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Company Rurelec PLC
TIDM RUR
Headline

Peruvian Plant at Financial Close

Released 07:00 17-Jun-2013
Number 1352H07

RNS Number : 1352H
Rurelec PLC
17 June 2013
 



 

 

 

17th June 2013

Rurelec PLC

 

("Rurelec" or "the Company")

 

Rurelec's First Peruvian Hydroelectric Plant

at financial Close

 

 

 

Rurelec PLC (AIM: RUR), the electricity utility focused on development, ownership and operation of power generation plants, announces that it has achieved financial closure of its Canchayllo hydroelectric project in Peru.  The Canchayllo project has been financed by Inter-American Investment Corporation ("IIC"), a member of the Inter-American Development Bank ("IDB") Group, which promotes private sector development in Latin American, in the amount of US$7.2 million.  The first loan funds have now been disbursed.

 

Canchayllo is owned by Cascade Hydro Limited ("Cascade"), Rurelec's 70 per cent owned Peruvian power generation company.  The project itself is a 5.3 MW run of river power plant being built on the Pachacayo River in the Junin Province of Central Peru.  It has been awarded a Subasta Renewable Energy Resources ("RER") power purchase agreement at US $47.4 per MWh. 

 

The project is at an advanced stage of construction with 42 per cent of the civil works and 50 per cent of the construction of the one kilometre tunnelling already completed.  The plant is due to be commissioned in the first quarter of 2014 when it will enter into commercial operation.

 

Canchayllo is Rurelec's first project in Peru and its first entry into the renewables market in Latin American.  It is part of a portfolio of 40 MW of run of river plants to be developed and constructed in Peru by Cascade in association with private equity investors.  Canchayllo itself has been developed by Rurelec in advance of a capital increase of Cascade which is expected to close in the second half of 2013.

 

Commenting on the expansion, Peter Earl, Chief Executive of Rurelec said:

 

"I am delighted that our expansion in Peru is progressing well.  Obtaining infrastructure finance from the Inter-American Development Bank is a very significant step for us as we continue to increase our power generation capacity in Latin America. We are now developing 295 MW in Chile as well as 40 MW in Peru where 5.3MW is already under construction, and it is our intention to continue to increase capacity, subject to financing."  

 

-   The End -

 

 

 

For further information please contact:

 

Rurelec PLC

Daniel Stewart

Xcap Securities

Peter Earl, CEO

Ana Ribeiro, Head of Communication

 

www.rurelec.com

 

Paul Shackleton

Halimah Hussain /Jon Belliss

 

Tel: +44 (0)20 7793 5610

+44 (0) 7980 321505

Tel: +44(0) 20 7776 6550

 

Tel: +44 (0)20 7101 7070

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Peruvian Plant at Financial Close - RNS