Spain’s biggest power company, Endesa, has joined forces with six other power companies in a bid to link an $320m interconnection line through Central America joining Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and Panama.

Leading the consortium is Empresa Propietaria de la Linea (EPL) which will build operate and maintain the 1880 km long network for the above Central American countries. Endesa, which equally owns one-seventh of the new project, will take on general management duties.

During the shareholders’ extraordinary meeting held last week, the countries involved inked a deal that ensured the implementation of a regional interconnection treaty. They also created and developed two regional bodies, the Comision Reguladora de Energia and the Ente Operador de la Red, which will provide both financial stability and institutional coverage.

The project was designed to lower electricity tariffs and also enhance profit sharing by exporting electricity to neighbouring countries.