Parque Arauco Wind Projects

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Project Number: 
Project Number: 12133-01
Expected Consideration Date by the Board: 
Date Posted: 
Vientos de Arauco Renovables SAU and Arauco Renovables SAU
Sponsoring Entity: 
Parque Eólico Arauco S.A.P.E.M.
Financing Requested: 
Up to US$50 million
Environmental and Social Category: 
La Rioja Province
Scope Objective: 

The Inter-American Investment Corporation (IIC) is considering providing a loan to support the construction of (a) Phases 1 and 2 of the Arauco Wind Project II (Central Arauco II – phases 1 and 2), a wind farm of approximately 99.75 MW of installed capacity (99.75 MW) under the Special Purpose Company Vientos de Arauco Renovables SAU, (b) Phases 3 and 4 of the Arauco Wind Project II (Central Arauco II phases 3 and 4) , a wind farm of approximately 95 MW of installed capacity under the Special Purpose Company Arauco Renovables SAU (both plants to be located in the same location as the existing plants) and (c) an 83 kilometer, 132 kV high voltage transmission line to connect the Arauco Wind Project II plants to the 500 kV distribution transforming station (La Rioja Sur- operated by Transnoa) that connects with the national grid (the “Project”).
The Project will sell electricity to CAMMESA under two 20-year power purchase agreements (the “PPAs” and each a “PPA”) awarded under the RenovAr Program, as further described below. The PPA for Phases 1 and 2 was won by the Sponsor at a price of US$ 67.19/MWh under RenovAr Round 1.0 and the PPA for Phases 3 and 4 was won by the Sponsor at a price of US$56.67/MWh under RenovAr Round 1.5. The Project is expected to start production by 2019. The financing will consist of an A Loan for up to US$50M from the IDB Group and the balance from other co-lenders, like CESCE.


Environmental Review: 

The Project has been preliminarily classified as Category B (Medium Risk) according to the IIC’s Environmental and Social Sustainability Policy. The project categorization will be confirmed based on the results of the environmental and social due diligence, when more information is available.
The Project prepared an Environmental Impact Assessment (EIA) study for the wind farm and other EIA study for the transmission lines and auxiliary facilities. Both EIA studies have been approved by the corresponding environmental authorities.
Land acquisition and easement rights documentation, together with other authorizations and permits, will be reviewed during the environmental and social due diligence (ESDD).
The risks associated with the construction stage of the Project are mostly localized and can be managed with readily available best practices and mitigation measures. Examples of such impacts are potential social impacts caused by transportation of electro mechanicals components by truck from a port to the project site; potential soil and water contamination caused by inappropriate solid and liquid wastes management and pluvial erosion of soil caused by inadequate erosion management.
The main risks at the operation stage are those associated with noise, shadow flicker collision of birds and bats with blades of wind generators.
IIC has engaged the support of specialized consultants for the Environmental and Social Due Diligence (ESDD) to ensure the Project meets the requirements of the IIC Environmental and Social Sustainability Policy, consider possible cumulative impacts, confirm the project categorization, determine the need of further studies (such as additional bird and bat monitoring), evaluate consultation and disclosure efforts, assess management capacity and management systems to mitigate E&S risks and prepare an environmental and social action plan (ESAP) to address identified gaps. The ESAP will include E&S requirements for contractors, stakeholder engagement plans and management and supervision capacity from the owner. An Environmental and Social Review Summary (ESRS) and the ESAP will be posted on the IIC’s website once the due diligence process is concluded.

Contact Information: 

For inquiries about the Project, contact: Envision Energy
Client Contact name: Fernando Carbel
Email address: