TRECSA Guatemala Green Transmission Line

The Inter-American Development Bank's (IDB) private arm, the IDB Invest, is considering financing Transportadora de Energía de Centroamérica S.A. (TRECSA), a subsidiary of the Colombian Grupo Energía Bogotá and Edemtec, to complete work on an energy transmission project (PET-01-2009) in Guatemala. The project is part of the Government of Guatemala’s Transportation System Expansion Plan and consists of building and maintaining 783 km of 230kW electric power transmission lines, 11 new transforming stations, and 12 existing substations. TRECSA began work on the project in May 2012, and as of December 2020, the company has completed 86 percent of the project.

BIC along with our partner in Guatemala, la Coordinadora de Comunidades Afectadas por TRECSA, have identified the following concerns about the project:

Project-affected communities in several municipalities have condemned the project for its lack of consultations, the disrespect shown to Indigenous Peoples who requested meaningful consultations and said no to the project, as well as the company’s initiation of construction works without construction licenses at the municipality level.

TRECSA has criminalized at least 28 people, including community authorities and human rights defenders, for exposing the illegal actions of the company. The company has also presented charges against community members who have raised questions about the project. Many community members now fear engaging because of reprisals (some HR defenders are also suffering direct attacks against their life, tracking, and stigmatization).

Other main concerns include the impacts of the electric transmission lines on cultural and natural heritage sites such as in Antigua Guatemala (which are recognized by UNESCO as National World Heritage sites), impacts and alterations in the flows of the rivers and streams due to deforestation in water recharge areas, and the company’s seizure and imposition of easements on rights of way to private properties.

TRECSA reports it has less than 15 percent of the project to finish and complete. The IDB Invest’s loan amount seems very high considering what’s needed for the project to be completed, and the size of the loan could impact the cost of electricity in the future.

It’s also important to note that the company is currently under investigation by the Public Ministry’s Special Prosecutor Against Impunity in the case “Corruption Mechanism in the Ministry of Energy and Mines”. The company Edemtec, S.A. paid Q.33,923,587.40 (US$4,523,145) to the former Minister of Energy and Mines, Erick Archilla, between 2013 and 2015 to receive the first extension of the contract. Four Colombians from Edemtec are accused of active bribery and have an international arrest warrant. The Government of Guatemala has just given TRECSA its fourth extension to the contract in May 2021, after the previous one ended in December 2020 (the company appears to have worked for 6 months without a contract in force). TRECSA also filed a dispute against the Government of Guatemala in November 2020 at the International Center for Settlement of Investment Disputes (ICSID) of the World Bank, and the arbitration process is currently pending.

Last Updated

February 14, 2022

Location

Guatemala

Institution

Inter-American Development Bank

Campaigns

Forests and Biodiversity, Indigenous Peoples, Stakeholder Engagement

Total Cost

USD $145 million

Funding

The IDB Invest

MDB Financing Status

Proposed

Monitored by

Carolina
Juaneda