Power Project and Umbress Agreement to invest US$1200 million at on January 29, 2024 Xela
GUATEMALA CITY (TIP): In recent years, India has actively expanded its reach into Latin America, notably in Guatemala, through collaborative initiatives that encompass investments, technology transfer, fostering people-to-people contacts, and skill development for infrastructure projects. This proactive engagement aligns with India’s guiding philosophy of ‘Vasudev Kutumbakam’, reflecting the belief in the world as one family. It also underscores India’s broader objectives of strengthening trade and investment ties in the Latin American region, with a particular emphasis on bolstering connections with the Central American Integration System (SICA) at a regional level. India’s leadership role in the Global South is characterized by a consistent commitment to solidarity and cooperation with developing nations, addressing shared challenges, and fostering mutual development. This commitment led India to actively provide developmental assistance, financial aid, and technical expertise to countries in the Global South.
Given its status as the largest Central American country in both population and economy, Guatemala assumes crucial importance as a key partner for India in the Americas. Celebrating the 50th year of a robust bilateral relationship, India and Guatemala have undertaken numerous collaborative engagements. This strategic collaboration not only deepens bilateral ties but also contributes to the socio-economic development of both nations. While India extends its influence in the region by emphasizing people-to-people contact and skill development seeking to build sustainable partnerships for mutual benefit, Indian companies are committed to invest in the country, collaborating with Lakshmi Capital, an Indian company. This initiative not only reinforces the enduring partnership between India and Guatemala but also exemplifies India’s dedication to fostering economic development and cooperation on the global stage.
In a significant initiative, the Government of India, in collaboration with the Municipality of Xela and Lakshmi Capital, has solidified its commitment by signing six Letters of Intent. These documents mark the commencement of several impactful infrastructural projects in Xela (Quetzaltenango), Guatemala. These projects are poised to have a direct and positive impact on the daily lives of local inhabitants, illustrating the strength and depth of the relationship between the two democracies. The signing of these Letters of Intent underscores the shared commitment to fostering socio-economic development and further strengthens the collaborative efforts between India and Guatemala in the realm of infrastructure and public welfare.
The first LoI was signed on 26 January 2024 during Flag Hoisting Ceremony on Republic Day of India at Embassy of India for the introduction of 800 electronic buses in Xela marks a significant and forward-thinking initiative for the community. The introduction of electronic buses showcases a commitment to innovative and modern transportation solutions. It reflects a forward-looking approach to public transit that embraces technological advancements for the benefit of the community. The introduction of a large fleet of electronic buses can significantly enhance the public image of Xela. It will send a clear message that the municipality is committed to sustainable and responsible urban development, which can be positively received by residents and visitors alike.
Second Letter of Intent was also signed on 26 January 2024 morning at Embassy of India for the installation of a cable car in Xela. This cable car will significantly improve accessibility, offering an efficient and convenient transportation option, particularly beneficial for residents in hilly or challenging terrains. The introduction of this cable car is expected to enhance Xela’s appeal, attracting tourists seeking unique and scenic transportation experiences. This, in turn, has the potential to positively impact the local economy by promoting tourism-related activities. The cable car journey will enhance the viewing of breathtaking views of Xela and its surroundings, adding a delightful dimension to transportation in the city.
Third Letter of Intent was signed in the evening of 26 January at Embassy premises during Republic Day Reception for solid waste management plant in Xela. A waste management plant will ensure proper disposal and treatment of solid waste, preventing environmental pollution and degradation. It contributes to maintaining the ecological balance in and around Xela. Effective solid waste management will reduce the risk of health hazards associated with improper waste disposal. Proper waste management will improve the aesthetics of the community by reducing litter and maintaining cleanliness. This fosters community pride and positively influences the overall image of Xela.
Fourth LoI was also signed in the evening of 26 January at Embassy of India for a hydro turbine in Xela. The installation of a hydro turbine in Xela will offer a range of significant benefits for the community and the environment. A hydro turbine will harness the power of flowing water to generate electricity. This is a clean and renewable energy source that contributes to reducing reliance on fossil fuels, decreasing greenhouse gas emissions, and promoting sustainable energy practices. The implementation of a hydro turbine will create job opportunities during its construction, operation, and maintenance phases. Utilizing a hydro turbine for electricity generation will enhance energy independence for Xela. Hydroelectric power is considered a low-carbon energy source. By generating electricity without burning fossil fuels, the hydro turbine will help reduce the carbon footprint of Xela, contributing to global efforts to combat climate change.
The fifth and sixth Letters of Intent signed at Municipality of Xela on 29 January 2024 between the Municipality of Xela, and Lakshmi Capital pertains to a significant 75-megawatt (MW) solar power project in Xela (Quetzaltenango), Guatemala. This initiative reflects a forward-looking approach to sustainable and clean energy solutions, emphasizing the importance of renewable energy in modern infrastructure development. The 75MW solar power project is expected to contribute substantially to the local energy landscape, providing a reliable and environmentally friendly source of electricity for the residents of Xela. Beyond the immediate benefits of increased energy access, the 75MW solar power project underscores the commitment of the involved parties to fostering economic development, promoting environmental sustainability, and enhancing the overall quality of life for the local population in Xela. The last Letter of Intent was an umbrella MoU which will cover the entire investment of US$1200 million in the region by Lakshmi Capital.
The comprehensive set of proposals designed for the development of Xela reflects the strong and friendly ties between the two countries. Ambassador of India to Guatemala, Dr. Manoj Kumar Mohapatra, expressed his heartfelt appreciation for the amicable relationship and cordial cooperation between India and Guatemala. He specifically commended the Indian company Lakshmi Capital for its unwavering commitment to invest approximately $6 billion in Guatemala, highlighting the commendable dedication of the company to contribute to the economic development of the region. Dr. Mohapatra also extended congratulations to the Mayor of Xela, Mr. Juan Fernando Lopez, for his leadership and for attracting significant investment to Xela. This acknowledgment underscores the collaborative efforts between the governments, businesses, and local authorities in fostering development initiatives that positively impact the lives of the people in Xela.
Through the platform, Ambassador Dr. Manoj Kumar Mohapatra reassured the Government of the Republic of Guatemala of the enduring diplomatic and economic goodwill between the two nations. He emphasized the shared commitment to advancing socio-economic growth and infrastructure development, underscoring the collaborative efforts aimed at fostering a stronger and more prosperous future for both India and Guatemala. This assurance reflects the commitment to maintaining and strengthening the bilateral relationship, fostering mutual understanding, and contributing to the overall well-being of the people in both countries.
