Buenos Aires, Argentina, June 27, 2019— IFC, a member of the World Bank Group, agreed to finance the construction of a wind farm awarded under Argentina’s RenovAr program, which is crucial in the country’s efforts to diversify its energy matrix, ease dependence on imported fossil fuels, and reduce carbon emissions. This is the third project financed by IFC under RenovAr, which seeks to sharply increase Argentina’s use of renewable energies.
The 88 MW La Genoveva project sponsored by Central Puerto S.A., is located close to Bahia Blanca, in the southern part of the province of Buenos Aires and expected to be operational by May 2020. Once completed, La Genoveva will inject approximately 390 gigawatt-hours of electricity per year into Argentina’s electricity grid, contributing towards Argentina’s target of achieving 20 percent of its total generation from renewable sources by 2025.
The finance package for a total of US$76.1 million includes a $46.1 million facility from IFC’s Managed Co-Lending Portfolio Program (MCPP), a platform that allows institutional investors the opportunity to passively participate in IFC’s future loan portfolio.
The financing marks the third time that IFC has partnered with Central Puerto to construct a wind farm in the country. The two previous projects (100.8 MW La Castellana and 48 MW Achiras) have been completed and are now fully operational.
IFC’s financial support to the wind power sector in Argentina demonstrated through these three projects is bolstered by its technical advisory services which are focused on ways to manage impacts on birds and bats from current and future wind power development projects, following international best practices. Consultations with the public sector, private companies, and civil society will inform the final Good Practice Guidelines for wind power development in Argentina, which IFC and IDB Invest will co-publish later this year.
“IFC continues to provide its support to the Government of Argentina’s successful RenovAr program through the financing of La Genoveva, which is particularly important at a time of significant volatility in Argentina’s financial markets”, said David Tinel, Regional Manager for IFC. “Our presence in the country is characterized by our counter-cyclical financing role and long-term partnerships with companies such as Central Puerto. We expect this will encourage other financial institutions to increase their financing to Argentina, fulfilling our role as a catalyst of private capital.”
“Central Puerto is engaged in a major effort to add significant renewable energy capacity, both through the RenovAr and MATER programs, consistent with the Government of Argentina’s objectives of diversifying the country’s energy generation matrix”, said Fernando Bonnet, Chief Financial Officer of Central Puerto. “Under the RenovAr and MATER schemes the company has already added 149 MW to its installed capacity and is additionally developing 237 MW of wind and solar photovoltaic projects. Central Puerto is pleased to count on IFC as a reliable financing partner in the development of several of these projects.”
IFC’s strategy in Argentina focuses on financing projects with significant development impact that spurs economic growth, innovation and job creation. Priority sectors include agribusiness, infrastructure, energy, manufacturing, and financial intermediaries to reach SMEs. Through its advisory programs, IFC works with governments and companies to help establish the conditions that will attract the most private capital, enabling the private sector to grow and create jobs.
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In fiscal year 2018, we delivered more than US$23 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org
About Central Puerto
Central Puerto S.A. is one of the largest private sector power generation companies in Argentina, as measured by generated power, with a current installed capacity of 4,092 MW and 800 MW under construction. Central Puerto’s assets are well diversified both geographically and technologically, with facilities distributed across the City of Buenos Aires and the provinces of Córdoba, Mendoza, Neuquén, Río Negro and Santa Fe, and a mix of combined cycle, gas turbines, steam turbines, hydroelectric plants and co-generation units. Central Puerto is listed on both, the New York and Buenos Aires stock exchanges, under the ticker symbol CEPU. For more information visit www.centralpuerto.com .
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