IIC Approves Loan of US$6.65 Million for Clean Energy in Peru
Financing for a hydroelectric plant will help meet growing demand for electricity and reduce costs
Washington, D.C., November 18, 2014 – The Inter-American Investment Corporation (IIC) approved a loan of up to US$6.65 million to Peruvian company Hidrocañete S.A. to refinance the debt it acquired to build and operate the run-of-the-river hydroelectric plant called Nuevo Imperial-Cañete. The hydroelectric plant, which is located on the Nuevo Imperial irrigation canal, approximately 170 km south of Lima, has been operating commercially since April 2012. It has installed power generating capacity of 4 MW and is designed to generate up to 33 GWh of clean energy per year.
“With this operation, the IIC will be supporting the development of small-scale hydroelectric projects in Peru by providing long-term financing,” said Olga Lucía De Narváez, the IIC lead investment officer in charge of the project. “This hydroelectric project will provide additional power at a very low cost to meet growing demand.”
Also, under the FINPYME Technical Assistance program, the IIC provided the company with technical advisory services to support the financial structuring of the loan and thus the project’s financial sustainability.
Hidrocañete is a joint stock company established in Peru in December 2004 to develop, build, and operate power plants and to generate and sell electric power.
About the IIC
The IIC, a member of the Inter-American Development Bank (IDB) Group, promotes private-sector development in Latin America and the Caribbean with a focus on small and medium-sized enterprises (SMEs). We help companies streamline management processes and provide them with financing in the form of equity investments, loans, and guarantees, as well as innovative technical assistance, advisory services, and knowledge products. In 2013, the IIC approved 71 operations totaling US$415.4 million. Since its inception in 1989, the IIC has approved more than 800 direct loans to SMEs and financial intermediaries, for a total of US$5.21 billion. An additional US$3.01 billion has been mobilized through cofinancing and syndication agreements. For more information on the IIC, visit www.iic.org.
Contact: Olga Lucía De Narváez
Telephone: +571-325-7052 in Bogotá, Colombia