The IDB loan is sovereign guaranteed and will help finance the company’s Pro-Energia programme, contributing to ensure the construction of the electricity infrastructure necessary to meet the projected increase in demand, which includes the 2014 Soccer World Cup.
The IDB loan will contribute to finance:
• The expansion of the Ijuizinho II small hydroelectric plant, whose output capacity is expected to increase to 15MW from 1MW. The project will avoid the emission of about 15,000 tons of carbon dioxide equivalent annually.
• The rehabilitation and modernisation of the Itaúba and Passo Real hydroelectric plants to improve operational efficiency and reduce maintenance costs.
• The expansion and upgrading of the company’s transmission network to improve the load and voltage levels.
The IDB loan is for 25 years, with a four-year grace period. IDB’s financing will be complemented by a US$59.1M loan from the French Development Agency (AFD) to CCCE-GT. The total project cost is US$147.8M.
