Loan for $200 million will finance construction of a combined-cycle gas plant that will reduce vulnerability of the country’s energy system 

The Inter-American Development Bank (IDB) has approved a loan for $200 million to Uruguay finance construction of a 530 MW combined-cycle gas power plant to help diversify the country's energy mix in an environmentally sustainable manner. The new plant will reduce the vulnerability of the country’s energy system in years when low rainfall affects hydroelectric generation. 

The loan will finance construction of the combined-cycle Punta del Tigre "B" power plant, complementary works, and support for an environmental management program for the National Electricity Generation and Transmission Authority (UTE), a decentralized state agency charged with ensuring sustainable electrical service in Uruguay. 

The Punta del Tigre "B" plant, which will be the country’s first combined-cycle facility, will be built on the same site as Punta del Tigre "A" plant. The site is served by a gas pipeline from the Cruz del Sur pipeline, which will be connected to a future regasification plant that will supply natural gas to the new plant. The plant is located in Colonia Wilson, Department of San Jose, 40 km. west of Montevideo. 

The total investment in the construction of the Punta del Tigre "B" plant is $741.2 million. Also participating in the project are the Andean Development Corporation, with $180 million; Germany’s KfW, with $70 million; and UTE, with $291.2 million. 

The IDB loan for $200 million has a term of 25 years, a grace period of five years, and an interest rate based on LIBOR.