SIBA Energy

The Dominican Republic has experienced robust economic growth and a sharp increase in electricity demand, with peak loads threatening the stability of the national grid. In 2021, national electricity demand grew by over 15% compared to the previous year, prompting the government to declare the urgent need for new generation capacity to avoid supply interruptions and support continued economic and social development.

To address this, the Ministry of Energy and Mines launched an international tender for up to 400 MW of new peaking capacity, prioritizing natural gas as a cleaner alternative to diesel and coal. SIBA Energy Corporation, a consortium of Empresa Generadora de Electricidad Haina S.A. (EGE Haina), Monte Rio Power Corporation Ltd. (MRPC), and Soluciones en Gas Natural Energía SGN ENERGÍA S.A. (SGN), was awarded the contract, leveraging their combined technical, operational, and financial strengths to deliver a state-of-the-art combined-cycle power plant in Boca Chica, Santo Domingo.

The SIBA project was designated a national priority, not only for its role in ensuring grid reliability during periods of high demand, but also for its contribution to the country’s energy transition and climate goals. By replacing more polluting fuels with natural gas, SIBA aims to advance the Dominican Republic’s commitments to the UN Sustainable Development Goals (SDGs), particularly in clean energy, decent work, and climate action.

To realize the vision for SIBA, the consortium entrusted CIFI with structuring a robust and scalable financing solution. The financing journey began with a bridge loan in December 2022, providing immediate capital for construction and operations. Initially set at USD 72.9 million, the bridge financing was later increased to USD 120 million in mid-2023. As the project progressed, CIFI successfully transitioned the structure into a long-term syndicated loan of USD 322.5 million, securing financial continuity and supporting the expansion into the second phase of the project. These efforts formed part of a broader investment strategy, with total project costs reaching USD 662.5 million.

To deliver a financing solution of this scale and complexity, CIFI acted as Mandated Lead Arranger, coordinating a broad syndication effort that brought together both international and local financial institutions. The long-term facility included a significant local currency tranche provided by the Closed-End Free Investment Fund for the Development of Dominican Infrastructure I, which contributed the equivalent of USD 71.5 million in Dominican pesos. CIFI also participated directly with an exposure of USD 18 million, while other key participants included Banco Múltiple BHD, Banreservas, Banco Popular Dominicano, Bladex, and BPR Bank. This collaborative approach not only diversified funding sources and risk but also ensured alignment with local market needs and regulatory requirements.

This financial structure was closely aligned with the technical development of SIBA, which was designed in two phases and strategically connected to the National Electric System at 138 kV through the expansion of Boca Chica’s existing substation. The first phase, with a maximum net power of 190 MW in simple cycle, began operation on May 30, 2023. The second phase, expected to launch in late 2025, will add a combined cycle capacity of 70 MW, further strengthening the country’s energy infrastructure.

CIFI’s role was pivotal, not only in structuring the financing, but also in facilitating collaboration among stakeholders, managing risk, and ensuring compliance with sustainability goals.