Hidronihuil S.A.

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Hidronihuil was awarded a 16-year contract to build and operate a hydroelectric power plant on the Atuel River. This is the fourth hydro power plant to be constructed on this river (the other three plants have been operated by Los Nihuiles S.A. The 30 MW power plant will supply electricity to Energia Mendoza Sociedad del Estado (EMSE), the state-owned electricity company of the Mendoza Province. The payment will be based on the electricity generation; however, a minimum monthly payments is guaranteed in case of unavailability of water or no electricity purchase by EMSE. Hidronihuil is owned by Cartellone (75%) and Federacion Electrica de Nuevo Cuyo (25%). Financial closure was achieved in mid-1997, with a loan package approved by the IAIC: US$ 10 million direct loan and US$ 10 million syndicated loan (Dresdner Bank). The remaining costs of the US$ 35.7 million project will be financed with the sponsors' equity investment (US$ 9.8 million), suppliers credits (US$ 3.9 million) and a commercial bank loan (US$ 2 million). None None