Company name

Difebal S.A.

Project number

12041-01

Category B projects have potential environmental and/or social impacts and risks that are less adverse than those of a Category A and which are generally limited to the project site, largely reversible and can be mitigated via measures that are readily available and feasible to implement in the context of the operation.

E&S category
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B

Country

Uruguay

Sector

Energy

Status

In implementation

Disclosed date

04/03/2017

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

Projected board date
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05/09/2017

Approval date

05/09/2017

Signed date

07/13/2017

Sponsoring entity

N/A

Team leader

Garcia Giron, Carlos Manuel

Investment type

Financing requested

N/A

Syndicated amount

USD $ 42,857,000

Financing amount

USD $ 38,096,000

Currency

USD

Project scope and objective

The Uruguayan national utility, Usinas y Trasmisiones Electricas (“UTE”) launched in July 2016 the bidding for the construction of a 213Km transmission line of 150Kv connecting the substation of Melo, with the station of Tacuarembó in the north-east of the country (the “Project”). This represents the first of several projects, which will be launched aiming to improve and upgrade the existing transmission network in the country. After an international bidding process, the Project was awarded in July to the Italian transmission company Terna S.p.A (“Terna”), a BBB rated company by S&P, a leading player in the European market with more than 15 years of experience in the construction of transmission lines.

The Project is structured under an Operating Lease, by which Terna, through a special purpose vehicle (“SPV”), Difebal S.A., will design and construct the transmission line, and once commercial operation is reached, UTE will carry out the operation and maintenance of the Project, and will pay Terna a monthly payment for 30 years as per the terms and conditions of the lease.

The estimated total cost of the Project is of up to US$100 million, which will be financed through an IDBG A/B loan consisting of an IIC A loan of up to US$10 million and IDB A loan of up to US$30 million, a China Fund Loan of US$20 million and a B loan of US$25 million to be provided by one commercial bank. The financial plan will be completed with equity contributions for an amount of US$15 million for 85/15 debt-to-equity ratio. Both the A and B loan tranches are expected to have a tenor of up to 15-years door-to-door.

The Uruguayan company SACEEM was contracted by Terna to carry out the design, supply, construction, and electromechanical assembly work on all Project components.

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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

42.8 Kb

Client files

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

ESTUDIO DE IMPACTO AMBIENTAL

9.4 Mb

PLAN DE GESTIÓN AMBIENTAL DE CONSTRUCCIÓN

7.6 Mb

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Contact information

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