Manzanillo Transmission Line

The Dominican Republic is in the midst of one of the most dynamic energy transformations in the Caribbean. Renewable generation capacity has nearly quadrupled since 2020, the energy sector recently overtook tourism as the country’s leading driver of foreign direct investment, and new generation projects are coming online across the country. Yet for years, the grid’s ability to move power to where it is needed lagged behind its ability to produce it. Provinces in the northwest, including Monte Cristi, Valverde, and Santiago Rodríguez, faced chronic voltage instability, grid congestion, and limited access to reliable power. These bottlenecks constrained both economic development and quality of life, even as new generation capacity was being built nearby.

The Manzanillo Transmission Line, known locally as the Pepillo Salcedo – Guayubín – El Naranjo Transmission line, was conceived as a strategic response to this gap. Built as a 345 kV, 128-kilometer double-circuit line carried on 321 transmission towers, the project links the emerging energy hub of Montecristi to key substations and demand centers across the country. By enabling the transmission of energy from the Manzanillo gas-fired plant as well as nearby wind and solar assets, the transmission line plays a critical role in integrating an increasingly diversified energy mix into the national grid.

More broadly, the project represents a pivotal step in the Dominican Republic’s long-term energy strategy, which aims to expand the capacity of the National Interconnected Electric System (SENI) through 2028. By reinforcing the high-voltage backbone of the transmission system, it supports the country’s transition toward a cleaner, more diversified energy sources, strengthens energy security, and positions the northwest as a net generator.

To unlock this opportunity, CIFI structured and arranged up to USD 28.8 million in long-term project financing, participating directly alongside its Sustainable Infrastructure Debt Fund. The financing was developed under a conservative project finance framework, anchored in predictable cash flows derived from a reimbursement contract with Empresa de Transmision Electrica Dominicana (ETED), the state-owned transmission operator.

The structure was designed to minimize risk while ensuring long-term financial sustainability. The loan is secured by the assignment of ETED’s payment obligations under the reimbursement agreement, providing steady, dollar-denominated revenues over time. Importantly, the financing was disbursed only after the project was fully constructed, operational, and formally accepted by ETED, effectively eliminating construction and performance risk for lenders.

CIFI’s role extended beyond financial structuring. The institution coordinated a comprehensive due diligence process, including technical, legal, and environmental assessments, ensuring alignment with international standards such as the IFC Performance Standards and robust environmental and social management practices. 

By combining innovative financing with rigorous risk mitigation and ESG oversight, CIFI helped deliver a bankable solution for a project that is both technically complex and nationally strategic.