Company name

Fideicomiso Financiero Línea de Transmisión Tacuarembó Salto

Project number

12220-01

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

Uruguay

Sector

Energy

Status

Approved

Disclosed date

11/08/2019

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

Projected board date
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12/10/2019

Approval date

09/22/2020

Signed date

09/21/2021

Sponsoring entity

Administración Nacional de Usinas y Transmisiones Eléctricas (UTE)

Team leader

Matas Trillo, Rafael

Investment type

Financing requested

N/A

Syndicated amount

USD $ 50,000,000

Financing amount

USD $ 114,069,000

Currency

USD

Project scope and objective

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).

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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. Any gaps with respect to the IDB Invest Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) provided below.

ENVIRONMENTAL AND SOCIAL REVIEW

41.7 Kb

Client files

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

INFORME DE AVANCE DE ESIA VF.DOCX.PDF

13.1 Mb

PLAN DE MANEJO AMBIENTAL UTE.PDF

1.5 Mb

ESAP - TAC SALTO ENG.PDF

132.6 Kb

TACUAREMBO SALTO PUBLIC DISCLOSURE. ENG.PDF

257.2 Kb

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Contact information

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Alternatively, you may also use the following contact information:

Client Contact

CONTACT NAME

Jonathan Crokker; Republica Afisa

POSITION

Business Manager

PHONE NUMBER

+ 59 8 2916 6760

EMAIL

Jonathan.Crokker@fideicomiso.com.uy

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