First EIB loan in Chile for renewable energy
The European Investment Bank (EIB) has granted a US$82 million loan to Eólica Monte Redondo – a subsidiary of IPR-GDF SUEZ – to finance the construction of the Laja run-of-river hydropower plant.
The plant is located 450 km south of Santiago de Chile and 70 km south east of Concepción. It will generate 34.4MW which will feed into the Central Interconnected Grid beginning in May 2012. Laja will be the first power plant in Chile whose turbines will be installed in the bed of the river, as a result of which it will not be necessary for the course of the river to be diverted. Currently the power plant has a completion status of over 60%.
The new Laja power plant will serve the growing demand for electricity through a renewable energy source. At the same time this project forms part of efforts to diversify the national power grid.
This is the first loan that has been signed in Chile since the entry into effect of the Framework Agreement signed in March 2010. This laid the foundations for EIB operations in Chile. This EIB loan comes under the "Facility for Energy Sustainability and Security of Supply".
The European Investment Bank (EIB) is the EU’s long-term financing institution promoting European objectives. Created in 1958, it operates in the 27 EU Member States and more than 130 other countries. Its lending operations outside the European Union form part of the Union’s policy of cooperation with those countries.
The EIB has been providing loans in Asia and Latin America since 1993 under three successive mandates. Under the current ALA IV mandate for the period 2007-2013 (in addition to the Facility for Energy Sustainability and Security of Supply), it is authorised to lend up to EUR 3.8 billion to finance i) operations supporting the EU’s presence in the region through direct investment and/or the transfer of technology and know-how, and ii) climate change mitigation projects. The EUR 3.8 billion breaks down into indicative amounts of EUR 2.8 billion for Latin America and EUR 1 billion for Asia.
The Facility for Energy Sustainability and Security of Supply is a EUR 4.5 billion multi-annual line for financing projects in non-EU countries that contribute to ensuring a sustainable and secure energy supply. Latin America is one of the parts of the world that can receive financing from this line.
About International Power (IPR) and GDF SUEZ
In Latin America, IPR-GDF SUEZ provides innovative energy and gas solutions in Argentina, Brazil, Chile, Costa Rica, Panama and Peru, and supports economic growth in this developing continent, respecting the environment and supplying essential services to its people.
We manage and operate a diversified energy matrix with an installed capacity of 10.7 GW and additional installed capacity of 6 GW under construction. Two thirds of the electricity we generate is renewable and we continue to make every effort to ensure that energy and the environment are sustainable sources of progress and development. In addition, we transport, distribute and sell gas, and re-gasify liquefied natural gas (LNG).
International Power is part of the GDF SUEZ Group, one of the largest and most active energy suppliers in the world throughout the energy and natural gas value chain. The Group carries out its business (energy, energy services and care for the environment) based on a model of responsible growth designed to meet energy needs, ensure security of supply, combat climate change and optimise the use of resources.