Itelecom Efficiency Lighting Phase 2 (“The Project” or “Itelecom”) consists of the installation, operation and maintenance of public LED lighting systems in different municipalities of Chile. Through competitive public bidding processes carried out by preselected municipalities Itelecom will seek the award of long-term contracts for the installation and maintenance of luminaires. These contracts include the purchase and installation of luminaires, as well as the maintenance of public lighting systems. Energy efficiency projects with LED technology will reduce energy consumption and, therefore, lighting costs, providing monetary savings to municipalities. The savings during the life of the projects will allow the municipalities to cover the payment obligations under the contracts. IDB Invest will participate in the transaction through a 9-year senior loan for US$ 9.0 million, and a 9-year subordinated loan for US$ 7.5 million. This transaction reproduces the innovative model of the first operation with Itelecom and collects the lessons learned of how private financing for the operation of efficient public lighting systems can complement publicly funded programs in different municipalities, including Melipilla, Cartagena, San Javier, Villa Alemana, Til Til, Negrete, San Joaquin and Recoleta.