Financial Support Fund for the Electrification of Non-interconnected Areas (FAZNI)
The National Government, through the Regulatory Decree 1124 of 2008 and Articles 81 to 83 of Law 633 of 2000, established the Financial Support Fund for the Electrification of Non-interconnected Areas (FAZNI).
The purpose of FAZNI is to finance energy infrastructure though investment plans, programs and projects in non-interconnected areas (ZNI), in accordance with the law and the energy policies established by the Ministry of Mines and Energy for non-interconnected areas, in light of the policy guidelines established by the National Council of Economic and Social Policy in documents such as CONPES 3108 of 2001 and 3453 of 2006, with the intention of financing priority investment plans, programs and/or projects for the construction and installation of new electrical infrastructure and for the replacement or repair of existing equipment, for the sake of expanding coverage and satisfying the energy demand of Non-interconnected Areas.
Law 855 of December 18 of2003 defined which local areas are considered to be non-interconnected and set priorities for the allocation of FAZNI resources
Plans, programs, and projects that are eligible for the allocation of FAZNI funds can be presented through the following mechanisms:
1. As a result of public calls for proposals designed and sent out by the Ministry of Mines and Energy for infrastructure investment projects in non-interconnected areas.
2. As a result of public calls for proposals designed and sent out by the Ministry of Mines and Energy for total or partial implementation of the required infrastructure through sustainable management frameworks for providing the electric energy service in non-interconnected areas as discussed in Article 65 of Law 1151 of 2007.
3. On the initiative of local authorities, IPSE or electrical service providers, whether they belong to the National Interconnected System (SIN) or to Non-interconnected Areas (ZNI). If these projects are part of the frameworks described in paragraphs 1 and 2, they cannot be presented using the mechanism described in this paragraph.
The Ministry of Mines and Energy will establish the conditions for the different projects in the respective guidelines, in accordance with Decree 1124 of 2008, for the presentation of projects such as those previously described in paragraphs 1 and 2.
FAZNI regulations are structured according to Regulatory Decree 2884 of 2001 and by the internal regulations established by the Management Committee through the following agreements and according to the Project Presentation Manual
The Management Committee of the Financial Support Fund for the Electrification of Non-interconnected Areas has allocated funding for the construction of new electrical infrastructure