IIC considers financing wind projects in Brazil
The Inter-American Investment Corporation (IIC), a member of the Inter-American Development Bank (IDB) is considering financing two wind projects in Brazil.
Lagoa do Barro (LdB) wind power project will add 195 MW of renewable energy to the Brazilian electricity system. The Project consists of the construction of 8 adjacent wind farms totaling 195 MW and its associated facilities in the state Piauí, located in the Northeast of Brazil.
The Project will benefit from a 20-year BRL denominated power purchase agreement (PPA) at fixed average price of around BRL139.9/MWh (US$55.3/MWh) as of November 2014.
The estimated total cost of the Project is of up to BRL1.3 billion (US$418 million), which will be financed through (a) an IDB Group Partial Guarantee for the senior loan until financial completion and/or (b) an IDB Group Guarantee for the debentures to improve their risk profile and pricing or (c) a long-term loan with a 15-year door-to-door tenor and a grace period of up to 36 months. It is estimated that the IDBG participation will amount of up to BRL430 million (US$138 million). The financial plan will be completed with the participation of one local development institution, as well as equity contributions for around 70/30 debt-to-equity ratio.
Santa Vitoria do Palmar wind power project will add 207 MW of renewable energy to the Brazilian electricity system. The Project consists of the construction of 12 adjacent wind farms totaling 207 MW and its associated facilities in the state of Rio Grande do Sul, located in the South of Brazil.
The Project will benefit from a 20-year BRL denominated power purchase agreement (PPA) at fixed average price of around BRL124.5/MWh (US$52.8/MWh) as of December 2013.
The estimated total cost of the Project is of up to BRL1.3 billion, which will be financed through an IDB Group Guarantee for the debentures to improve their risk profile and pricing. It is estimated that the IDBG participation will amount of up to BRL162 million (US$52 million).
