Announcement of IFC Helps Finance Peruvian Private Sector Power Project on December 14, 1981

IFC Press Release No. 82/18 Monday, December 14, 1981 IFC Helps Finance Peruvian Private Sector Power Project A group of Peruvian mining companies is undertaking an $18 million private sector electric power transmission project which will lower energy costs at their mines sites, reduce the need to truck fuel oil up from Lima and, at the same time, make electricity available to some 40,000 people in rural communities in the area. The project -- Consorcio Energetico de Huancavelica (CONENHUA) -- will be located high in the central Andes about 150 miles southeast of Lima. It consists of a 50-mile, 60 kilovolt transmission line, which will draw power from Electro- peru's Mantaro hydro station, and two substations located at the mining centers of Caudalosa and Ingenio. IFC, an international development institution that supports private enter prise ventures in developing countries, is lending $4.5 million for the project and Banco Minero, which helps finance the Peruvian mining sector, is lending $3 million. An additional $5 million in debt financing will be provided by Corpora- cion Financiera de Desarrollo, the leading Peruvian development company, and by suppliers' credits. A total of $5.5 million is being invested in equity by the seven sponsor ing mining companies: Buenaventura S.A., Corporacion Minera Castrovirreyna S.A., Castrovirreyna Compania Minera S.A., Compania Minera Caudalosa S.A., Compania Minera Chonta S.A., Compania Minera La Virreyna S.A. and Compania Minera El Palomo S.A. The project is in line with the Government's efforts to increase the use of Peru's abundant hydroelectricity and save on non-renewable sources. The minin. companies, which presently rely on diesel generators to meet their power needs, will secure an economical and stable supply of energy and remove constraints in the ex-- pansion of their mines. Electroperu will be able to make full use o. the Mantaro -2- hydroelectric station' s capacity and will use CONENHUA's facilities to provide electricity to surrounding villages. In addition to its financing, IFC assisted the venture by helping to structure the financial plan and by providing technical and managerial assistance, [Any inquiries strictly relating to IFC's participation in this project should be directed to the IFC Information Office, 1818 H Street, N.W., Washington, D.C, 20433, Telephone (202) 676-0394.]