Japan International Cooperation Agency (JICA) and the government of Bolivia have signed a JPY61.5 billion (US$552 million) loan agreement for the construction of the geothermal power plant in Bolivia.
The Laguna Colorada Geothermal Power Plant Construction Project will be situated in Sol de Mañana, in the Department of Potosí, in southwest Bolivia.
Expected to be completed in November 2023, the new plant will deliver 100 MW of power, meeting the growing power demands of the country, and mitigating the impact of climate change.
The facility will be the first of its kind in Bolivia and is seen as a necessary means of power generation in the region, due to the inefficiency of thermal power plants situated at high altitude.
The importance of the plant’s development to Bolivia is significant, as it is expected to benefit the development of resources in the region, such as zinc, lead and silver. The current power supply to firms operating in Potosi is prone to disruption, coming as it does via long-distance transmission lines.
JICA’s official development assistance (ODA) loan to the Bolivian government extends to a 40-year period, at an annual interest rate of 0.3%, and includes a grace period of 10 years.
According to a JICA release, there will soon be a tender announcement for an initial procurement package for international competitive bidding on the project’s construction.