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Lima, Peru, December 20, 2010
—IFC, a member of the World Bank Group, will provide long-term financing of up to $250 million through IFC’s A/B Loan Program, including up to $70 million for its own account and up to $180 million from international commercial banks, to help build the Cheves hydropower project in Peru. Cheves, a greenfield hydropower plant with 168 Megawatt of installed capacity, will help meet Peru’s growing power needs while decreasing carbon emissions.
This is IFC’s first investment in Peru’s power-generation sector. Participating banks in the B Loan Program include DnB NOR Bank, Nordea Bank, Société Générale, and WestLB.
Located on the Huaura River, 250 kilometers north of Lima, Cheves is one of the very few hydropower projects developed in Peru in the last decade and therefore represents a cornerstone in Peru’s goal to promote the use of largely untapped renewable energy resources. IFC’s partnership with SN Power, a Norwegian company and long-standing IFC global client with extensive experience in renewable-energy projects supports the Peruvian government objective of having the private sector develop hydropower resources. IFC and the commercial banks participating in Cheves’ B Loan Program will provide significantly longer term financing than otherwise available for Peruvian projects. This is critical to ensure a sustainable financing structure, given the long-term nature of hydropower assets.
“This project shows our commitment to developing renewable-energy resources in Peru and other emerging markets, said Nils Huseby, SN Power Executive Vice President for South America. “It also sends a positive signal to developers and financiers regarding the investment opportunities in Peru’s renewable-energy sector and availability of long-term financing.”
Cheves is expected to produce about 836 Gigawatt hours of electricity annually starting in 2014. The increase in energy supply will serve individual households and industrial clients, such as mining projects among others. During the construction phase, the hydropower project is expected to employ about 700 local workers. SN Power will also continue implementing effective community-engagement programs.
“Supporting renewable-energy projects is at the core of IFC’s climate change strategy in Latin America and the Caribbean,” said Paolo Martelli, IFC’s Director for Latin America and the Caribbean. “Cheves will have a positive impact on the environment by offsetting carbon emissions of fossil-fuel power projects, while providing long-term energy security to Peru at affordable prices.”
IFC’s strategy in Peru aims to develop new business models and financing instruments for clean energy, energy efficiency, and cleaner production, while setting and improving environmental and social standards for the private sector. It also focuses on improving the investment climate and supporting key players in Peru’s private sector that can expand services and products to underserved sectors.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record US$18 billion in fiscal year 2010. For more information, visit
About SN Power:
SN Power is a Hydropower development company, operating exclusively in emerging markets. The company is a joint venture between Statkraft and Norfund and has projects and operations in Asia, Latin America and Africa. SN Power is working to develop a portfolio in the range 4000 MW of Hydropower plants by 2015, while combating climate change and contributing to sustainable development. SN Power has over 5.000 people employed in twelve countries around the globe. The headquarters is in Oslo, Norway. As of June 2010, SN Power reported US$1.6 billion in total assets and $1.1 billion in equity on a consolidated basis. For more information, visit
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