Central America agrees to link power grids

Dec 30, 1996 01:00 AM

The Interamerican Development Bank (IDB) will provide $ 450 million in financing to build an inter-connected power grid in Central America. The project aims to link electricity systems via the laying of more than 600 miles (1,000 kilometres) of power lines. The project would lower energy costs throughout the region. The presidents of El Salvador, Nicaragua, Honduras, Costa Rica and Guatemala signed a framework treaty Dec. 29 that also established a free, competitive electricity market in which the countries would sell each other power. Officials said private investors were also invited to take part in the project.

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