IFC to Help La Confluencia Meet Energy Needs in Chile
IFC, a member of the World Bank Group has signed an agreement to support the construction of Chile’s La Confluencia hydropower project to help meet the country’s increasing energy needs. This project will provide clean, renewable power and help lower energy prices.
La Confluencia is a 158 megawatt run-of-river hydroelectric power plant to be built in the Tinguiririca valley, about 150 km south of Santiago. It is upstream of the IFC-financed La Higuera hydropower plant project, which is under construction by the same sponsors. As the project’s water inflows are determined primarily by melting snow, La Confluencia is expected to dispatch at full load during the dry season when water levels in the system are below average.
The project is being developed by a 50/50 consortium comprising Australia’s Pacific Hydro Pty Ltd (Pacific Hydro) and Statkraft Norfund Power Invest AS (SNPI) of Norway. IFC’s $208 million financing package will consist of an $83 million loan for IFC’s own account and a $125 million loan for the account of participating banks, including DnB NOR Bank, HSH Nordbank, Nordea Bank, Banco Santander, and SEB.
Rashad Kaldany, IFC Director for Infrastructure, said, “Using indigenous renewable resources, La Confluencia will help Chile meet a growing demand for power and improve the country’s energy security. The project will also help reduce carbon emissions that are associated with power generation. We are happy to continue building our partnership with Pacific Hydro and Statkraft Norfund Power Invest.”
Atul Mehta, IFC Director for Latin America and the Caribbean, noted, “This project supports the government of Chile’s goal of increasing energy supply and, more specifically, renewable energy. This is a high development impact project in a key sector of the country’s economy, and IFC is very pleased to be supporting it.”
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