Latin bank finances 406-MW Chaglla in Peru

HUANUCO, Peru 12/7/11 (PennWell) -- The Inter-American Development Bank (IADB) has approved a US$150 million loan to help finance construction of the 406-MW Chaglla hydroelectric project on Peru's Huallaga River.

IADB said December 1 its non-sovereign guaranteed loan is to be coupled with a syndicated loan from international commercial banks for a total loan of about US$400 million for the total US$1.2 billion project. Additionally, it is expected that Brazil's national development bank, Banco Nacional de Desenvolvimento Economico e Social (BNDES), will participate in the long-term debt package with a parallel loan of US$323 million.

IADB granted the loan to Empresa de Generacion Huallaga SA, a subsidiary of Odebrecht Energia SA, a unit of Brazil's Odebrecht Group. Peru's energy and mines ministry signed a definitive concession contract with Empresa de Generacion Huallaga to build the plant. Commissioning is scheduled for January 2016.

IADB said Odebrecht is to implement a professional training program related to civil construction for local communities in Huanuco Department. The program is intended to give employment priority to local communities by offering worker qualification programs in areas related to civil construction, including carpenters, electricians, masons, welders, and others.

The IADB loan also is to help finance construction of related infrastructure including a transmission line connecting to the national grid, access roads, and other ancillary facilities.

Alstom received a US$108 million contract in September to supply the complete electro-mechanical package for the project, which includes a powerhouse with two vertical Francis turbines of 225 MW each, generators, and electrical and mechanical auxiliary systems.The contract includes transformers and switchyard equipment provided by Alstom Grid, hydro-mechanical equipment, digital control system, telecom and plant protection, and a small hydro plant.

The second largest hydro project in Peru, Chaglla is to produce 2,545 GWh annually, representing about 15 per cent of the projected national electricity demand for 2016. The project also is expected to offset 467,000 metric tons of carbon dioxide emitted by other generation.

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