Peru's 19-MW 8 de Agosto and 8.4-MW El Carmen hydropower projects have received a US$59 million financing package arranged by energy investor Union Group.
The package includes senior debt contributions from Germany's DEG, the Netherlands Development Finance Company (FMO), Austrian development bank OeEB and Peruvian development bank COFIDE.
"We are delighted to have brought this transaction to a close and we welcome the four development banks as strategic partners in this project," Union Group president and founder Juan Sartori said. "Each of them share our long-term ambitions for the hydropower sector in Peru and our vision to deliver clean energy while creating jobs, encouraging economic growth and delivering investor returns.
Both plants are being developed by Union Group subsidiary Generacion Andina and backed by 20-year power purchase agreements with the Peruvian government.
The hydroelectric projects are located in the Monzon district and are scheduled for completion in January 2016.
HydroWorld.com reported in July that the Union Group had acquired the 5.3-MW Canchayllo plant as part of a plan to expand its Peruvian hydropower portfolio. The investment firm said it is developing close to 1,000 MW-worth of assets in the country.
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