IIC supports the development of renewable energy projects in Brazil

11/08/2010

US$5 million loan will promote energy efficiency in Pernambuco, northeastern Brazil

Washington, D.C. - On November 9, 2010, the Inter-American Investment Corporation (IIC) approved a loan of up to US$5 million to Wind Power Energia S.A. (WPE) exclusively for financing working capital in the State of Pernambuco to support the company’s growth and to meet the increased demand for wind farms in Santa Catarina and Ceará.

With this operation, the IIC is supporting the wind power generator manufacturing sector in northeastern Brazil, promoting the production of renewable energy as an alternative to meet the growing demand for energy. The company is ISO 9001:2008-certified for the manufacturing of high-powered wind generation equipment. Its largest positive environmental impact is putting cutting-edge renewable energy technology within reach of the local market.

According to Santiago Cat, IIC Investment Officer in charge of the operation, "This initiative offers many possibilities for growth in the energy sector through the use of renewable resources, and in other areas as well, by protecting and improving the quality of the environment and technology development in Latin America. WPE is the only company in the region with the technology to manufacture a competitive, state-of-the-art product. The IIC’s participation is expected to strengthen WPE’s competitive advantages over international suppliers that derive from its domestic production, allowing it to avoid high transportation costs and benefit from access to local incentives, and creating economic and environmental benefits. Not only is this beneficial from a business perspective, but it also underscores the dual role that can be played by the private sector in increasing competitiveness and mitigating climate change in Latin America and the Carribean."

About Wind Power Energia S.A. (WPE)

Wind Power Energia S.A. is a Grupo IMPSA company that has designed, produced, and marketed high-powered wind generation equipment since September 2008 in Cabo de Santo Agostinho, State of Pernambuco, Brazil. WPE also provides construction services, including the assembly and installation of generators, electrical components, and other industrial equipment for the energy sector. Its annual production capacity is 300 wind generators and it is expanding to produce electromechanical equipment for hydropower plants, as well as increasing its capacity for producing wind power generators.

WPE primarily supplies wind farms in Brazil and, depending on demand, may begin to supply wind farms throughout the region. Since 2010, WPE has also been taking part in bidding processes for hydropower generation projects. For more information about WPE, please visit www.impsa.com

About the IIC

The IIC is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. The IIC’s mission is to promote the economic development of its regional member countries by encouraging the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. It does so by providing financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. In 2009, the IIC reached US$1.4 billion in assets and approved 40 operations channeling US$299.8 million to SMEs in the region. For more information on the IIC’s activities, please visit www.iic.int

Press Release also available in Portuguese

Contact: Santiago Cat

Telephone: + (5982) 915-3696

Email: santiagoc@iadb.org