Bladex Provides $116 Million Credit Line for Manzanillo Gas & Power Project

A consortium including FICDIE I, Grupo Popular, Empresa Generadora de Electricidad Itabo, and Enerla Energía de las Américas secured a $116 million contingent credit line from Bladex to finance the Manzanillo Gas & Power (MG&P) project in the Dominican Republic. According to legal advisor Clifford Chance, the project aims to deliver 840 MW of capacity, which is projected to contribute more than 15% of the country’s total electrical generation.

How does the $116 million Bladex credit line support MG&P?

The credit line serves as a financial safety net. According to Clifford Chance, the contingent letters of credit issued under this agreement provide the necessary backup for specific payment obligations defined in the project documents.

This funding is a component of a much larger financial effort. The Manzanillo Gas & Power project has required an investment exceeding $1.7 billion to date. By securing these contingent lines, the borrowers ensure that the project remains viable during its critical execution and operational phases.

Did you know? The MG&P project isn’t just a local effort; it relies on a global supply chain, including a long-term liquefied natural gas (LNG) purchase agreement with Shell.

Why is the Manzanillo Gas & Power project a shift in energy strategy?

The project marks a move toward large-scale, private-sector led energy security. With a projected capacity of 840 MW, MG&P is positioned to handle a significant portion of the national load. Dominican media reports that the project will contribute over 15% of the country’s electricity generation.

Unlike older energy models, MG&P uses an integrated LNG supply chain. This includes long-term energy purchase agreements with Dominican electricity distributors, reducing the volatility often associated with fuel imports. This structure creates a more predictable cost environment for the end consumer.

Comparing the Scale of Investment

The $1.7 billion investment represents one of the most significant private energy undertakings in the Dominican Republic. While many regional projects rely heavily on state funding, the involvement of entities like Grupo Popular and the FICDIE I investment fund demonstrates a trend toward private equity taking the lead in national infrastructure.

What international standards are governing this infrastructure?

The project does not follow local guidelines alone. According to Dominican media, MG&P operates under international standards aligned with the World Bank and BID Invest.

Proposed natural gas power plants | FOX6 News Milwaukee

These standards require strict adherence to:

Environmental monitoring and tracking.
Comprehensive risk management protocols.
Traceability of resources and operational impacts.

Adhering to these multilateral guidelines makes the project more attractive to international lenders like Bladex and ensures the infrastructure meets global sustainability benchmarks.

Pro Tip: When analyzing energy projects in emerging markets, look for “Multilateral Alignment” (like World Bank or BID). It usually indicates lower regulatory risk and higher transparency in environmental reporting.

Who are the legal and financial architects of the deal?

The complexity of a $1.7 billion project requires a massive legal framework. Bladex was represented by Clifford Chance, with Alberto Haito leading the counsel alongside associates David Rondón and Genevieve McCarthy.

The borrowers—FICDIE I, Grupo Popular, Itabo, and Enerla—employed a multi-jurisdictional legal team. Cleary Gottlieb Steen & Hamilton LLP handled the New York side, while Pellerano & Herrera and Bobadilla Oficina de Abogados managed the legal execution and due diligence within the Dominican Republic.

Frequently Asked Questions

What is the total projected capacity of Manzanillo Gas & Power?

The project is projected to have a capacity of 840 MW, contributing over 15% of the Dominican Republic’s electricity generation.

Who is providing the fuel for the MG&P project?

The project is backed by a long-term LNG purchase agreement with Shell.

Which financial institution provided the $116 million credit line?

The Banco Latinoamericano de Comercio Exterior (Bladex) provided the contingent credit line.

What standards does the project follow?

It follows international standards aligned with the World Bank and BID Invest, focusing on environmental management and risk traceability.

Want to stay updated on energy infrastructure and emerging market finance? Subscribe to our industry newsletter or leave a comment below to discuss how LNG is reshaping Caribbean energy independence.