 47 | 47 | ||
| Distribution | 84 | 84 | ||
| Rural electrification | 101 | 83 | 18 | |
| TOTAL | 530 | 138 | 186 | 206 |
Source: World Bank 2006
Public/private partnerships constitute the major source of financing for generation. They include investments in geothermal facilities through La Geo and its strategic investor, which are likely to go ahead; other investments in this category include the Chaparral power plant ($143 million). It is also important to note that these estimates are just for investments required within El Salvador. They do not take into account financing required for the 300 MW of firm generation capacity assumed to be available from regional sources through the SIEPAC line.
Read more about this topic: Electricity Sector In El Salvador
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