10 May 2010 - An inauguration ceremony marking the start of construction of Jaguar Energy Guatemala LLC’s new 300 MW solid fuel fired power generation facility, near Puerto Quetzal, Guatemala took place today.
The ground-breaking ceremony was attended by Alvaro Colom, president of Guatemala, along with cabinet ministers and representatives of AEI, Jaguar Energy Guatemala’s parent company.
The project’s total investment is expected to amount to more than $700m with commercial operations of the power plant scheduled for 2013.
"One of our government’s priorities has been to implement and execute a plan to diversify the country's energy matrix, promoting installation of more efficient power plants, according to the energy needs of the country,” said Colom.
“Jaguar Energy is the result of a joint effort with the private sector to improve the availability and reliability of electricity service in Guatemala, creating the conditions to obtain energy at better prices.”
The Jaguar Energy power plant is being built by China Machine New Energy Corporation.
It is the result of an international public bidding process with long-term power purchase agreements held by the local distribution companies DEORSA and DEOCSA under the supervision of the Minister of Energy and Mines and the National Electricity Commission.
The power plant will be equipped with proven technology that allows coal and other solid fuels to be used to generate reliable and cost efficient electricity within strict international standards on environmental, health and safety guidelines including compliance with the Equator Principles and International Finance Corporation's Performance Standards and Environmental, Health and Safety Guidelines.
Jaguar Energy recently closed long-term financing that includes a $350m construction and term loan to be provided by a syndicate of regional and international banks lead by Banca de Inversion Bancolombia Corporacion Financiera SA and the Central American Bank for Economic Integration.
The remaining funds for the project will come from AEI equity and from vendor financing provided by the EPC contractor.