The Inter-American Development Bank (IDB) has approved a loan worth $88.7 million to Companhia Estadual de Geração e Transmissão de Energia Elétrica (CEEE-GT) to expand, rehabilitate and modernize power projects in Rio Grande do Sul, Brazil.
The loan amount will be used for the expansion of the Ijuizinho II small hydroelectric plant, which is expected to increase its output capacity from 15MW to 1MW.
The loan will also be used for the rehabilitation and modernization of the Itaúba and Passo Real hydroelectric plants and expand the company’s transmission network to improve the load and voltage levels. The estimated value of the project is $147.8 million.
The project will reduce about 15,000 tonnes of carbon dioxide emissions per year. The project is expected to create between 1,500 and 1,600 construction jobs.
The loan extended by IDB has a term period of 25 years and has a grace period of four years. The loan carries an interest rate based on LIBOR. The project forms an integral part of CEEE-GT’s Pro-Energia program, which involves construction of the electricity infrastructure that will enable the company to meet the projected increase in demand during the 2014 Soccer World Cup.
The project has also received a $59.1 million loan from the French Development Agency (AFD).