New 90MW Wind Farm Promotes Use of Renewable Energy in Uruguay
US$20 million IIC loan to help diversify Uruguay’s energy matrix and reduce CO2 emissions
Washington, D.C., December 9, 2013 — The Inter-American Investment Corporation (IIC) has approved a subordinated A/B loan of up to US$20 million to finance part of the construction of the Fingano S.A. and Vengano S.A. wind farms located in Uruguay’s Sierra de Carapé mountains, some 140 km east of Montevideo. The financing includes a subordinated B loan for up to US$10 million granted by the Corporación Interamericana para el Financiamiento de Infraestructura (CIFI).
The project consists of a 90-megawatt wind farm encompassing two smaller wind farms (50MW and 40MW, respectively) and includes installation of 31 Vestas brand wind turbines, the stringing of a 150kV, 39.6 km transmission line, building substations, civil works, access roads, and other infrastructure needed to move the energy generated to the grid of Uruguay’s state-owned energy company (Usinas y Trasmisiones Eléctricas – UTE).
“The structure of the loan approved by the IIC has provided us with ample flexibility in terms of financing the project and efficiently supplements our wind farms’ long-term debt,” noted Bernardo Andrews, CFO of Grupo Corporación América.
“This project will help diversify Uruguay’s energy matrix—consisting primarily of hydroelectric (60%) and thermoelectric (38%) power generation—and thus mitigate the risk of the Uruguayan electric sector to hydrological conditions and reduce annual CO2 emissions by 259,000 tons by substituting fossil fuel with a renewable energy source, added Santiago Cat, the IIC’s investment officer in charge of the operation. “In addition, the project will provide some 160 jobs during the project construction phase.”
Fingano S.A. and Vengano S.A. were created to develop this new wind farm. A full 50% of the IIC’s subordinated A loan will be acquired by the China-IIC SME Equity Investment Fund.
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. 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 2012, the IIC approved more than 70 operations totaling some US$400 million. Since its inception in 1989, the IIC has approved approximately 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: Santiago Cat
Telephone: +598 (2) 915-3696 in Montevideo, Uruguay