The Union Group has acquired the 5.3-MW Canchayllo hydropower project in Peru as part of an acquisition that includes developer Empresa de Generacion Electrica Canchayllo S.A.C.
The US$14.3 million deal adds to the Union Group's growing presence in the South American country, which already includes the 8.4-MW El Carmen and 19-MW 8 de Agosto plants.
"Hydropower is a strategically important sector for the Union Group in Peru, one involving long-term, cash-generative real assets that help diversify our global institutional investors' portfolios," president and founder Juan Sartori said. "This acquisition is part of our approach to buy existing assets, as well as developing and building our plants ourselves."
HydroWorld.com reported that the run-of-river Canchayllo began production in January. The plant is located on the Pachacayo River in Junin Province and took 18 months to complete.
Empresa de Generacion Electrica Canchayllo S.A.C. (EGECSAC), a Ruralec subsidiary, received a $7.2 million loan for its construction from the Inter-American Investment Corporation (IIC) in December 2012 after securing rights for its development the previous year.
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