Guatemala - Energy Transition Support Project

Overview & Synopsis

Guatemala Energy Transition Support Project for Guatemala has the development objectives of enabling renewable energy development and enhancing the efficiency of public power utilities. Component 1: Support feasibility of geothermal and transmission infrastructure includes Sub-component 1.1 on exploration drilling to confirm geothermal resources in the Tecuamburro and Moyuta fields, financing surface exploration, drilling campaigns for slim and production-sized wells, reinjection wells, access civil works, environmental and social impact assessments (ESIAs), feasibility studies for geothermal power plants, detailed technical specifications and terms of reference, and transaction advisory for project structuring. It also covers, subject to feasibility confirmation and resources, the preparation of ESIA documents for future geothermal power plant development. Sub-component 1.2 on technical assistance for transmission infrastructure development finances conceptual and detailed engineering studies, grid impact analyses, bidding documents and technical specifications, and required environmental and social instruments to prepare the expansion of a 400 kV backbone from the Brillantes substation through the metropolitan region toward Tactic, incorporating climate resilience measures to withstand extreme weather and ensure system reliability and regional power trade readiness. Component 2: Operational and technical efficiency improvements for Electrical Municipal Companies (EEMs) and managerial and governance improvement of the National Electrification Institute (INDE) includes Sub-component 2.1 on performance and distribution infrastructure enhancement for EEMs, supporting rehabilitation, expansion, and reinforcement of distribution networks and substations with climate considerations; mass deployment of advanced metering, including smart meters; and design, development, and implementation of an Integrated Operational and Commercial Management System, with an infrastructure database, revenue and loss control, billing, customer management, and communications for data capture and processing, as well as works supervision. Sub-component 2.2 on INDE performance improvement implementation supports corporate governance enhancements, reengineering and modernization of management processes, information technology systems, financial corporatization, a comprehensive communication strategy, and environmental and social management systems aligned with diagnostics conducted with support from the International Finance Corporation (IFC). Component 3: Capacity building and project implementation support finances strategic planning activities, including investment strategies and a hydropower master plan; specialized personnel and expert consultants for the Project Implementation Unit; external audits; capacity building for INDE, EEMs, and other entities; and stakeholder coordination to ensure compliance. It also strengthens INDE’s framework for preventing and responding to sexual harassment through a survivor-centered protocol, staff training on policies and procedures, and internal awareness campaigns, contributing to a safer and more equitable workplace.