Public-Private Sector Partnership to work on Central America Policy Work and Business Partnering

US Hydropower is working with the U.S. Agency for International Development to address market concerns in the Central America region.   In September 2000, US Hydropower signed an MOU with the local trade association to provide technical assistance on helping to resolve market barriers.  U.S. companies have undertaken seven projects in Honduras and Guatemala, all of which are very close to the financing phase but have been encountering barriers.  The Guatemalan government has also asked the association to give it recommendations on how to move projects forward.

US Hydropower will help the newly formed Generators Association to make policy recommendations.  Members will partner with U.S. developers to address the market barriers they are facing in the region.  The private sector will discuss lessons learned in other markets, and conduct meetings with policymakers to educate them on the barriers they are facing. 

US Hydropower has been asked by local private sector in Guatemala to offer its expertise in how a trade association can most efficiently represent its industry.  The private sector is also in need of technical assistance to help identify recommendations to address market barriers and allow projects to move forward in the newly restructured environment. US Hydropower expects financial closings on two projects in Guatemala in the very near future. 

A Guatemalan Renewable Energy Law has been developed over the last few years to encourage much needed renewable energy (mainly hydropower) investment. As hydropower is a capital intensive energy resource, the recently restructured energy sector in Guatemala favors thermal investment. The low life-cycle cost and other development and environmental benefits of hydro are rewarded by this new legislation.  Implementation of the Renewable Energy Law will be a critical step toward leveling the playing field and allowing much needed investment to flow.

With several industry projects working to identify viable financing schemes on near term projects, US Hydropower is working to attract political support from the U.S. government including Capitol Hill, USAID, and the U.S. Ambassador to Guatemala.  US Hydropower is also working through its members and their in-country partners with the Guatemalan government and the Associacion Nacional de Generadores private sector association to expedite implementation of the Renewable Energy Law in Guatemala.  The legislation has already been signed by the Minister of Energy, and is now at the Office of the President.  The bill is expected to be presented to the Guatemalan Congress shortly.