Washington, DC, November 22, 2017 —
IFC, a member of the World Bank Group, has closed a financial package to
support the construction of one of the first projects awarded a long-term
Power Purchase Agreement (PPA) from wholesale electricity market administrator
CAMMESA, under Round 1 of Argentina’s RenovAr program.
The 100 MW La Castellana wind project sponsored by Central Puerto S.A.,
is located west of Bahia Blanca, in the southern part of the province of
Buenos Aires. The project is expected to be operational by April
2018. Once completed, La Castellana is expected to inject approximately
450 gigawatt-hours of electricity per year into the Argentina Grid Interconnected
System (SADI), contributing towards the Government of Argentina’s target
of achieving 8% of its total generation from renewable generation by 2018.
The IFC long-term financing package includes a $37 million A Loan and a
$27 million facility from IFC’s Managed Co-Lending Portfolio Program (MCPP),
in the first project in Argentina to be financed by the MCPP. The
MCPP allows institutional investors the opportunity to passively participate
in IFC’s future loan portfolio. An additional total of $36 million
in various facilities for the project were provided by the Inter-American
Development Bank Group; while a local currency VAT facility of $19 million
equivalent was provided by Banco Galicia.
The financing marks the return of long-term international project financing
to the power sector in Argentina, given that it has not been available
since the early 2000s. This bodes well for the financing of future
RenovAr or other Public Private Participation projects in Argentina.
“The La Castellana project is expected to set a benchmark for future commercial
financial institution financings for Rounds 2.0 and 3.0 of the RenovAr
program, as a significant step in the attraction of diverse sources of
funding to the sector”, said Gabriel Goldschmidt, Senior Manager in IFC’s
Latin America and Caribbean Infrastructure and Natural Resources Department.
“The successful international financing of RenovAr program projects
will in turn provide greater confidence for international lending institutions
to participate in a variety of other infrastructure sectors in Argentina.”
“We are pleased to have partnered with IFC, the IDB Group and Banco Galicia
to achieve this project financing for Central Puerto’s first renewable
energy project in the RenovAr program,” said Fernando Bonnet, Central
Puerto’s Chief Financial Officer. “Central Puerto intends to continue
to increase its electricity generation capabilities by implementing additional
renewable energy projects, supporting the Government of Argentina’s objectives
to diversify the country’s energy generation matrix.”
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with more than 2,000 businesses worldwide, we use our capital, expertise,
and influence to create markets and opportunities in the toughest areas
of the world. In FY16, we delivered a record $19 billion in long-term financing
for developing countries, leveraging the power of the private sector to
help end poverty and boost shared prosperity. For more information, visit
About Central Puerto
Central Puerto is Argentina’s largest privately-owned power generation
company, operating over 3,750MW in generating capacity in Argentina’s
main interconnected grid, including both thermal and hydro power generation.
It has been awarded two PPAs by CAMMESA for the La Castellana and
Achiras projects in Rounds 1 and 1.5 of the RenovAr auctions, respectively.
For more information visit www.centralpuerto.com.