Press Releases
print

IFC Promotes Energy Diversification, Efficiency in the Dominican Republic with Natural Gas


In Washington, D.C.:
Zibu Sibanda

Phone: (202) 473 0605

E-mail:
zsibanda@ifc.org

Adriana Gomez

Phone: (202) 458 5204

E-mail:
agomez@ifc.org


Washington, D.C., July 13, 2010—IFC, a member of the World Bank Group, is providing $5 million in quasi equity to Linea Clave International S.A., a natural gas distribution company, to help reduce the Dominican Republic’s dependence on oil-based energy fuels, and diversify the country’s energy mix.  

In 2007, Linea Clave was the first company to distribute compressed natural gas to industrial clients in the Dominican Republic. The company began distributing liquefied natural gas in January 2010, providing alternative natural gas solutions to its clients.  The company has established itself as a pioneer in natural gas distribution in the country, with a solid reputation for technical expertise and operational reliability.


IFC’s financing will help Linea Clave develop its industrial client base; the company plans to expand its business to supply natural gas to hotel clusters, power generation companies, and the transport sector. The investment supports the goal of the Government of the Dominican Republic to generate at least 50 percent of the country’s energy from natural gas by April 2011. It also helps the country foster competitiveness through cleaner production, decreasing energy consumption and costs, and reducing greenhouse-gas emissions.


Ricardo Canalda, a major shareholder and founder of Linea Clave International, said, “We appreciate the support we have received from IFC as we grow our business and further develop the natural gas sector in our country. IFC’s involvement in this project has been invaluable in dealing with corporate governance and environmental questions.”


Vincent Gouarne, IFC Director for Latin America and the Caribbean said, “IFC’s support to Linea Clave’s expansion marks a key step in our strategy to support the development of the natural gas sector in the Dominican Republic, which will bring the benefits of a cleaner and less expensive fuel to consumers. We look forward to working with Linea Clave, a sponsor that has helped develop the natural gas sector in the country.”


This investment in Linea Clave follows a $20 million financing package that IFC provided to Banco BHD recently to start the Corporation’s first energy efficiency program in the Caribbean region. Both investments are expected to play an important role in addressing the Dominican Republic’s energy challenges, improving competitiveness, and mitigating global climate change.  


In the Dominican Republic, IFC is working to improve access to basic infrastructure, reduce external vulnerability and increase access to energy by the poor. IFC also supports climate change mitigation efforts and promotes the growth of energy efficiency solutions.


About IFC

IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing capital for private enterprise, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit
www.ifc.org.