Washington, D.C., July 13, 2010—IFC,
a member of the World Bank Group, is providing $5 million in quasi equity
to Linea Clave International S.A., a natural gas distribution company,
to help reduce the Dominican Republic’s dependence on oil-based energy
fuels, and diversify the country’s energy mix.
In 2007, Linea Clave was the first company to distribute compressed natural
gas to industrial clients in the Dominican Republic. The company began
distributing liquefied natural gas in January 2010, providing alternative
natural gas solutions to its clients. The company has established
itself as a pioneer in natural gas distribution in the country, with a
solid reputation for technical expertise and operational reliability.
IFC’s financing will help Linea Clave develop its industrial client base;
the company plans to expand its business to supply natural gas to hotel
clusters, power generation companies, and the transport sector. The investment
supports the goal of the Government of the Dominican Republic to generate
at least 50 percent of the country’s energy from natural gas by April
2011. It also helps the country foster competitiveness through cleaner
production, decreasing energy consumption and costs, and reducing greenhouse-gas
Ricardo Canalda, a major shareholder and founder of Linea Clave International,
said, “We appreciate the support we have received from IFC as we grow
our business and further develop the natural gas sector in our country.
IFC’s involvement in this project has been invaluable in dealing with
corporate governance and environmental questions.”
Vincent Gouarne, IFC Director for Latin America and the Caribbean said,
“IFC’s support to Linea Clave’s expansion marks a key step in our strategy
to support the development of the natural gas sector in the Dominican Republic,
which will bring the benefits of a cleaner and less expensive fuel to consumers.
We look forward to working with Linea Clave, a sponsor that has helped
develop the natural gas sector in the country.”
This investment in Linea Clave follows a $20 million financing package
that IFC provided to Banco BHD recently to start the Corporation’s first
energy efficiency program in the Caribbean region. Both investments are
expected to play an important role in addressing the Dominican Republic’s
energy challenges, improving competitiveness, and mitigating global climate
In the Dominican Republic, IFC is working to improve access to basic infrastructure,
reduce external vulnerability and increase access to energy by the poor.
IFC also supports climate change mitigation efforts and promotes the growth
of energy efficiency solutions.
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing capital for private enterprise, and providing advisory and risk
mitigation services to businesses and governments. Our new investments
totaled $14.5 billion in fiscal 2009, helping channel capital into developing
countries during the financial crisis. For more information, visit www.ifc.org.