The loan will be used by CELESC-D, which serves Brazil’s state of Santa Catarina, to provide higher quality and more reliable supply of electric power in the region.
IDB said that the funding will help CELESC-D increase power generation capacity to meet the estimated 28,270GWh power demand by 2022.
The 25-year term investment loan, which is funded through the IDB’s Ordinary Capital, will be used by the utility to support the expansion and improvement of the distribution network by installing new lines, substations, equipment, and feeder lines and expand the low voltage network.
CELESC-D will also use the loan to replace and install new meters as well as improve quality indicators and upgrade its information management systems.
In addition to reducing the frequency and duration of outages in Santa Catarina area, the financing program is expected benefit industrial sector, which are said to account for 41% of CELESC-D’s demand.
IDB said: “The program will also make it possible to incorporate new clients in the concession area, while improving service continuity indicators up to the regulatory limits established in its concession contract.”
CELESC-D plans to install new distribution lines, substations, and feeder lines to help meet the projected electricity demand in Santa Catarina.
