INNOVATIVE PROJECT OPERATES IN HONDURAS FOR THE PRODUCTION OF SUSTAINABLE ENERGY

Rain was pouring down when we reached the Marco Aurelio School located in the community of San Fernando, department of Intibuca.  The purpose of the World Bank mission, to meet with the Water Board and community leaders and assess the contributions of the La Esperanza Hydroelectric Project to San Fernando,

Approximately 600 inhabitants live in the 92 houses located in the surrounding area of the school.  The majority of the neighbors are farmers.  They plant potatoes, corn and beans in plots of land slightly larger than 26 square meters.  Some of the heads of families and single mothers work in the nearby town where they have jobs in carpentry, construction or households.  It is a hard life living on less than one dollar a day in households where they lack all the basic services. 

During the meeting the President of the Water Board and the Vice president of the “Patronato” complain that their salaries are not enough to cover their needs.  However, the subject of the day is not precisely that one but rather the recent development in the community; electricity is finally there after considerable efforts and many activities of a successful public-private partnership that has involved the community, a private business and a public business.  Communities usually expect everything from the government but in San Fernando’s case community leaders have mobilized and received a positive response to their request both from the National Electric Energy Company (ENEE) and the Hydroelectric Project of La Esperanza.  The efforts have been  successful; the majority of houses in the community now have electricity something which has meant  savings for the families there.

The Manager of the La Esperanza Hydroelectric Project, Ron Turner, is an active man who comes from Canada and who has dedicated considerable time and effort to create this hydroelectric plant near La Esperanza.  The hydroelectric is a run of river generator located on the Intibuca River.  The company sells its energy to the National Electricity Company which distributes it to differents part of the country. 

The Project is considerably innovative in Honduras and the world, not only because it generates electricity but also because it is a Project that receives World Bank funds that come from the Carbon Community Development Fund (CCDF).  This is possible due to the fact that for each megawatt it produces, it avoids the emission of carbon dioxide into the earth’s atmosphere, which otherwise would be emitted by thermal plants.

The carbon dioxide emissions have been at the center of the most recent controversies in the world since it has been scientifically demonstrated that carbon emissions are the principal cause of the increase in temperatures in the globe causing the melting of the glaciers and flooding in different areas of the planet.

Approximately 175 countries in the world signed the Kyoto Protocol in which they agreed to carry out efforts to decrease carbon dioxide emissions through the Clean Development Mechanism (MDL).  To that end several mechanisms have been designed to contribute to the sustainability of efforts such as the Hydroelectric Project of La Esperanza recipient of compensation bonds for each watt produced. 

The countries that receive investment projects (Honduras in this case) benefit due to the sustainable development carried out by these projects.  The proponents of MDL projects, aside from the ‘carbon credits’, obtain additional benefits, among them access to new markets and clean technologies.

Simultaneously, the Hydroelectric Project of La Esperanza, took on – with the support of the World Bank Community Development Fund (CDF) – some social commitments with the communities in the area of influence of the project.  .San Fernando was selected as a result of the excellent organization they have.  Also, the Hydroelectric Project of La Esperanza took on – with support from the World Bank Community Development Fund - some social commitments in the project’s area of influence.  Amongst those activities was the reforestation of the community’s water source providing them with the plants and the technical assistance needed to plant a small pine trees forest which the inhabitants Project today. 

The Hydroelectric Project of La Esperanza provided support to the families of San Fernando that could pay for the expenses of the installation of the lighting posts, the street lights and the download of the electricity to their houses.  Only that activity has a high cost of approximately US$ 157 per household.  The vicepresident of the community’s ‘patronato’ states that in total the community spent US$ 42,000 to obtain the electrify the houses. 

However, given the elevated costs of electrical wires for the interior of the houses and the connection costs some families were left out.  Xiaoping Wang, Manager of the Project, discusses with the ‘Patronato’ and the Water Board to explore possible options for the families that have not yet been connected to receive financial support for micro-credits to pay for the electrification expenses.  The discussion concludes that the families could take on a credit for 100 lempiras a month with a bank or a cooperative to cover the expenses.  Some of them are anxious to begin but they need to await the alternative to come to reality.  The people are proud of their efforts and their achievements but they do not wish to leave behind the families that have yet to electrify their homes. 

The families in San Fernando that spent approximately 150 lempiras in candles and batteries to light their evenings and listen to the radio now spend approximately 60 lempiras for the electricity bill. This has meant a significant saving for the majority of the poor families.  In a similar manner as the families of San Fernando have supported each other the project has also provided support to a school near the dam and the families in the surroundings.

The sustainable energy projects such as the Hydroelectric Project of La Esperanza have considerable interest for the World Bank and for the world.  The World Bank is exploring new ways to offer innovative financial mechanisms that provide assistance to mitigate adapt and achieve quick penetration of innovations in technology.  Currently the World Bank is Managing 10 carbon funds and financial facilities for approximately 2 billion dollars for 66 private businesses and 16 governments.