Providencia Solar Power Plant

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The Providencia Solar S.A. DE C.V, an El Salvadorian partnership of the French company Neoen S.A.S and the Salvadoran company Almaval S.A. de C.V, announced the development of the Providencia Solar photovoltaic (PV) power plant located in Zacatecoluca (La Paz Department), El Salvador (60MW in capacity). In July 2014, the sponsors signed a 20-year power purchase agreement with the power distribution company of El Salvador (Superintendencia General de Electricidad y Telecomunicaciones - SIGET). The Providencia Solar S.A. DE C.V outrun 32 other competing bids in a public tender process organized by DelSur by offering the lowest electricity tariff of $101.9/MWh. The investment was estimated at US$ 144.2 million. In December 2015, the Inter-American Development Bank (IDB) approved a US$ 57.7 million loan from its ordinary capital and $30 million from the IDB-administered Canadian Climate Fund to partially finance the construction and operation of the project. Proparco also provided a US$ 30 million loan to the project.