Washington D.C., July 3, 2002—The International
Finance Corporation (IFC), the private sector development arm of the World
Bank Group, will provide US$18 million to the electric company Interconexion
Electrica ISA Peru, to support the development and expansion of Peru’s
national electric transmission network.
IFC’s long-term financing will support the construction and operation
of two transmission lines in central Peru that will help improve the grid’s
stability and overall reliability of the country’s transmission network.
The new lines will connect the municipality of Pucallpa, Peru’s
most important town in the Amazon region with a population of about 240,000
people, to the country's national transmission network.
Interconexion Electrica ISA Peru, S.A. is a subsidiary of the Colombian-based
company Interconexion Electrica S.A. (ISA), which is Colombia’s national
transmission company. ISA was awarded a 32-year concession to build and
operate the transmission lines in Peru, and to develop this project, ISA
is operating through its subsidiary ISA Peru.
Javier Gutierrez, ISA’s Chief Executive Officer, said: “IFC’s investment
is an important step in helping ISA accomplish its goal of integrating
the Andean electricity markets with transmission interconnections from
Venezuela to Bolivia.”
”IFC’s investment in ISA Perú will finance the construction of two critical
links in Perú’s transmission network, and thus will contribute to the
continued strengthening of the country’s electricity system,” said Francisco
Tourreilles, Director of the Power Department of IFC. “IFC welcomes
the opportunity of working in this project with Interconexión Eléctrica
S.A., a Colombian company with long experience in the transmission business
that is increasingly active in the Andean electricity market,” he added.
IFC’s mission (www.ifc.org) is to promote sustainable private sector investment
in developing countries, helping to reduce poverty and improve people’s
lives. IFC finances private sector investments in the developing
world, mobilizes capital in the international financial markets, and provides
technical assistance and advice to governments and businesses.
Since its founding in 1956, IFC has committed more than $31 billion of
its own funds and arranged $20 billion in syndications for 2,636 companies
in 140 developing countries. IFC’s committed portfolio at the end
of FY01 was $14.3 billion.