Chaglla Hydro Power Plant

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In December 2009, the Brazilian company Odebrecht was awarded the contract to build and operate the 406-MW Chaglla Hydro Power Plant located at Huanuco and Pachitea. The sponsor created the special purpose company Empresa Generacion Huallaga S.A. to lead the project. A 15-year PPA contract was signed with Electroperu. Six companies took part in the competitive bidding process, of which three were awarded the right to build power plants: Consorcio Generadora Pucara, Empresa de Generación Huallaga and Cerro del Aguila (the names of the other companies were not available). The bidding criteria was the lowest tariff. The investment was estimanted at US$ 1.2 billion. Financial closure was achieved in July 2013. The project financing raised a total of US$ 774 million in senior secured debt commitments, led by two anchor agency lenders: Banco Nacional de Desenvolvimento Econômico e Social – BNDES from Brazil and the Inter-American Development Bank (IADB). BNDES and IADB made a direct loan of US$150 million. There were six other banks involved in the lending, including BNP Paribas, Sumitomo Mitsui Banking Corporation (SMBC) and Cofide (the Peruvian development bank). The project applied for carbon credits in May 2013. As of June 2014, 72% of the constructions works were concluded.