Washington D.C., February 9, 2009—
IFC, a member of the World Bank Group, today signed an agreement to invest $61.5 million for the construction of the Totoral Wind Farm, advancing the development of renewable energy in Chile. The 46-megawatt wind project will support the country’s objectives of promoting clean energy and diversifying its energy mix with a variety of renewable energy technologies.
The Totoral Wind Farm, situated 300 kilometers north of Santiago, will consist of 23 two-megawatt Vestas wind turbines. The project is expected to generate an average of 110 gigawatt hours per year of electricity for the Chilean central grid, relieving the significant supply constraints the country is experiencing. By increasing renewable energy generation, the Totoral Wind Farm will help reduce environmental pollution, improving the quality of life in the country.
The project will be the country’s first-ever project-financed wind farm. IFC will invest $30.75 million for its own account and syndicate $30.75 million, to be funded by DnB NOR, the leading Norwegian financial services firm. The project developer is Norvind S.A., a special-purpose vehicle set up by the project sponsors, Statkraft Norfund Power Invest A.S, the Norwegian power developer, and its Chilean partner, Centinela. Centinela, controlled by the Pavez family, is an investment company with interests in a wide range of industries.
The Totoral Wind Farm is expected to be one of the largest operating wind farms in Chile when it is completed in 2009. It will also be the first renewable energy project to be financed under Chile's new "Non-Conventional Renewable Energy Law," which was passed in March 2008. IFC’s financing monetizes the expected carbon revenues under the Kyoto Protocol's Clean Development Mechanism.
Bernie Sheahan, IFC Director for Infrastructure, said, “IFC expects the investment in Norvind to catalyze more project finance in non-conventional, renewable energy projects in Chile. We look forward to continuing our support for such sustainable energy projects in the country, including wind power, geothermal and small hydropower.”
IFC is supporting the government of Chile’s objectives of rapidly increasing and diversifying its energy supply. In the past five years, IFC has invested over $290 million in five projects with a focus on supporting the expansion of the country’s traditional energy sources such as hydro, as well as less traditional energy sources such as wind.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totalled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit
www.ifc.org
.
For more information about IFC’s partners, please visit:
