Nicaragua, located in the Central American isthmus with an area of 130,370 square kilometers (sq km), shares borders with Honduras, Costa Rica, the Pacific Ocean, and the Caribbean Sea. Due to its location, the country is exposed to a number of events linked to natural climate variability, such as the El Niño and La Niña phenomena, monsoon-related events in the Pacific, tropical waves and hurricanes, among others. These generate serious threats, including droughts, floods, mudslides, water scarcity, and the destruction of crops, forests, and homes.
Investing in Nicaragua
CIF’s investments in Nicaragua are through its Scaling up Renewable Energy Program (SREP) and Clean Technology Fund (CTF). Both of Nicaragua's investment plans aim to generate geothermal power generation and develop rural areas. Specifically, the financing is helping to derisk geothermal development and attract private investors through supporting risky exploration drilling at target sites. It is also targeted at bringing modern electricity services to one million rural Nicaraguans, who are not covered by current electrification schemes and replacing traditional cookstoves, in order to curb deforestation and improve the living conditions of these households cooking with firewood. Small-scale hydropower, solar photovoltaic systems, and biofuels are also being developed.
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