The project consists of the design, construction, operation and maintenance of a 350 km transmission line in 500 kV; the construction of a substation in Chamberlain; the reinforcement of the Salto substation; and the provision of auxiliary services allowing the interconnection of the substations in the departments of Tacuarembó and Salto, enabling the closure of the transmission ring in northern Uruguay (the "Project"). The Project has a construction period of 42 months.
The Borrower is the "Fideicomiso Financiero Línea de Transmisión Tacuarembó Salto" (Tacuarembó Salto Transmission Line Financial Trust) which will be established as a trustee under the laws of Uruguay. The Borrower will issue Certificates of Participation (“COPS”), of which UTE (the “Sponsor”) will have 20% and the remaining 80% will be owned by institutional and individual investors through an Initial Public Offer that will take place before the first disbursement. From its beginning until the public offer, UTE will have 100% of the shares. The total cost of the project is estimated at US$ 285.2 million, which is projected to be financed through a long-term A loan of US $ 114 million from the IDB Group, a B loan of US $ 114 million, and Sponsor capital contributions for 20% of total project costs (approximately US $ 57 million).
The objectives of the Project are: (i) ensure the current and future reliability of the national electricity system in Uruguay, and (ii) support the integration of greater renewable energy production through the expansion of the electricity grid. The Project, which represents approximately 6.6% of the current total high voltage transmission network and 32% of the 500kV system, has been certified as a green transmission line (IDB Invest GTL Certificate).