El Carmen and 8 de Agosto Small Hydro Power Plants

active

The Peruvian company Andean Power Generation S.A.C. (Union Group) announced the development of El Carmen (8.4 MW) and 8 de Agosto (19 MW) small hydro power plants, located in the Monzon district, Huanuco department (27.4 MW in total capacity). The special purpose company Generacion Andina SAC was created to manage the project. The sponsor was granted a 20-year power purchase agreement to sell electricity to the grid for US$ 53.9/MWh. The investment in both power plants was estimated at US$ 83.2 million. Financial closure was achieved in July 2015, when the sponsor was granted US$ 59 million in loans from DEG (US$ 49 million) and FMO (US$ 10 million). The remaining capital (US$ 29 million) expenditures were set to be financed with equity, including a US$ 3.5 million equity investment from the IIC. The construction works started in 2015 and the commercial operations were scheduled to commence in the first quarter of 2016.