IDB Invest finances the Achiras wind farm in Argentina

IDB Invest finances the Achiras wind farm in Argentina

IDB Invest, the private sector institution of the IDB Group, finances the construction, operation, and maintenance of the Achiras 48 MW wind farm located in the southeast region of the province of Córdoba, in Argentina. The project includes a transmission line of 14 kilometers and is developed by the company Central Puerto, S.A.

The financing consists of a $20 million IDB Invest loan and the mobilization of $10 million from the Canadian Climate Fund for the Private Sector of the Americas (C2F), managed by IDB Invest. The financial package also includes co-financing of $20.7 million from the International Finance Corporation (IFC). On April 9, 2018, the full disbursement of the loans from IDB Invest and IFC was made for the project.

The tenor of up to 15 years makes the project financially viable as this period is not available in local capital markets.

The objective of the operation is to contribute to the diversification of Argentina’s energy matrix and to the sustainability of its power generation capacity. In addition, the Achiras wind farm will displace the equivalent of 2,047 million tons of carbon dioxide in the next 20 years. With the mobilization of capital, the project also increases private participation in the Argentine energy sector.

The intervention of the C2F Fund includes incentives for the project to incorporate an internship program for women. The wind farm will integrate female workforce in disciplines related to science, technology, engineering and mathematics, both at the corporate level and in the execution of the project. Also, through IDB Invest, the parties involved agree to increase their commitment to implement best practices in environmental and social matters.

Original source: IDB
Published on 20 April 2018