Finance, Latin America, New Development

Peru’s San Gaban project receives Chinese cash infusion

Peruvian Flag

The China Development Bank has agreed to provide US$365 million in financing for Peru’s 206-MW San Gaban III project.

Terms of the financing, signed this week by the bank and developer Hydro Global Peru S.A.C., show the loan carries a 19-year term.

Hydro Global Peru is a joint venture composed of China Three Gorges and Energias de Portugal, which was awarded a contract by state-owned generator Empresa de Generacion Electrica San Gaban (Egesg) to develop the plant in July 2016.

San Gaban III is located in the San Gaban district in Carabaya province, Puno region, downriver from Egesg’s 110-MW San Gaban II complex, which was completed in 1999. The development includes a powerhouse containing two vertical Pelton turbine-generator units and 220-kV transmission line connecting to the Onocora or Azangaro substations. It is expected to generate 1,263 GWh of electricity annually.

During its 30-year operating period, Hydro Global will transfer 5% of the San Gaban III output to Egesg. Egesg will take over operations at the end of the concession period.

Construction is reported to have begun in September, with completion scheduled for August 2021.

Egesg also holds a temporary concession for the 130-MW San Gaban IV project.