KfW IPEX-Bank announced recently it is providing a project-related corporate loan of US$100 million to develop the 2.4-GW Ituango hydro project in Colombia.
As part of the structuring of this loan to Empresas Publicas de Medellin, the project was assessed with regard to compliance with KfW IPEX-Bank’s sustainability policy and the Equator Principles and fulfills their requirements. The Equator Principles are a risk management framework, adopted by financial institutions, for determining, assessing and managing environmental and social risks in development projects.
KfW IPEX-Bank says it is among several institutions providing financing for this project, to be located on the Cauca River in the Antioquia department. KfW IPEX-Bank’s financing is a share of a B loan tranche extended by the Inter-American Investment Corporation (IIC), a member of the Inter-American Development Bank Group.
The bank says it is supporting exports from Europe, among them the eight turbine-generator units being manufactured by GE (formerly Alstom). A press release from KfW IPEX-Bank says the first four units are expected to begin generating power between 2018 and 2019, with the entire plant on line in 2021.
Earlier this year, the Inter-American Development Bank provided a US$1 billion loan for the project.