IIC Approves US$12 Million Loan to Promote Development and Supply Clean Energy in Peru
Financing for a hydroelectric plant will help meet growing demand for electricity, reduce costs, and contribute to mitigating climate change
Washington, D.C., June 2, 2014—The Inter-American Investment Corporation (IIC) approved a loan of up to US$12 million to Peruvian company Huaura Power Group S.A. to finance the construction and operation of the C.H. Yarucaya run-of-the-river hydroelectric power plant. The hydroelectric plant, located on the Huaura River in Sayán District, approximately 135 km north of Lima, will have an installed generation capacity of 17.4 MW and is designed to generate approximately 130.7 GWh of clean energy per year.
The IIC also approved a technical assistance to study the technical, commercial, and financial feasibility of the project. An expert consultant was retained to provide an opinion on a variety of aspects of the project. The technical assistance enabled the IIC to move forward with the loan approval process and to contribute to strengthen the project.
“With the Yarucaya hydroelectric plant coming online, our group changes its role of investor in the power sector to one of developer of power generation projects. This is the start of a series of new renewable energy projects that will have a low environmental and social impact, low installation cost, and high importance for a power system that is ever more dependent on natural gas,” said Alfonso Bustamante, general manager of Huaura Power Group S.A. “Also, with C.H. Yarucaya, we’re looking to set an example of reliable and clean hydroelectric power that, despite its smaller size, contributes to the national power grid with decentralized electricity and with minimal changes in the amount of power offered between wet months and dry months.”
“With this operation, the IIC will be supporting the development of small-scale hydroelectric projects in Peru by providing long-term financing,” said Olga Lucía De Narváez, the IIC lead investment officer in charge of the operation. “This hydroelectric project will also be a source of low-cost clean energy that will help meet growing demand.”
Huaura Power Group S.A. is a corporation established in Peru to develop, build, and operate the Yarucaya hydroelectric plant and to build a transmission line approximately 20.5 km long. The Yarucaya hydroelectric plant is expected to begin commercial operations as from December 31, 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 US$3.7 billion has been mobilized through cofinancing and syndication agreements. For additional information on the IIC’s activities, visit www.iic.org.
Contact: Olga Lucía De Narváez
Telephone: +(571) 325-7052 in Bogotá, Colombia