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IFC’s $50 Million Financing to Help Expand Gas Connections in Peru


In Washington, D.C.:
Adriana Gomez, IFC
Phone: + 1 202 458 5204
E-mail:
Agomez@ifc.org
 
In Lima:

Fernando Deustua, Calidda
Phone: +511 611 7500

E-mail:
Fernando.Deustua@calidda.com.pe


Lima, Peru, April 22, 2010—IFC, a member of the World Bank Group, is providing $50 million in long-term financing to Cálidda that will help provide gas connections to more than 45,000 Peruvian households in the next two years. IFC’s role was also critical in the transaction, mobilizing an additional $35 million in financing from the Infrastructure Crisis Facility ICF Debt Pool LLP.  

IFC’s financing is part of a $135 million package which also involves the Andean Development Corporation.  The funding will help Cálidda, the company in charge of gas distribution in Lima and Callao, expand capacity of its distribution network from 255 million cubic feet to 420 million cubic feet a day. This funding will support implementation of Cálidda’s $200 million investment plan for the next four years.


“This financing is designed to provide natural gas connections to more than 500 industries 160,000 cars and over 108,000 households in Lima and Callao will be connected to natural gas by 2013, generating more than $900 million savings in fuel a year,” said Ernesto Córdova, General Manager of Cálidda.


Bernard Sheahan, IFC Director for Infrastructure, said, “This investment shows IFC’s commitment to promoting the use of natural gas in Peru, bringing the benefits of cleaner and cheaper fuel to diverse industries, households, and the automotive sector.”  


The Infrastructure Crisis Facility is a joint initiative by IFC, KFW, and Proparco.  It is designed to support private and public-private partnership infrastructure development throughout emerging markets and developing countries.  The facility pools funds from member governments for cofinancing of infrastructure projects with a number of international financial institutions on a matching basis.


IFC’s strategy in Peru addresses private sector challenges, with a focus on fostering sustainable development. Key sectors include infrastructure, financial, microfinance, agribusiness, and tourism.  IFC also provides added value to clients in extractive industries, helping raise social and environmental standards and increase impact in local communities.  Since Peru became member of IFC in 1956, IFC has invested $1.8 billion in the country’s private sector.


About IFC

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 private capital, 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.

About Cálidda

Cálidda manages the natural gas distribution services in the Department of Lima and the Constitutional Province of Callao, operating under a grant provided by the Peruvian government for a renewable period of 33 years. Cálidda’s shareholders are AEI, owner and operator of essential infrastructure in emerging markets, and Promigas, an energy assets pioneer in transport and natural gas distribution in Colombia.  For more information, visit
www.calidda.com.pe.