- The first phase, initiated in April 2022, has already been completed and includes the installation of dual-fuel combustion turbines. The second phase, currently under development and expected to be completed by February 2025, will add heat recovery steam generators, increasing the total installed capacity to 258 MWh.
- The project is essential to stabilize the country’s electricity system during peak demand periods when other energy sources cannot meet national demand.
- The plant generated 268,400 MWh in 2023, avoiding the emission of approximately 36,000 tons of carbon.
Panama, June 2024 – Corporación Interamericana para el Financiamiento de Infraestructura, S.A. (CIFI), commissioned by EGE Haina S.A., SGN Energía S.A., and Monte Rio Power Corporation LTD, has secured $322.5 million in financing for the construction and operation of the SIBA Energy thermal power plant in the municipality of Boca Chica, Dominican Republic. This project is vital for improving the stability of the country’s electricity system, especially during peak demand periods when other energy sources cannot meet the demand.
CIFI Services, S.A. led and executed a bridge financing that reached $120 million, starting in December 2022 with a contribution from the Closed Investment Fund for the Development of Dominican Infrastructures I, managed by AFI Universal and whose financing manager is CIFI AM, for $72 million. These contributions enabled the construction of the open cycle of the SIBA plant, achieving a net installed capacity of 188 MWh. Additionally, long-term financing of $322.5 million was structured to repay the bridge loans and finance the construction of the combined cycle, increasing capacity to 258.4 MWh for a total investment cost of $432.5 million.
The project, classified as a national priority by the Dominican government, is being developed in two phases. The first phase, initiated in April 2022, included the installation of combustion turbines with dual capacity for natural gas and diesel. This phase was inaugurated on February 23, 2023, and commenced operations on May 30, 2023.
Currently, the second phase is under construction and is expected to be completed by February 2025. This phase will add heat recovery steam generators, increasing the plant’s total capacity by 70 MWh.
The long-term financing includes Stand By and working capital credit lines of $22.5 million from Bladex and the participation of 12 banks, totaling approximately $300 million. Participants include the Closed Investment Fund for the Development of Dominican Infrastructures I ($72 million), Banreservas ($60 million), Banco Múltiple BHD, S.A. ($50 million), BHD International Bank (Panama) S.A. ($10 million), Banco Popular Dominicano, S.A. ($20 million), Popular Bank, Ltd. Inc. ($20 million), Banco Múltiple Promerica de la República Dominicana, S.A. ($15 million), St. Georges Bank & Company Inc. ($10 million), Banistmo, S.A. ($20 million), CIFI LATAM S.A. ($17.45 million), Banco Ficohsa Panama ($5 million), and BPR Bank S.A. ($0.55 million).
The SIBA thermal power plant generated 268,400 MWh in 2023, avoiding the emission of approximately 36,000 tons of carbon into the atmosphere, as gas generation is less polluting than other fossil fuel sources, benefiting more than 160,000 people with access to energy. During the operation of phase I and the construction of phase II, approximately 185 workers, mostly from the area, will be hired.
María Alejandra Vega, Senior ESG Officer at CIFI, commented: “The SIBA project reflects the great work done by multidisciplinary teams of developers to meet high environmental and social standards.”
Antonio Arauz, Investment Director at CIFI, added: “Leading this project has been an honor and a privilege. The collaboration and effort of everyone involved have been crucial in realizing this challenge. Special thanks to EGE Haina, SGN, and Monte Rio Power Corporation, as well as the dedicated SIBA team, for their professionalism and determination throughout the entire process.”
The SIBA project significantly contributes to several Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy), SDG 8 (Decent Work and Economic Growth), SDG 11 (Sustainable Cities and Communities), and SDG 13 (Climate Action).
About Key Collaborators
EGE Haina S.A.: Leading power generation company in the Dominican Republic with more than 20 years of experience and investments exceeding $1.05 billion. It is the main public-private company in the country. Pioneer in the issuance of Green Bonds in 2021 in the Dominican market and Sustainability-Linked Bonds in international markets. www.egehaina.com
Closed Investment Fund for the Development of Dominican Infrastructures I: Structured by CIFI AM and managed by AFI Universal, this fund has committed investments of DOP 14 billion ($250 million) in infrastructure projects in the Dominican Republic.
CIFI Asset Management Ltd.: An investment firm focused on financing mid-market private infrastructure projects in Latin America and the Caribbean. CIFI AM offers institutional investors diversified portfolio management services for direct infrastructure loans in high-growth demographic areas while mitigating environmental, social, and governance risks. www.cifiam.com
CIFI (Corporación Interamericana para el Financiamiento de Infraestructura, S.A.): Private non-bank financial entity with 22 years of experience in the Latin American and Caribbean region, having participated in more than 215 transactions, valued at over $2.3 billion, leading sustainable infrastructure projects.
AFI Universal: A subsidiary of Grupo Universal with more than 50 years of experience, offering diversified investment options through investment funds, promoting economic and social development. www.afiuniversal.com.do
