IDB approves financing for hydropower project in Venezuela
Credit will enable completion of facility that will supply up to eight percent of the country’s electricity in a sustainable manner
The Inter-American Development Bank today approved an $800 million supplementary loan to Venezuela for the completion of the Manuel Pilar (also known as Tocoma) hydropower project in the Lower Caroní River Valley.
Construction on the plant, which will have an installed capacity of 2,160 megawatts, began with the initial diversion of the river in 2002. Its 10 generators are scheduled to begin operating on a staggered basis between 2012 and 2014. The plant is being built and will be operated and maintained by Electrificación del Caroní S.A. (EDELCA), a state company.
When completed, the project will be the fourth hydropower plant functioning in the Lower Caroní River Valley, which already provides 70 percent of Venezuela’s electricity supply. The IDB participated in the development of this energy system with a $500 million loan approved in 1993 to help finance the construction of the Caruachi project, and a $350 million loan for an electric transmission system for the Guri hydroelectric plant.
The IDB approved a $750 million loan to help finance the Tocoma project in 2005. The $800 million in supplemental financing will be used for primary civil works and will also replace part of the original local counterpart financing and partly cover increased costs. The funds will contribute to the financial sustainability of the project and allow construction to proceed according to schedule.
The project will increase the supply of power to households and industry, improve economic competitiveness and contribute to economic growth through a power source that is more environmentally sustainable than existing alternatives. Among the benefits of the Tocoma project will be a reduction in the emission of greenhouse gases through the displacement of current thermal electricity generation.
The IDB loan is for a 20-year term, with a six-year grace period, at an adjustable interest rate.
Topics: credit, eclectricity, energy, financing, Governance, hydropower, IDB, Inter-American Development Bank, Lower Caroni River Valley, Manuel Pilar hydropower project, society, sustainable energy, Venezuela
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