Quick Facts

Countries:
Where the impacts of the investment may be experienced.
  • Chile
Location: Melipilla, Cartagena, San Javier, Villa Alemana, and Coyhaique
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Banks:
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
  • Inter-American Investment Corporation (IIC)
Bank Risk Rating: C
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Board Decision Date: 2016-10-21
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower or Client: Inversiones y Asesorias en Telecomunicaciones e Informatica S.A.
The holder of the loan, grant, or other investment.
Sectors:
The service or industry focus of the investment. A project can have several sectors.
  • Energy
Investment Type(s): Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD): $ 10.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD): $ 15.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.

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Primary Source

Original disclosure @ IIC website
Updated in EWS: 2017-06-22
Disclosure Date: 2016-09-21
Itelecom Energy Efficient Street Lighting
IIC-11620-01

Project Description
The proposed loan will support Itelecom in developing and installing high efficiency LED technology for public street lighting in Chilean municipalities under a third party, structured financing model. The municipalities expected to be included in the program will be Melipilla, Cartagena, San Javier, Villa Alemana, and Coyhaique. The use of blended climate finance will enable the demonstration of a highly scalable and replicable financing model in the municipal street lighting sector in Chile and throughout the LAC region. The energy efficiency projects will reduce energy consumption and therefore lighting expenses, providing monetary savings to the municipalities. The main project outputs will be the replacement of approx. 37,700 luminaires with high efficiency LED technologies. The main outcomes of the project include reductions in energy costs, energy use, and GHG emissions in the municipal public lighting systems. The IIC states that the project will reduce CO2 emissions across the three municipalities by more than 70,000 tons over the first 10-years of useful life of the fixtures. The lighting system’s electricity consumption will be reduced by approximately 55 percent, saving over 100,000 MWh over the same period. The project will also increase luminosity by more than 100%, improving the quality and quantity of street lighting. The project consists of mainly retrofitting existing public municipal lighting systems (about 95% of total installations) in urban and suburban areas. The principal risk of this project is likely connected to the installation activities for the retrofit and the implementation of adequate procedures for waste management and disposal specifically of high-pressure sodium (HPS) lighting during installation activities. The proposed operation is categorized as a Category C according to the IIC’s Environmental and Social Sustainability Policy, as it is likely to result in very limited or no adverse environmental or social impacts or risks.
Investment Description
The Project consists of a senior IIC A loan of up to the Chilean peso equivalent of US$10M with a 9-year tenor and 1-year grace period. The total project costs are expected to be approximately US$15M and the structure includes a first-loss guarantee of up to US$6.05M from the Clean Technology Fund (CTF).
Contact Information
For inquiries about this project, contact divulgacionpublica@iadb.org. ACCOUNTABILITY MECHANISM OF IIC The Independent Consultation and Investigation Mechanism (MICI) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an Inter-American Development Bank (IDB) or Inter-American Investment Corporation (IIC)-funded project. If you submit a complaint to MICI, they may assist you in addressing the problems you raised through a dispute-resolution process with those implementing the project and/or through an investigation to assess whether the IDB or IIC is following its own policies for preventing or mitigating harm to people or the environment. You can submit a complaint by sending an email to MICI@iadb.org. You can learn more about the MICI and how to file a complaint at http://www.iadb.org/en/mici/mici,1752.html (in English) or http://www.iadb.org/es/mici/mici,1752.html (Spanish).