Press Releases 2013

Rurelec's First Peruvian Hydroelectric Plant at Financial Close

Details

Published: Monday, 17 June 2013 10:07

Rurelec PLC (AIM: RUR), the electricity utility focused on development, ownership and operation of power generation plants, announces that it has achieved financial closure of its Canchayllo hydroelectric project in Peru.  The Canchayllo project has been financed by Inter-American Investment Corporation ("IIC"), a member of the Inter-American Development Bank ("IDB") Group, which promotes private sector development in Latin American, in the amount of US$7.2 million.  The first loan funds have now been disbursed.

Canchayllo is owned by Cascade Hydro Limited ("Cascade"), Rurelec's 70 per cent owned Peruvian power generation company.  The project itself is a 5.3 MW run of river power plant being built on the Pachacayo River in the Junin Province of Central Peru.  It has been awarded a Subasta Renewable Energy Resources ("RER") power purchase agreement at US $47.4 per MWh. 

The project is at an advanced stage of construction with 42 per cent of the civil works and 50 per cent of the construction of the one kilometre tunnelling already completed.  The plant is due to be commissioned in the first quarter of 2014 when it will enter into commercial operation.

Canchayllo is Rurelec's first project in Peru and its first entry into the renewables market in Latin American.  It is part of a portfolio of 40 MW of run of river plants to be developed and constructed in Peru by Cascade in association with private equity investors.  Canchayllo itself has been developed by Rurelec in advance of a capital increase of Cascade which is expected to close in the second half of 2013.

Commenting on the expansion, Peter Earl, Chief Executive of Rurelec said:

"I am delighted that our expansion in Peru is progressing well.  Obtaining infrastructure finance from the Inter-American Development Bank is a very significant step for us as we continue to increase our power generation capacity in Latin America. We are now developing 295 MW in Chile as well as 40 MW in Peru where 5.3MW is already under construction, and it is our intention to continue to increase capacity, subject to financing."  

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