Washington D.C., July 3, 2002
—The International Finance Corporation (IFC), the private sector development arm of the World Bank Group, will provide US$18 million to the electric company Interconexion Electrica ISA Peru, to support the development and expansion of Peru’s national electric transmission network.
IFC’s long-term financing will support the construction and operation of two transmission lines in central Peru that will help improve the grid’s stability and overall reliability of the country’s transmission network. The new lines will connect the municipality of Pucallpa, Peru’s most important town in the Amazon region with a population of about 240,000 people, to the country's national transmission network.
Interconexion Electrica ISA Peru, S.A. is a subsidiary of the Colombian-based company Interconexion Electrica S.A. (ISA), which is Colombia’s national transmission company. ISA was awarded a 32-year concession to build and operate the transmission lines in Peru, and to develop this project, ISA is operating through its subsidiary ISA Peru.
Javier Gutierrez, ISA’s Chief Executive Officer, said: “IFC’s investment is an important step in helping ISA accomplish its goal of integrating the Andean electricity markets with transmission interconnections from Venezuela to Bolivia.”
”IFC’s investment in ISA Perú will finance the construction of two critical links in Perú’s transmission network, and thus will contribute to the continued strengthening of the country’s electricity system,” said Francisco Tourreilles, Director of the Power Department of IFC. “IFC welcomes the opportunity of working in this project with Interconexión Eléctrica S.A., a Colombian company with long experience in the transmission business that is increasingly active in the Andean electricity market,” he added.
IFC’s mission (www.ifc.org) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, and provides technical assistance and advice to governments and businesses.
Since its founding in 1956, IFC has committed more than $31 billion of its own funds and arranged $20 billion in syndications for 2,636 companies in 140 developing countries. IFC’s committed portfolio at the end of FY01 was $14.3 billion.
