IIC approves US$12 million loan for clean energy in Colombia
Two hydroelectric plants will meet the country’s growing demand for electricity by generating renewable energy
Washington, D.C., September 3, 2014 — The Inter-American Investment Corporation (IIC) approved a loan of up to US$12 million to the Colombian company PCHs Los Molinos S.A.S. E.S.P. for the development, construction, and operation of two small run-of-the-river hydroelectric plants on the San Matías River, in the municipalities of Granada and Cocorná, Department of Antioquia.
The plants, named El Molino and San Matías, will each have an installed capacity of 19.9 MW and together will generate 244 GWh of clean energy per year, thus reducing greenhouse gas emissions. The two plants are expected to begin commercial operations in 2016.
“With this operation, the IIC will be supporting the development of small-scale hydroelectric projects in Colombia through long-term financing,” said Olga Lucía De Narváez, IIC lead investment officer in charge of the operation. “Furthermore, the project will increase the country’s installed capacity of energy generation and will provide additional energy at a very low cost to meet growing demand.”
“Lareif is thrilled to have the IIC participate in its third small hydro transaction with us. Since 2008, we have valued their experience in financing small run-of-the-river hydros and look forward to their continued support,” stated Daniel L. Petrie, Vice President of HBI Banca de Inversión of PCHs Los Molinos.
Los Molinos is a company that was established in Colombia in November 2012 to develop the two aforementioned small, independent hydroelectric power plants. The power plants are being developed by Lareif, a Panamanian company that specializes in renewable energy projects.
Hydroelectric power plants are an important source of energy for Colombia, providing close to 77 percent of the electricity consumed in the country. An additional 18 percent is generated by thermoelectric plants.
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 IIC activities, visit www.iic.org.
Contact: Olga Lucía De Narváez
Telephone: +571-325-7052 in Bogotá, Colombia