• The deal allows Cálidda to finance its expansion program and expand its service to more than 180,000 new users.
• IDB Invest’s financing supports companies facing the challenges caused by the COVID-19 emergency.
IDB Invest, a member of the IDB Group, provided a $100 million loan to Gas Natural de Lima y Callao S.A. (Cálidda) for the expansion of its natural gas distribution network, with which it will expand the service to more than 180,000 new users during 2020 and 2021.
The project will expand the natural gas network in urban areas of the Department of Lima and the Constitutional Province of Callao, improving access to basic energy services and benefiting residential, commercial and industrial users. More than half of the new users will be low-income households. Cálidda plays an important role in improving service, as it is the exclusive distributor of natural gas for the most populated region of the country, which covers more than 10 million people and accounts for 36 percent of the population of Peru.
The operation incorporates technical advice from IDB Invest, which will improve Cálidda's gender equality policies regarding its workforce. Through the Women's Empowerment Principles (WEP) tool, a diagnosis and an action plan on diversity and gender inclusion will be carried out, which will include training for management and human resources teams, and guidance so that the company can adhere to certifications international standards on gender equality.
The IDB Invest loan highlights the institution's role in supporting companies due to the COVID-19 emergency, granting financing with a term of eight years that is consistent with the maturity period of the investments. The impact of COVID-19 in the country has caused less availability of long-term financing, necessary for investments such as the expansion of the Cálidda network. IDB Invest supports the reactivation of the country, in the context of the health emergency, through a key sector for the well-being of citizens and the growth of the productive sector.
The natural gas sector currently generates 38 percent of Peru's electricity and is progressively increasing its use as fuel for industries, vehicles and homes. It has a lower cost than alternative fuels, thus generating savings for users, and it is a reliable source of energy in the long term. In addition, the development of this energy source contributes to the Peruvian Government's commitment to reduce greenhouse gas emissions by 30 percent by 2030.
The operation potentially contributes to two of the United Nations Sustainable Development Goals: Decent work and economic growth (SDG 8) and Industry, innovation and infrastructure (SDG 9).
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of US $ 12,088 million in assets under management and 333 clients in 24 countries, IDB Invest provides innovative financial solutions and advisory services that respond to the needs of its clients in a variety of sectors.
About Gas Natural de Lima y Callao S.A.
Cálidda belongs to Grupo Energía Bogotá and Promigas, two leading multilatinas in the energy sector. The company has been in Peru for 16 years and has a concession from the Peruvian State for the construction of natural gas networks and distribution in the department of Lima and the Constitutional Province of Callao. To date, it has invested US $ 1,114 million in the construction and fitting out of 12,000 kilometers of networks, benefiting more than 4 million people with access to natural gas, 70% of whom belong to vulnerable sectors. Likewise, Cálidda has connected around 12,000 businesses and 650 industries, and 38 percent of the country's electricity is generated today from natural gas, thus contributing to the change in Peru's energy matrix. Finally, Cálidda has a firm commitment to improving air quality and to date its management has avoided the emission of 88 million tons of CO2 into the environment.