CHATTANOOGA, Tenn., Feb. 25, 2003 -- Tennessee Valley Infrastructure Group Inc. (TVIG) has secured US $1.89 million in debt financing for the first phase of development of its Utila Island, Honduras power and water purification project.
The financing was secured from Banco Grupo El Ahorro Hondureno and the Central American Bank for Economic Integration, and supplements investor equity in the project. Local Honduran and U.S. investors, including TVIG, have formed a private corporation, Utila Power Company (UPCO) to generate and distribute electricity throughout the Island of Utila.
The funding launched the first phase of the privatization effort, with UPCO taking charge of the existing transmission and distribution system operated by Empresa Nacional de Energia Electica (ENEE). TVIG will install its Integrated Infrastructure Platform™ (IIP™), which includes new generating facilities, prepaid power metering, as well as water purification units.
"UPCO will now be able to provide island residents with reliable, 24-hour a day power. Additionally, during this phase of the project, we'll replace many individual generators, bringing private and commercial electricity consumers onto the island grid. This will reduce Utila's consumption of fossil fuels and relieve some of the environmental stress associated with multiple diesel generators," states Robert Blenker, president and chairman of UPCO.
Richard Ector, TVIG president and CEO, adds, "In addition to providing more efficient and reliable power to the Island of Utila, TVIG will produce fresh water through the seawater desalination units of its Integrated Infrastructure Platform™ (IIP™), accomplished by utilizing the energy by-products of the IIP. This will reduce the stress on the island's aquifer, helping to eliminate concerns about adequate potable water for Utila's residents. These infrastructure improvements are designed to have a positive impact on residents' standard of living and on Utila's economy, particularly as a budding tourist destination."
Construction for the project has begun, and the first phase is scheduled to begin providing power to Utila residents in April.
About TVIG
Headquartered in Chattanooga, Tennessee, TVIG specializes in mid-scale power and utility projects, including the delivery of affordable, municipal-scale infrastructure solutions to emerging economies. For more information about TVIG, visit : www.tvigroup.com.
