Drought Events’ Impact Mitigating Investment Project Financing

closed

The Drought Events’ Impact Mitigating Investment Project Financing of Uruguay has an objective of the proposed operation is to enhance the GoU’s efforts to mitigate the effect of adverse weather conditions on its public sector accounts and to enhance the efficiency of its risk management framework used to mitigate these risks. The operation has one component: Mitigation of the effects of adverse weather conditions by enhancing FEE’s ability to cushion the impact on public sector accounts. This consists of provision of contingent financing to CND that will on-lend the proceeds to the FEE through the trustee CONAFIN AFISA to capitalize the FEE to mitigate the effects of adverse weather conditions when disbursement conditions have been met. This project will contribute to reducing the probability of Government having to transfer resources to UTE and the amount of these additional transfers needed by UTE to face drought related unexpected costs of electricity generation.