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46. A third challenge observed in the region is the efficiency of the EIA approval process. Proposed projects are generally screened by environmental authorities at the outset of project preparation for their environmental sensitivity. Projects that present a higher level of potential impacts (as is usually the case for geothermal energy projects) are required to prepare full EIAs and may include consultative processes with local communities and other stakeholders. Most EIA review processes are centralized within national level environmental agencies. However, local municipalities may have regulations regarding construction and site selection, and generally participate in consultative phases of environmental review. Although official review times for EIAs in Central American countries vary between 10 and 40 days, the reality is that they take much longer to process.22 A documented case in Costa Rica for Las Pailas indicated four years for all studies and environmental licenses to be obtained. This case in particular may have had greater scrutiny given that the site borders a protected area.23 Business models 47. The countries of Central America have used different business models to promote geothermal investment, reflecting different combinations of public and private ownership, investment, and contracts, which are related to the specific structure of the sector in individual countries. Three primary business models for geothermal development have been identified in Central America: x State-owned companies. This approach was used throughout the region until the early nineties to develop geothermal power plants. Under this model, a national power company takes the exploration risk and receives the benefits of the project. Currently, this approach is used in Costa Rica where geothermal development is governed by ICE, the national power company. x Public-private partnerships. Under this model, which is used in El Salvador, the government forms a joint venture with a private sector company. When the energy sector in El Salvador was reformed in the late 1990s, geothermal production was assigned to a company (La Geo) separate from the national power company; La Geo partnered with the Italian company ENEL which has provided capital to the enterprise, thereby providing the needed financial resources to invest in geothermal exploration and development. x Private sector concessions. The third model essentially provides public concessions of geothermal resources to private companies for development. Guatemala and Nicaragua in particular have relied on the private sector to develop geothermal resources under a concession system. In this case, the concession provides the private developer the right to use geothermal steam in a given area (the size of which may vary according to the state 22 Comisión Centroamericana de Ambiente y Desarrollo (CCAD) y Unión Mundial para la Naturaleza (UICN). 2006. Estudio comparativo de los sistemas de evaluación de impacto ambiental en Centroamérica: Proyecto Evaluación de Impacto Ambiental en Centroamérica. Una herramienta para el desarrollo sostenible. San Jose. Costa Rica. UICN-Oficina Regional para Mesoamérica. 110 p. 23 Viquez, Manuel B., 2006. Geo-Environmental Aspects for the Development of Las Pailas Geothermal Field, Guanacaste, Costa Rica. Geothermal Training Programme. Reports 2006. Number 8. 27PDF Image | Drilling Down on Geothermal Potential Central America
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