Basic information
Company name
Energía del Pacífico, Ltda. de C.V.
Investment type
Loan
E&S category
A
Disclosed date
Projected board date
Approval date
Sponsoring entity
Invenergy Clean Power El Salvador, Ltda. de C.V.; Quantum
Team Leader
Gian Franco Carassale
Financial Summary
Financing amount
$ 60,000,000
Syndicated / Co-Financing Amount
$ 596,500,000
Financing Currency
USD
Client
information
Meghan Schultz
Senior Vice President, Finance & Capital Markets
Invenergy LLC
mschultz@invenergyllc.com
PROJECT
SCOPE
AND
OBJECTIVE
The project (the “Project”) involves the construction and operation of 1) a 378-megawatt (MW) thermal power plant at the port of Acajutla in the Department of Sonsonate in El Salvador (the “Power Plant”), 2) a marine terminal, consisting of a floating storage and regasification unit (the “FSRU”) permanently moored through a modified spread mooring system for liquified natural gas (LNG) delivery, storage, and regasification, as well as a natural gas pipeline that will run from the FSRU to the power plant (the “Pipeline”) and 3) the construction of a 44 km, 230 kilovolt (kV) transmission line and related substations to connect the power plant to the electrical grid of El Salvador. The Power Plant will be located in a brownfield port and industrial area in the municipality of Acajutla, in premises secured under a 24-year lease agreement with the Executive Commission of the Port of Acajutla (CEPA), who owns and manages the port. Financing from IDB Invest will be direct to Energía del Pacífico, Ltda. de C.V., who will develop the Project. The FSRU will not be part of this financing. The total Project Cost is estimated at USD 850,000,000, which will be co-financed by IDB Invest through an 18-year long-term loan of up to USD 115,000,000. IDB Invest will seek approval from China Fund for USD 50,000,000.
The Power Plant will consist of 19 Wärtsilä 18V50SG internal combustion reciprocating engines with capacity of 18.9 MW each, and a combined steam cycle system that will use the exhaust gases of the engines to produce additional 26 MW. The LNG marine import terminal consist of a Restricted Catenary Mooring (RCM) system and a dedicated and chartered FSRU located approximately 1.2 km offshore. LNG carriers will moor directly to the FSRU with flexible hoses utilized to transfer LNG. The FSRU will receive approximately six LNG shipments per year. A combination of a flexible riser and a subsea gas pipeline will transfer the re-gasified natural gas from the FSRU to the onshore power plant. The transmission line between the Electricity Transmission Company of El Salvador (ETESAL) substations of Acajutla and Ahuachapán will have approximately 139 towers and a 38-meter wide right-of-way (ROW). The Project involves the construction of a switchyard inside the project site in the port of Acajutla, (the EDP Substation), another interconnection at 115 kilovolt (kV) between that switchyard and the ETESAL Acajutla Substation and the expansion of both ETESAL substations.
The Project is expected to be the lowest cost thermal generator in El Salvador, where the country is heavily reliant on imported HFO-fired generators for its dispatched power, and to provide reliable energy, reduced carbon emissions and increased foreign investment.
Environmental
and
Social
Review
The Project has been classified as a Category A operation according to IDB Invest Environmental and Social Sustainability Policy. Key E&S impacts potentially associated with this project include air emissions, environmental noise, construction related E&S impacts, land and marine biodiversity, GHG emissions, impacts to fishers, land acquisition, security management, labor and community related impacts and health and safety risks during construction and operation. Two environmental and social impact assessments (ESIAs) have been prepared for the project by international and local consultants for the power plant, the marine terminal, and the transmission line. The power plant and marine terminal ESIA was prepared by Dillon Consulting from Canada, in association with Eco-Ingenieros from El Salvador in 2014, and amended in 2016 and 2018. The transmission line ESIA was prepared by Environmental Resources Management (ERM) from the US, in association with Capital Natural from El Salvador in 2017. IDB Invest’s appraisal will consider the environmental and social management planning process and documentation for the Project and gaps, if any, between these and E&S requirements of the Sustainability Policy. Where necessary, corrective measures, intended to close these gaps within a reasonable period of time, will be summarized in an agreed Environmental and Social Action Plan (ESAP). Through implementation of these measures, the Project is expected to be designed and operated in accordance with IDB Invest Environmental and Social Sustainability Policy and IFC Performance Standards objectives. Environmental and Social Impact Assessment documents (EIA): ESIA Environmental and Social Impact Assessment for Power Plant and Marine Terminal ESIA Environmental and Social Impact Assessment for Transmission Line ESIA Amendment to ESIA for Power Plant and Marine Terminal Resolution Environmental and Social resolution for Power Plant and Marine Terminal Resolution Environmental and Social resolution for T Line Resolution Environmental and Social resolution to the Amendment for Power Plant and Marine Terminal Contact Information For project inquiries, including environmental and social questions related to an IDB Invest transaction please contact the client (see Investment Summary tab), or IDB Invest using the email requestinformation@idbinvest.org. As a last resort, affected communities have access to the IDB Invest Independent Consultation and Investigation Mechanism by writing to mecanismo@iadb.org or MICI@iadb.org, or calling +1(202) 623-3952.
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