Quick Facts

Countries:
Where the impacts of the investment may be experienced.
  • Argentina
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: B
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: 2018-06-26
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: Vientos de Arauco Renovables SAU and Arauco Renovables SAU
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): $ 50.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD): $ 50.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.

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Primary Source

Original disclosure @ IIC website
Updated in EWS: 2018-03-21
Disclosure Date: 2018-03-05
Parque Arauco Wind Projects
IIC-PROJECTNUMBER

Project Description

The Inter-American Investment Corporation (IIC) is considering providing a loan to support the construction of (a) Phases 1 and 2 of the Arauco Wind Project II (Central Arauco II – phases 1 and 2), a wind farm of approximately 99.75 MW of installed capacity (99.75 MW) under the Special Purpose Company Vientos de Arauco Renovables SAU, (b) Phases 3 and 4 of the Arauco Wind Project II (Central Arauco II phases 3 and 4) , a wind farm of approximately 95 MW of installed capacity under the Special Purpose Company Arauco Renovables SAU (both plants to be located in the same location as the existing plants) and (c) an 83 kilometer, 132 kV high voltage transmission line to connect the Arauco Wind Project II plants to the 500 kV distribution transforming station (La Rioja Sur- operated by Transnoa) that connects with the national grid (the “Project”).
The Project will sell electricity to CAMMESA under two 20-year power purchase agreements (the “PPAs” and each a “PPA”) awarded under the RenovAr Program, as further described below. The PPA for Phases 1 and 2 was won by the Sponsor at a price of US$ 67.19/MWh under RenovAr Round 1.0 and the PPA for Phases 3 and 4 was won by the Sponsor at a price of US$56.67/MWh under RenovAr Round 1.5. The Project is expected to start production by 2019. The financing will consist of an A Loan for up to US$50M from the IDB Group and the balance from other co-lenders, like CESCE.

Investment Description
Private Actors
Contact Information

For inquiries and comments to IIC, contact:
IIC’s Communications Group
E-mail: 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).

Bank Documents