Company name

Engie Energía Chile S.A.

Project number

12995-01

Category B projects have potential environmental and/or social impacts and risks that are less adverse than those of a Category A and which are generally limited to the project site, largely reversible and can be mitigated via measures that are readily available and feasible to implement in the context of the operation.

E&S category
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B

Country

Chile

Sector

Energy

Status

In implementation

Disclosed date

04/24/2020

Projected date at which a project will be put forward for the Board of Executive Directors’ approval.

Projected board date
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05/26/2020

Approval date

05/29/2020

Signed date

12/23/2020

Sponsoring entity

N/A

Team leader

Valdes Florenzano, Claudia Andrea

Investment type

Syndicated amount

USD $ 51,000,000

Financing amount

USD $ 74,000,000

Currency

USD

Project scope and objective

The project aims to support Engie Energía Chile (“EECL” or the “Company”) in the construction and operation of the Wind Calama (the “Project”), a wind project with an installed capacity of 151.2 megawatts (“MW”), to be located near the city of Calama in the Antofagasta Region, Chile. The energy produced will replace the anticipated decommissioning of units U14 and U15 of EECL, each with a capacity of 125 MW that are part of the Tocopilla Thermoelectric Plant (“TTP”). The estimated cost of the Project is US$152.9 million. IDB Invest will participate in the transaction through a senior loan of up to 12 years, for an amount of US$110.0 million. In parallel, IDB Invest will mobilize resources of the Clean Technology fund (“CTF”) for up to US$15.0 million, to complement the Project’s financing.

The main objective of this operation is to deploy a pilot financial instrument that supports decarbonization activities in Chile, by monetizing a clean technology project’s actual displacement of CO2 emissions of existing fossil fuel fired power assets. In the absence of a carbon credits market, the financing structure will establish a minimum price for the emissions through a lower financing cost in the CTF loan. Methodology of this mechanism is being developed alongside a technical consultant, so that it can be replicated in other projects in Chile and in Latin America and the Caribbean, with the broader objective to foster the development of a carbon credits market.

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Environmental and social review

IDB Invest conducts an environmental and social due diligence (ESDD) commensurate with the nature, scale, and stage of the project, and with its level of environmental and social risks and impacts. The ESDD will confirm the project E&S categorization and assess the project with respect to the client requirements in IDB Invest Environmental and Social Sustainability Policy. The results of the ESDD, including any identified gaps are described in the Environmental and Social Review Summary (ESRS) provided below. For projects approved as of 2016, any gaps with respect to IDB Invest's Environmental and Social Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) presented below, to comply with the date mentioned above.

ENVIRONMENTAL AND SOCIAL REVIEW

95.6 Kb

Client files

This section provides the key environmental and social assessment documents produced by the client for this project.

ENVIRONMENTAL AND SOCIAL REVIEW SUMMARY (ESRS) & ESAP - ENGIE (CHILE) 0.PDF

340.8 Kb

DECLARACION DE IMPACTO AMBIENTAL - PARQUE EOLICO CALAMA.PDF

6.3 Mb

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Contact information

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Request information

Alternatively, you may also use the following contact information:

Client Contact

CONTACT NAME

Bernardita Infante

POSITION

Head Corporate Finance

PHONE NUMBER

+562 2353 3205

EMAIL

Bernardita.infante@engie.com

IDB Invest Contact

EMAIL

requestinformation@idbinvest.org

PHONE

+1(202)-566-4566

ADDRESS

1350 New York Ave NW, Washington, DC 20005

COUNTRY OFFICES

IDB Invest Country Offices