Company name

Central Puerto La Castellana S.A.U.

Project number

12063-01

Category A projects could result in potentially significant environmental and/or social risks and impacts, which are diverse, irreversible, or unprecedented that may extend beyond the boundaries of the actual project site or facilities. In principle, Category A includes projects which have significant impacts on protected or sensitive areas21 and/ or vulnerable groups.

E&S category
tooltip

A

Country

Argentina

Sector

Energy

Status

In implementation

Disclosed date

11/22/2016

Projected date at which a project will be put forward for the Board of Executive Directors’ approval.

Projected board date
tooltip

06/13/2017

Approval date

06/21/2017

Signed date

10/20/2017

Sponsoring entity

N/A

Team leader

Garcia Giron, Carlos Manuel

Investment type

Financing requested

N/A

Syndicated amount

USD $ 5,000,000

Financing amount

USD $ 31,000,000

Currency

USD

Project scope and objective

The Castellana wind power project (the “Project” or “La Castellana”) will add 99 MW of renewable energy to the Argentinean electricity system, thus directly supporting the Government of Argentina’s (“GoA”) priorities to ensure a stable long-term electricity supply and the diversification of its energy matrix with the expected addition of 2.7 GW from renewables sources by 2018. The project consists of the construction, operation and maintenance of a 99 MW wind farm, its associated facilities, a 132kV 45km transmission line and 15km of service roads, to be located south of the province of Buenos Aires, 36km northwest of the city of Bahia Blanca, Argentina. The Project will sign a 20-year power purchase agreement (“PPA”) with the wholesale electric market administrator (“CAMMESA”) to inject energy to the national interconnection system (¨SADI¨) via the 132 kV Chañares substation, at a bidding price of US$61.50/MWh increased annually by an adjustment factor. Electrical studies were presented to the relevant authorities, which provided a favorable opinion to the Project´s interconnection specifications for the assigned node. The Borrower is expected to enter into an EPC contract covering civil and electromechanical works, and a turbine supply agreement for the turbines from a first-tier manufacturer and a long-term O&M contract. It has an estimated 18-month construction period, with construction starting by the first quarter of 2017. Wind resource has been assessed by DNV GL based on on-site wind measurements from October 2012 to March 2016, with average wind speeds of 8.6m/s at 81m hub height. The Project has a capacity factor of 50.6% and estimated annual energy production at P50 of 439.5GWh/year.

Transaction Structure and Financing Highlights. The estimated total cost of the Project is of up to US$200 million, which will be financed through an IDB Group loan of up to US$50 million. The financial plan will be completed with the participation of a multilateral organization or export-credit agency as well as equity contributions for a 75/25 debt-to-equity ratio. The project will be required to meet the customary sizing criteria applied to wind projects, DSCR 1.30x for P9010-years and 1.00x for P991-year. The IDBG loan is expected to have a tenor of up to 15 years door-to-door. The project will have the security package customary for this type of project finance transactions.

Development Impact. The Project will have positive developmental impacts, such as: (i) adding 99 MW of renewable capacity to the Argentinean grid, representing 15% of the total current NCRE installed capacity, thus decreasing thermal and hydro generation reliance and contributing to the 20% goal of NCRE by 2025; and (ii) displacing approximately 216,234 equivalent tons of carbon emissions per year. Financial additionality is strong as the tenor of the financing is 15 years door to door, a long tenor that is critical for the financial viability of this type of infrastructure projects, and which is simply not available in the local capital markets. Commercial banks have not structured project financing transactions in Argentina for the last 10 years and hence the participation of multilateral and bilateral agencies in this first round of the RenovAR program will be key to its success.

For inquiries, comments and information requests about the project

Request information

Learn more about how we provide private-sector solutions in the region.

Environmental and social review

IDB Invest conducts an environmental and social due diligence (ESDD) commensurate with the nature, scale, and stage of the project, and with its level of environmental and social risks and impacts. The ESDD will confirm the project E&S categorization and assess the project with respect to the client requirements in IDB Invest Environmental and Social Sustainability Policy. The results of the ESDD, including any identified gaps are described in the Environmental and Social Review Summary (ESRS) provided below. Any gaps with respect to the IDB Invest Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) provided below.

ENVIRONMENTAL AND SOCIAL REVIEW SUMMARY

88.6 Kb

ENVIRONMENTAL AND SOCIAL REVIEW-LA CASTELLANA-SPANISH

329.8 Kb

Client files

This section provides the key environmental and social assessment documents produced by the client for this project.

EIA PARQUE EOLICO LA CASTELLANA 0.PDF

24.8 Mb

EIA PARQUE EOLICO LA CASTELLANA ANEXOS 0.PDF

79.2 Mb

For inquiries, comments and information requests about the project

Request information

Learn more about how we provide private-sector solutions in the region.

Contact information

For inquiries, comments and information requests about the project

Request information

Alternatively, you may also use the following contact information:

Client Contact

CONTACT NAME

Nicolas Macchi

POSITION

Finance

PHONE NUMBER

+54 (11) 4317-5000 (int. 2447)

EMAIL

nicolas.macchi@centralpuerto.com

IDB Invest Contact

EMAIL

requestinformation@idbinvest.org

PHONE

+1(202)-566-4566

ADDRESS

1350 New York Ave NW, Washington, DC 20005

COUNTRY OFFICES

IDB Invest Country Offices