IIC invests in the development of hydropower projects in rural areas of Peru
The IIC investment will contribute to the development of clean energy and create alternative economic opportunities for the residents of Huánuco department
Washington, D.C., November 2, 2015 — The Inter-American Investment Corporation (IIC) closed an agreement for an investment in common stock of up to US$3.9 million in Peruvian company Andean Power Generation S.A.C. The proceeds of the investment will be allocated to the construction and commissioning of the El Carmen and 8 de Agosto run-of-the-river hydropower projects, with a total installed capacity of 27.4 MW in the Monzón district, Huánuco department, Peru.
“This investment will add a total of 204 GWh of clean energy per year to the Peruvian power system, equivalent to the annual supply of energy for more than 150,000 people,” said Aniceto Huertas-Corcelles, IIC senior investment officer in charge of the operation. “Furthermore, the construction and commissioning of the projects will create more than 400 jobs and support business activity and the development of the local communities.”
In addition to its investment in the project, the IIC leveraged funding from the China-IIC SME Technical Assistance Trust Fund to study the hydrology on site and assess overall project feasibility.
Andean Power Generation S.A.C. is a Peruvian company whose purpose is to channel investments to Generación Andina S.A.C., the owner and developer of the two hydroelectric power plants, as well as a transmission line and the related substations. The hydroelectric plants are expected to start operating during the first quarter of 2016.
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). The Corporation provides companies with financing in the form of equity investments, loans, and guarantees, as well as with technical assistance, advisory services, and knowledge products. In 2014, the IIC approved 64 operations totaling $426.3 million. Since its inception, the IIC has approved more than 920 loan and equity investments for SMEs and financial intermediaries, for a total of US$5.63 billion. An additional $3.7 billion has been mobilized through cofinancing and syndication agreements. For additional information on the IIC's activities, visit www.iic.org.
Contact: Aniceto Huertas-Corcelles
Telephone: +1 (202) 623-2036 in Washington, D.C.