IDB Invest finances La Castellana wind project to diversify Argentina's energy matrix
IDB Invest, a member of the Inter-American Development Bank (IDB) Group, has signed a $36 million loan with Central Puerto S.A. (CPSA) for the La Castellana wind project in Argentina. This is the first loan structured under the project finance modality of infrastructure and energy projects carried out in Argentina in the last decade. The project consists of the construction, operation and maintenance of a 99 MW wind farm and its associated facilities, including a 132 kV and 37 km long transmission line in the south of the province of Buenos Aires. The objective of the project is to contribute to the diversification of Argentina's energy matrix, which is dependent on thermoelectric and hydroelectric generation, and the sustainability of the country's electric power generation capacity. The installed capacity of renewable energy is expected to increase by 99 MW, which will help reduce the dependence on more polluting generation sources. During the 20 years’ lifespan of the plant, 4,548,922 tons of carbon dioxide emissions will be displaced. The term of the loan is 15 years in total. The project will be co-financed with a loan of $64 million from the International Finance Corporation, and with a loan of $5 million from the Canadian Climate Fund for the Private Sector of the Americas (C2F), which also includes an incentive mechanism to promote gender equality in the sector. About IDB Invest IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting the private sector in Latin America and the Caribbean. It finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a current portfolio of $11.6 billion under management and 330 clients in 21 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients. As of November 2017, IDB Invest is the trade name of the Inter-American Investment Corporation. www.idbinvest.org About Central Puerto Central Puerto is Argentina’s largest privately-owned power generation company, operating over 3,750MW in generating capacity in Argentina’s main interconnected grid, including both thermal and hydro power generation. It has been awarded two PPAs by CAMMESA for the La Castellana and Achiras projects in Rounds 1 and 1.5 of the RenovAr auctions, respectively. For more information visit www.centralpuerto.com.