German-based financial services company Kreditanstalt für Wiederaufbau (KfW) IPEX-Bank has agreed to provide financing for four power grid projects in Chile.
Under the agreement, KfW IPEX-Bank will provide $120m to power grid operator Transelec Concesiones.
Additionally, credit agency Export Development Canada (EDC) and Japanese bank MUFG are providing around $240m for this project.
The additional debt capital increases the total investment for the power grid projects in Chile to nearly $435m.
With this financing, Transelec Concesiones intends to build two new substations, Nueva Charrúa and Nueva Porto Montt.
The project also includes the construction of new transmission lines, as well as the expansion of two complementary transmission lines including the substations Los Changos 1 and Los Changos 2.
German conglomerate company Siemens is supplying the main construction and operating components. By financing the projects, KfW IPEX-Bank supports the export of European technology and know-how.
In addition to Siemens, the Spanish company Abengoa and the French construction firm Engie are each party to one of the projects.
Last July, German state-owned bank KfW partnered with Belgium-based transmission system operator (TSO) Elia to acquire the remaining 20% stake in Eurogrid International.
Eurogrid, held by Australian investment management company IFM, is the holding company of Germany-based TSO 50Hertz Transmission, which is one of four electricity TSOs in the country.