Overseas Private Investment Corporation (OPIC), Inter-American Development Bank (IDB), International Finance Corporation, CorpBanca, Banco de Credito e Inversiones, Banco Itau Chile, Banco del Estado de Chile, KfW Ipex-Bank GmbH and DNB Bank, have participated in the 20-year project financing deal.
Of the total loan amount, IDB will finance around $195m for the project, 90% infrastructure of which will be located underground including the power houses and 67km of tunnels.
IDB Infrastructure Division Structured and Corporate Finance Department chief Jean-Marc Aboussouan said the latest project makes a major contribution to Chile’s energy strategy in the future.
"We have been able to structure a loan commensurate with the needs of a project of this size, and our involvement in identifying measures to mitigate environmental and social impacts has been significant," added Aboussouan.
The project, which is owned by AES Gener (60%) and Antofagasta Minerals (40%), calls for the construction of two run-of-the-river hydroelectric facilities, namely 264MW Alfalfal 2 and 267MW Las Lajas.
The Alfalfal 2 facility will be constructed in the Colorado River sub-basin downstream from Alfalfal 1, while the Las Lajas facility is being built near the confluence of the Maipo River and El Manzano marsh.
Once operational in 2018, the project, located 17km of new 110/220 kV transmission lines, will generate an annual average of 2,300GWh of electricity.
The project, which is estimated to cost around $2bn (60% debt and 40% equity), has already obtained environmental clearance from the government.
Earlier in November 2012 Hochtief-led consortium has won a contract to construct Alto Maipo’s tunnels and other intake structures.
