IIC Supports Renewable Energy Development In Argentina
US$14 million loan to promote wind power generation in Chubut Province, in southern Argentina
Washington, D.C. – On December 6, 2011, the Inter-American Investment Corporation (IIC) approved a loan to Hychico S.A. for up to US$14 million, comprising an A loan of up to US$8 million, to be financed by the IIC, and a B loan of up to US$6 million, to be financed by financial institutions acceptable to the IIC.
The loan will provide take-out financing for the construction and start-up of the Diadema Wind Farm, comprising seven 0.9-megawatt Enercon E-44 wind turbines installed in the Diadema oil field owned by Compañías Asociadas Petroleras S.A., located 27 kilometers outside the city of Comodoro Rivadavia. The wind turbines are interconnected by underground and overhead lines. The power generated by the turbines is transmitted to the Diadema transformer station via a 33kV transmission line over a distance of 5.7 km.
According to Ana María Orellana, the IIC investment officer in charge of the operation, "With this operation, the IIC is promoting the use of renewable energy to mitigate climate change and meet Argentina’s growing demand for energy, while at the same time helping to reduce dependence on fossil fuels. Hychico is expected to contribute over US$21.5 million of net value added to the economy. The operation is also anticipated to result in more than US$8.7 million in foreign exchange savings. Expected employment is approximately 100 persons during the construction period and six during operations."
Hychico was established in 2006 to develop an alternative renewable energy program. In addition to running the 6.3-megawatt Diadema Wind Farm, Hychico produces and sells hydrogen and oxygen, and generates power based on renewable energy.
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 2010, the IIC reached US$1.4 billion in assets and approved 49 operations channeling US$374.8 million to SMEs in the region. For more information on the IIC’s activities, visit a www.iic.org
Contact: Ana María Orellana
Telephone: + (562) 431- 3707