The lack of feasibility analysis is affecting investment flows coming into the country, as many investors are withdrawing from participating in projects where there are no feasibility studies.
This not only affects the attraction of investments, but also the potential for banks to finance the projects, because they also need to rely on feasibility analysis for their decision making.
This is the view of the Guatemala Competitiveness coordinator, who says the lack of these studies is affecting projects relating to infrastructure, electricity, roads and others.
In this context, the expert adds that it is also necessary to have a portfolio of works, with their respective studies, in order to guide investors interested in the country.
An article in prensalibre.com states: "Carlos Colom, president of the National Energy Commission (CNEE), said that the country stopped doing feasibility studies in the late 1980’s and said it was because their intention was to save costs and lack of a long-term vision. He said the electricity sector is making a guide for investors, which includes basic data- the few that exist - in hydro, wind and solar power. "
Source: prensalibre.com
More on this topic
July 2011
Potential investors say they have the money and the intent to invest, but need basic information and potential projects.
In talks between energy distribution company officials and the National Electric Energy Commission (CNEE) with executives of foreign companies in the sector, a major setback has been indentified: Guatemala does not have essential information regarding the registration of river flows, rain and wind data, or a portfolio of potential projects.
October 2008
The National Electric Energy Commission established that in the next few years 38 transmission lines are urgently needed to be built.
The message to investors about which projects in the country's electricity network are priority was published by the National Electric Energy Commission in resolution 189-2008 which establishes which of the current and future lines and substations make up the Main System, Carlos Colom, president of the entity, reported.
December 2008
The National Institute of Electricity in Guatemala (INDE) is in preliminary talks with the Federal Electricity Commission of Mexico (CFE) to carry out the study.
Alberto Cohen, president of INDE, said that the institute is not willing to let the construction of the Xalala hydroelectric project just die, and explained that CFE delegates came at the start of December, and visited the area between Alta Verapaz and Quiche where the plant will be built, in order to budget the investment funds for the study. This could be between $5 and $10, said the official.
November 2011
In the first nine months of the year, electricity demand increased by 7.8% compared to the same period in 2010.
Prior to this, the average increase up to 2007 was between 4% and 6% annually, however 2008, 2009 and 2010 showed increases of 0.29%, 0.87% and 3.7% respectively.
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