The Inter-American Investment Corporation (IIC) continues to support energy generation from renewable sources in Uruguay with the approval of a $56 million financing package for a 500 Kv transmission line between the cities of Melo and Tacuarembó. The project will expand the electricity network enabling the integration of renewable energy into the grid.
The project represents the first public-private partnership (PPP) for transmission assets in the country. Italy’s Terna SpA will design, construct and supply the project to UTE, Uruguay's state-run electric utility, which will use and maintain the line under an operating lease agreement.
The project seeks to strengthen the reliability of the Uruguayan electricity system by accommodating the country’s recent massive shift towards non-conventional renewable energy. The 213 km transmission line will represent approximately 5 percent of today's total transmission network. It is part of the IIC strategy to optimize our support to countries and private clients engaged in PPPs - risk-sharing structures which are proven to stimulate economic growth and reduce social inequalities in Latin America and the Caribbean.
The financing package is comprised of an IDB/IIC loan of $38.1 million and a co-loan of $17.9 million from the China Co-financing Fund for Latin America and the Caribbean.
About the Inter-American Investment Corporation (IIC)
The Inter-American Investment Corporation (IIC), a member of the Inter-American Development Bank Group (IDB Group), is a multilateral development bank committed to supporting the private sector in Latin America and the Caribbean. The IIC finances sustainable enterprises and projects to achieve financial results that maximize social and environmental development for the region. With a current portfolio of $11 billion under management and 350 clients in 21 countries, the IIC works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients.
About the IDB
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.
- José Luis Lobera