The Inter-American Development Bank’s private sector financing branch IDB Invest has announced it will provide a US$1 billion loan to Colombian utility Empresas Publicas de Medellin.
The money will be applied to the construction of EPM’s 2.4-GW Ituango hydroelectric plant, which received $510 million via the Colombian utility’s 2018 budget announced in December.
IDB’s financing will come in the form of two tranches — each carrying a 12-year term and each coming with a four-year disbursement.
The loan will be co-financed by a number of other international lenders, including Chinese, Canadian, German, Argentinian, Japanese and Spanish development banks.
The first turbine unit at Ituango is expected to begin operating later this year. Alstom won a contract to outfit the plant in November 2012 before beginning the transport of materials to the site in September 2015. The infrastructure itself is being built by a Brazil’s Camargo Correa and Colombia’s Concocreto and Coninsa.
Ituango is located on the Cauca River in Antioquia. The plant will be Colombia’s largest when it enters full operation.