Peruvian investment fund Fondo Trasandino Peru (FTP) has approved investment of US$2.25 million in the 5.9-MW Santa Cruz 1 hydroelectric project, the first of five small plants to be developed in Ancash Department of Peru’s Huaylas Province.
State news agency Andina said FTP, Peru’s first private capital fund for institutional investors, is providing the investment to developer Hidroelectrica Santa Cruz for the total US$6.5 million project. Co-investor is construction company GCZ Ingenieros, which is to build the plant.
Construction is to begin in early 2008, with completion in 18 months.
Santa Cruz 1 is the first of five hydro plants totaling 40 MW that are to be built in sequence for a total of US$39 million.
All five are to be completed by 2013.
In addition to generating low-cost electricity, the project is expected to generate carbon emission reduction credits for sale under the Kyoto Protocol to stem climate change.