April 12 (SeeNews) - German development bank KfW has agreed to extend nearly EUR 220 million (USD 251m) in loans for renewable energy and eco-housing projects in Mexico, it announced today.
The bank has signed deals with Mexican development bank Banco Nacional de Comercio Exterior (Bancomext) for two loans of EUR 88 million and EUR 80 million that will finance wind, small hydro, biomass and solar power projects. The loans that will go to private project developers on favourable terms.
KfW will give a third loan of EUR 50 million to another Mexican development bank, Sociedad Hipotecaria Federal (SHF), for the second phase of the EcoCasa programme. Already, nearly 12,000 "green" housing units for low and middle-income households have been built under the project and it is now being renewed.
The loans will support Mexico’s efforts to cut greenhouse gas emissions by at least 22% from 2000 to 2030 and also improve energy supply, KfW said. The financing agreements were signed during President Enrique Pena Nieto's official visit to Berlin.