TermoEmcali Power Plant

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This project is a 234-MW natural gas-fired power plant, located in Palmira. The project is owned by a mixed company in which InterGen, the lead developer, has 54%, municipality-owned Empresas Municipales de Cali (43%), and Corfi Pacifico (3%). Construction began in March 1997 and was scheduled for completion by February 1999. TermoEmcali reached financial closure in April 1997 when it became the first Colombian power project financed using the 144a mechanism. The project is not backed by a sovereign guarantee of power-purchase payments. The project total cost is about $230 million. Emcali, the local utility, will resell the power it purchases from the plant into the national grid. The purchase obligations of Emcali are guaranteed not by the national government, but buy a pledge of receivables-the first such arrangement for an international 144a deal. Construction works were completed on Jul. 1999. Early in 2000, the project company showed signs of financial difficulties by falling behind on the scheduled debt service payments. By the end of 2004, it had defaulted on its outstanding debt of US$ 165 million. In October 2005, TermoEmcali restructured its financial obligations.