BNDES and IDB sign US$2.4 B loan for infrastructure and sustainable energy projects

Paulo Rabello de Castro, president of the Brazilian Development Bank (BNDES), and Alexandre Meira da Rosa, vice-president for Countries of the Inter-American Development Bank (IDB), Alexandre Meira da Rosa, have signed a conditional credit line worth USD 2.4 billion to fund  infrastructure and sustainable energy projects and productive projects of small and medium companies.

BNDES signed was the first loan contract to the Funding Program to Sustainable Energy worth US$900 million (US$750 million from the IDB and USD 150 million from the BNDES). 

According to the BNDES, most of the proceeds from the agreement will be used to finance wind energy projects. The funds are expected to finance the development of more than 600 MW of  wind capacity. Specifically, BNDES said in an statement:

"Most of the proceeds from this first loan agreement will be allocated to wind power generation projects with potential to finance investments in installed capacity in excess of 600 MW"

This agreement comes after the achievement of the memorandum of understanding (MoU)  in 2016, which formalized the cooperation between BNDES and IDB in several areas, including energy efficiency projects financing and green bonds structuring.

IDB is the main international creditor of BNDES. So far, BNDES has six active operations with IDB totaling, approximately US$3.25 billion, which represents 55% of the total external funding raised by BNDES from international organizations.

During November we have reported about several energy projects in Brazil:

• 27.6 MW Delta 3 III wind farm in Maranhao
• 31.5 MW Canoas wind project
• 162 MW Apodi solar PV project in Ceara state
• 158 MW Lapa solar plant in the state of Bahia
• 103 MW Horizonte solar plant in Bahia
• 460 MW Pirapora Solar Complex in the state of Minas Gerais
• 38 MW solar PV project in northeastern Brazil
• 180 MW Delfina onshore wind farm in Campo Formoso, Bahia state
• 424 MW Jaguara hydropower project in Rifaina
• 408 MW Miranda hydropower plant in Minas Gerais
• 380 MW Volta Grande hydropower project in Agua Comprida
• 1,710 MW Sao Simao hydropower project in Goiás