Odebrecht Group subsidiary Odebrecht Latinvest has agreed to sell the 456MW Chaglla hydroelectric plant in Peru to a consortium led by China Three Gorges Corporation (CTG).
The consortium led by CTG is composed of Hubei Energy Group Co., Ltd, Ace Investment Fund II LP, and CNIC Corporation Limited. The Chaglla hydroelectric plant is managed by Empresa de Generación Huallaga S.A. (EGH). The concession will be acquired through Huallaga Holding Company Limited, a special company created by the consortium.
The deal is subject to a number of closing conditions, including approvals from the Peruvian Ministry of Justice. Odebrecht’s advisors on the deal are Itaú BBA, Scotiabank and SMBC Nikko. The company has also hired White & Case LLP to provided legal advisory services. The Consortium’s financial advisor is Bank of America Merrill Lynch and its legal advisor is Sullivan & Cromwell LLP.
Chaglla is a hallmark of the Peruvian energy infrastructure. At a height of over 200m, it is one of the largest concrete-faced rockfill dams in the world. Its generation capacity accounts for approximately 10% of the country’s total installed hydroelectric capacity and approximately 4% of the country’s total power generation. It is the third largest hydro scheme in the country.