Peruvian Rural Electrification Project

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The project entails the financing, construction and operation of a rural electrification facilities consisting of solar panels, batteries and light bulbs in three off-grid areas in south, central and northern Peru. Ergon Peru is the project company undertaking the project on behalf of the Italian developer Tozzi Green. Ergon Perù was awarded the investment contract in 2015 following an invitation to tender issued by the Supervisory Agency for Investment in Energy and Mining (OSINERGMIN). Operation and maintenance are expected to be transferred to these distribution companies at the end of the 15 years in 2031. A total of 173,000 solar kits of 120Wp capacity each will be used. Total investment is estimated at $181 million. Tozzi Green will contribute $39 million while the remaining cost will be covered by a term loan provided by Peruvian development bank Cofide (Corporación Financiera de Desarrollo) and Sumitomo Mitsui Banking Corporation (SMBC). Cofide and SMBC have each underwritten 50% ($71 million) of the line of credit. The tenor is for 13 years. Financial closure was achieved in April 2018. Project is expected to be completed by mid-2019. https://ijglobal.com/data/transaction/41344/peruvian-rural-electrification-project https://www.compelo.com/energy/news/179609/