A member of the Inter-American Development Bank (IDB) Group, IDB Invest has agreed to provide a loan of $36m to Central Puerto SA (CPSA) for the La Castellana wind project in Argentina.
This is the first loan structured under the project finance modality of infrastructure and energy projects carried out in Argentina in the last decade.
The project consists of the construction, operation and maintenance of a 99 MW wind farm and its associated facilities, including a 132 kV and 37 km long transmission line in the south of the province of Buenos Aires.
The objective of the project is to contribute to the diversification of Argentina's energy matrix, which is dependent on thermoelectric and hydroelectric generation, and the sustainability of the country's electric power generation capacity.
The installed capacity of renewable energy is expected to increase by 99 MW, which will help reduce the dependence on more polluting generation sources. During the 20 years’ lifespan of the plant, 4,548,922 tons of carbon dioxide emissions will be displaced.
The term of the loan is 15 years in total. The project will be co-financed with a loan of $64 million from the International Finance Corporation, and with a loan of $5 million from the Canadian Climate Fund for the Private Sector of the Americas (C2F), which also includes an incentive mechanism to promote gender equality in the sector.