The IIC finances photovoltaic solar plant in El Salvador
Loan of US$2.7 million to finance one of the first private-sector photovoltaic solar power plants in El Salvador
Washington, D.C., November 4, 2015 — The Inter-American Investment Corporation (IIC) approved a loan of up to US$2.7 million to Parque Solar Cangrejera S.A. de C.V. to finance the development, construction, and start-up of a photovoltaic solar power plant with a capacity of 1.48 MWp in the canton of Cangrejera, department of La Libertad, El Salvador.
“Through this operation, the IIC is supporting the development of non-conventional renewable energy projects and contributing to the diversification of El Salvador’s power grid. The project will help prevent greenhouse gas emissions totaling 1,950 tons of CO2 equivalent annually and meet the electricity needs of more than 2,800 Salvadoran households per year,” said Mónica Navarrete, the IIC senior investment officer in charge of the operation.
The power generated by the solar plant will be sold through three power supply agreements, awarded through open-tender processes, entered into with the Compañía de Alumbrado Eléctrico de San Salvador S.A. de C.V. (CAESS) and Distribuidora de Electricidad Del Sur S.A. de C.V. (Del Sur).
The total cost of the project is approximately US$4.2 million. This includes the construction of a transmission line to the Melara substation.
Parque Solar Cangrejera S.A. de C.V. (“PSC”) is a Salvadoran special-purpose company established to develop a project to generate photovoltaic solar power in the canton of Cangrejera, department of Libertad, El Salvador. PSC is indirectly controlled by the Spanish company Grupo Gransolar S.L.
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 IIC provides companies with funding in the form of equity investments, loans, and guarantees, as well as technical assistance, advisory services, and innovative knowledge products. In 2014, the IIC approved 64 operations for a total amount of US$426.3 million. Since its inception, the IIC has approved more than 920 direct loan and equity investments to SMEs and financial intermediaries, for a total of US$5.6 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: Mónica Navarrete
Telephone: + (503) 2233-8901 in San Salvador, El Salvador