Basic Energy II

completed

Consorcio Energetico Punta Cana Macao (CEPM), an existing IFC client, and its wholly-owned subsidiary, Compania Electricidad Bayahibe (CEB), are off-grid, vertically integrated utilities. They serve resort hotels and their surrounding communities along the eastern and south-eastern shores respectively in the Dominican Republic. The companies have thus far generated all of their electricity requirements from their own generation facilities. However, in order to meet accelerated growth in peak demand, the companies plan to interconnect to a power plant of their sister company, EGE Haina, to benefit from its more cost-competitive electricity. EGE Haina is the largest generator in the country, which is majority owned and controlled by the sponsors of CEPM.The proposed IFC investment, a corporate loan of $20 million to CEPM and CEB, will finance part of the construction of a 129 km transmission line with 100MW capacity, including three sub-stations. The transmission line will be off-grid and dedicated to transfer electricity from the EGE Haina power plant in San Pedro Macoris through CEB in Bayahibe to CEPM in Punta Cana. Total project costs are estimated at $35 million. ELECNOR of Spain will construct the transmission line, while ABB from Switzerland will be responsible for the substations. The construction period is expected to be 18 months. CEPM has secured approvals for the project from CDEEE, the state-owned electricity utility. The borrowers will purchase electricity from the EGE Haina under a power purchase agreement.