Union Group has raised US$59 million project financing for Peru's 19-MW 8 de Agosto and 8.4-MW El Carmen hydropower projects.
Project financing has been provided by Germany's DEG, the Netherlands Development Finance Company (FMO), Austrian development bank OeEB and Peruvian development bank COFIDE.
The total project investment is estimated at US$88 million. It marks the first stage of a plan to build nine hydropower plants with 125 MW of capacity.
Union Group president and founder Juan Sartori stated:
"We are delighted to have brought this transaction to a close and we welcome the four development banks as strategic partners in this project. Each of them share our long-term ambitions for the hydropower sector in Peru and our vision to deliver clean energy while creating jobs, encouraging economic growth and delivering investor returns."
The two hydropower pants, located in Monzon district, are being developed by Genaracion Andina, a subsidiary of Union Group. They will be linked by a 60km transmission line to the power grid.
Construction started in March 2014. The new facilities are expected to be operational by 2016.
El Carmen and 8 de Agosto will generate up to 215 GWh per year. The plants are backed by 20-year power purchase agreements (PPAs) with the Peruvian government.