Two Peru wind projects receive $67m loan from IDB

28 September 2014 (Last Updated September 28th, 2014 18:30)

The Inter-American Development Bank (IDB) will provide long-term loans worth a combined $67.3m to two wind farms located south of Lima, Peru.

The Inter-American Development Bank (IDB) will provide long-term loans worth a combined $67.3m to two wind farms located south of Lima, Peru.

The IDB will offer a loan of $23.2m to the 32MW Marcona wind farm and $44.1m to the 97MW Tres Hermanas facility, which are the first commercial-scale wind power projects in Peru.

The wind farms are expected to reduce annual carbon emissions of 440,000t.

Together the plants will supply power to meet the requirements of an estimated 500,000 households.

While construction on the Marcona farm and related facilities was completed in March this year, work on the Tres Hermanas facility commenced in July and is scheduled to be completed in September 2015.

"The IDB's financing of these two projects will send a strong signal to potential investors in Peru's wind market."

IDB Structured and Corporate Finance Department's Infrastructure Division chief Jean-Marc Aboussouan said: "The IDB's financing of these two projects will send a strong signal to potential investors in Peru's wind market.

"Wind offers a complement to thermal and hydroelectric sources, which today account for 97% of the country's energy matrix, and will serve as a seasonal complement to hydro in particular."

IDB support is also expected to include subordinated debt funding from the Canadian Climate Fund for the private sector.

US Export-Import Bank recently announced a total of $65m in loans for the two projects, which are located in the Nazca department, south of Lima.

Recently, ContourGlobal began operating the two wind farms with a combined installed capacity of 114MW in Peru.

The country aims to diversify its energy sources in order to cut down its dependency on thermal and hydroelectric plants, which currently contribute approximately 97% of the power requirements.

Energy