Washington D.C., October 26, 2007 —
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.”
IFC, a member of the World Bank Group, fosters sustainable economic growth
in developing countries by financing private sector investment, mobilizing
private capital in local and international financial markets, and providing
advisory and risk mitigation services to businesses and governments. IFC’s
vision is that poor people have the opportunity to escape poverty and improve
their lives. In FY07, IFC committed $8.2 billion and mobilized an additional
$3.9 billion through loan participations and structured finance for 299
investments in 69 developing countries. IFC also provided advisory services
in 97 countries. For more information, visit www.ifc.org.
About the Sponsors
Pacific Hydro is an Australian renewable energy company that was founded
in 1992. Since that time, Pacific Hydro has developed an extensive range
of hydro and wind projects in Australia and around the world. Pacific Hydro
has a policy of not building new dams, ensuring all hydro projects have
made use of either existing irrigation dams or run-of-water flows.
SNPI was established in 2002 as a joint venture between Statkraft SF and
the Norwegian Investment Fund for Developing Countries. Its objective is
to develop, own, and operate environmentally friendly hydropower assets
that contribute to economic growth and sustainable development in emerging