Orazul Energia

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The proposed investment is an equity participation in a newly created vehicle (“Orazul Energia Partners LLC”) with another newly created vehicle (“Orazul Energia Holdings LLC”) that are controlled by I Squared Capital (ISQ), which acquired the assets of Duke Energy International (DEI) in Peru, Argentina, Chile, and Ecuador (“Portfolio”). As further explained below, the Portfolio consists of over 1,600 megawatts of operating hydroelectric and thermal power plants, transmission lines and gas-processing operations.    IFC Global Infrastructure Fund, LP, an investment fund managed by IFC Asset Management Company, LLC, a wholly owned subsidiary of IFC, will invest alongside IFC. IFC’s investment proceeds will be used to acquire and develop a portfolio of renewable power projects in Latin America. Through this investment, IFC will be supporting strategic partners which have demonstrated strong operational and management capacity in the power sector.  Of the DEI assets in Latin America, the Portfolio to be acquired by the Consortium consists of DEI assets in Peru, Chile, Argentina, and Ecuador for a total of 1669 MW of which 952 MW (56%) is hydro-electric power, 280 MW (19%) is natural gas-fired power (“flexible thermal”), 222 MW (15%) is diesel-fired assets. The remaining 215 MW (12%) are not part of the operating capacity, because (i) IFC will cease to have exposure to the 163MW diesel plant in Ecuador by mid-2017 and (ii) 52 MW in Argentina are part of the FONINVENEM remuneration program in that country.  All of the thermal power assets can be operated by gas, but currently the Yungay Plant in Chile operates mostly in diesel. In addition to power generation assets, the Portfolio has a concession for the Aguaytía gas field and a gas plant in Peru, and two transmission assets comprising 730 km of regulated 220kV and 138 kV transmission lines in Peru. The list of assets, by country, is provided below:   Argentina: (i) Cerros Colorados (Planicie Banderita), 435 MW Hydroelectric plant; and (ii) Alto Valle, 88 MW gas-fired plant. Chile: (i) Duqueco, 140 MW hydroelectric complex (Peuchen Plant and Mampil Plant); and (ii) Yungay, 222 MW gas and diesel-fired plant. Ecuador: (i) Electroquil, 163 MW diesel-fired plant. Peru: (i) Cañón del Pato, 267 MW hydroelectric plant; (ii) Carhuaquero I, II and III, 95 MW hydroelectric plant; (iii) Carhuaquero IV, 10 MW hydroelectric plant; (iv) Carhuaquero V, 5MW hydroelectric plant; (v) Aguaytía, 192 MW gas-fired plant; gas field, separating processing plant, and fractionation plant producing LPG and natural gasoline.