Inter-American Investment Corp (IIC) is to invest in common stock of up to $3.5m in Andean Power Generation, a Union Group subsidiary, to help develop 27.4MW of hydro power in Peru.
The proceeds will be used towards construction of the El Carmen and 8 de Agosto hydro plants in Huánuco in the centre of the country.
The projects are backed by two 20-year power purchase agreements with the Peruvian government and are due to start operating during the first quarter of 2016.
The two plants are in total worth $88m and mark the first stage of Union Group’s plan to build nine hydropower plants with 125MW of capacity in Huanuco.
Union Group president and founder Juan Sartori said: “We welcome IIC as an important strategic partner in the development of our hydropower projects in in Peru.
“IIC’s support will help ensure the delivery of these two important plants, the provision of clean energy for 150,000 people and jobs for 400 people in the local area.”
The IIC, which is a member of the Inter-American Development Bank Group, promotes private-sector development in Latin America and the Caribbean with a focus on small and medium-sized enterprises.
Image: sxc
