KfW IPEX-Bank is providing a loan of US$100 million for the 2.4GW Ituango hydropower plant in the department of Antioquia in Colombia.
With this financing, KfW IPEX-Bank said it is supporting exports from Europe. For example, the hydropower section of GE (formerly Alstom) is delivering the eight turbines for the project.
Due to the financing mode and volume, the project is considered a project-related corporate loan. As such it was assessed with regard to compliance with KfW IPEX-Bank's Sustainability Policy and the Equator Principles and fulfils their requirements.
KfW IPEX-Bank's financing is a share of a B loan tranche extended by the IIC (Inter-American Investment Corporation, a member of the Inter-American Development Bank Group, IDB). The borrower is Empresas Públicas de Medellin E.S.P., one of the three largest Colombian energy companies.
The first four turbines are expected to start generating power between 2018 and 2019; it is expected that the rest of the plant is generating in its entirety in 2021.