IIC Finances Modernization of 43 MW Biomass-fired Plant in Ecuador
Loan of US$8 million will help reduce CO2 emissions and support an extensive supply chain of Ecuadorian SMEs
Washington, D.C., June 21, 2013 — The Inter-American Investment Corporation (IIC) and Sociedad Agrícola e Industrial San Carlos S.A. (SAISC) have signed a loan agreement for up to US$8 million to modernize and expand a sugar plant and an electric power cogeneration facility with 43 MW of nominal capacity, fueled with waste from the company’s sugar production process.
SAISC will use sugarcane bagasse to produce more than 100,000 MWh of additional renewable energy annually, which will help prevent greenhouse gas emissions equivalent to those generated by some 15,000 automobiles per year. The proceeds of the loan will be used to finance the electrification of the plant’s sugar production processes, expand its steam, water, and electrical infrastructure, and build an electrical substation.
In the words of Javier Hernández, the IIC’s lead investment officer responsible for the operation, “With the new cogeneration facility, SAISC will not only cover its own energy needs but will also supply green energy to the Ecuadorian market, thereby reducing dependency on fossil fuels. SAISC will also make investments to boost energy efficiency in its sugar plant and will continue to support a supply chain of approximately 350 cane growers.”
SAISC financial manager, Ángel Zurita, noted, “We thank the IIC and its officers who evaluated the project and reiterated their confidence in our company by supporting this important project—the largest we have undertaken thus far. Our partnership with the IIC, which began in 2010, has been strengthened, laying the groundwork for a far-reaching relationship.”
Established in 1897, SAISC is an integrated producer of sugar, molasses, and electric energy. The company is listed on the Guayaquil stock exchange, has its own plantations, and accounts for approximately 34% of Ecuador’s sugar market. SAISC already operates a 35 MW power cogeneration plant and, with the IIC investment, will increase its nominal generation capacity to 78 MW.
In 2010, the Ecuadorian Ministry of the Environment recognized SAISC with its “Punto Verde” environmental award for the company’s bagasse-fired electric power cogeneration plant. This marked the first time the award was bestowed in the country’s history. Also in 2010, SAISC was declared Ecuador’s first eco-efficient company.
This project is the IIC’s second operation with SAISC. The first, a loan approved in 2010, improved the efficiency and productivity of processes at the plant as well as sugarcane planting and harvesting practices in the fields.
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. In 2012, the IIC approved 73 operations totaling US$378.9 million. Throughout our history, we have approved nearly 800 direct loans to SMEs and financial intermediaries, for a total of US$4.8 billion. An additional US$2.8 billion has been mobilized through cofinancing and syndication agreements. For more information on IIC activities, visit www.iic.org.
Contact: Javier Hernández
Telephone: + 1 (202) 623-3992 in Washington, D.C.