The Inter-American Investment Corporation (IIC), acting on behalf of the Inter-American Development Bank (IDB) Group, has signed a financing package of US$18.5 million with Itelecom to upgrade public roadway lighting systems to high efficiency LED technology in eight municipalities in Chile.
The project will replace 81,000 older luminaires with high efficiency LED technology. The new luminaires are up to 60% more efficient than the existing infrastructure, saving approximately 26,000 Megawatt-hours (MWh) of electricity per year. The cost savings from the reduced energy consumption will allow local authorities to cover the payment obligations under the contracts.
The project aims to demonstrate the viability of savings-driven financing models to support investments in energy efficiency and their potential to mobilize private capital through energy service companies. This innovative PPP financing and operation model will complement publicly-funded programs and could be replicated in other municipalities in Chile and Latin America and the Caribbean. The project will reduce greenhouse gas emissions from street lighting by about 17,500 tons of CO2e per year.
This blended finance operation includes an IDB loan of US$7 million and co-loans from the Canadian Climate Fund for the Private Sector in the Americas (C2F) and the Clean Technology Fund (CTF) for US$7 million and US$4.5 million, respectively. The project will also benefit from technical assistance and a first-loss guarantee of US$2.5 million from CTF’s Chile PEEERA Program, which support investments at scale in energy efficiency and self-supply renewable energy technologies.
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.
About Itelecom and GO+ Lighting Service
Itelecom is dedicated to providing state-of-the-art technology solutions for the telecom, mining and enterprise markets, and is a pioneer in the Lighting-as-a-Service model with the GO+ Lighting Service focused on large enterprises, institutions, campuses, and municipalities. With more than 100 employees in seven countries, Itelecom is an innovation company with the resources and experience to design, develop, and maintain technology deployments that meet customer’s specific requirements. The GO+ Lighting Service has resulted in the deployment of more than 50,000 efficient street lights in Chile, and over 100 additional GO+ Lighting projects in several countries, including the US, Mexico, Colombia, Peru and Argentina. For more information, please visit: www.itelecom.cl, www.go-mas.cl and www.gopluslightingservice.
- José Luis Lobera