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March - April 2000


Contracts signed for power link

CENTRAL AMERICA



Honduran and Salvadoran officials signed a series of contracts January in Tegucigalpa that will help pave the way for an eventual electrical interconnection among the six Central American countries.

The contracts will launch construction on a 230-kilovolt transmission line that will connect the Pavana substation in Honduras and the 15 de Septiembre substation in El Salvador. Totaling 148 km, the project will cost $21.4 million and is scheduled to be completed in 18 months.

The new line is part of an ambitious IDB-financed plan to interconnect the electricity grids of all six countries in the isthmus.

The aim of the interconnection is to enable countries to sell power to each other when they have a temporary surplus, and buy it in times of shortage. The result will be increased energy security as well as savings in operating and expansion costs for a regional market of 35 million people.

The interconnection is already in operation in Central America’s so-called southern bloc, which is made up of Panama, Costa Rica, Nicaragua and Honduras. But there is still no link with the northern countries of El Salvador and Guatemala.



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