The Inter-America Development Bank’s IDB Invest, the private sector institution of the IDB, has signed a $1 billion senior, unsecured A/B loan package to Columbian utility, Empresas Públicas de Medellín (EPM), to build a 2,400 MW hydropower facility in the northern region of Antioquia, Colombia. Ituango will be the largest hydropower project undertaken in the country.
The financing package comprises a $300 million A loan from the IDB Group, as well a $50 million co-loan from the IDB Invest-administered China Co-Financing Fund for Latin America and the Caribbean, and a $650 million B loan from international commercial banks and institutional investors. The financing offers a tenor of 12 years for the A loan, and a 12-year and an 8-year tranche for the B loan.
The project is located in the northwest of the department of Antioquia, about 170 kilometers from the city of Medellin. It occupies properties in the municipalities of Ituango and Briceño, where the main works are located, and Santa Fe de Antioquia, Buriticá, Peque, Liborina, Sabanalarga, Toledo, Olaya, San Andrés de Cuerquia, Valdivia and Yarumal, which will contribute to various segments of the project.
The dam will be located about 8 km downstream of the Pescadero bridge on the Cauca River.
The Ituango hydropower plant will represent approximately 18 percent of the country’s total installed power capacity, and is expected to generate approximately 13,900 GWh of renewable electricity per year when operational.