Isagen to increase Miel I generation 15%

Colombian generator Isagen plans to increase annual generation at its Miel I hydro plant and restart operations at the Calderas plant with the resources from a bond issue planned for this year, CEO Luis Rico told BNamericas. The 396MW Miel I plant uses water from the Miel and Moro rivers, and Isagen plans to divert two more rivers to the reservoir to increase the annual 1,200GWh production by 15% to 1,380GWh, Rico said. Installed capacity will remain the same. Miel I started operations in December 2002 and is in Caldas department. The 26MW Calderas plant in Antioquia department has been out of action since December 1998 following a guerilla attack. Isagen plans to spend US$6mn to restart it, Rico said. The timing of both projects depends on Isagen's plans to issue bonds worth at least 400bn pesos (US$146mn) this year, Rico said. The bonds will be for 7-10 years, and although Colombia's national council for social and economic policy (Conpes) gave its authorization for the bonds this week, Isagen still has to complete more paperwork before being able to fix a definite date for the issue, Rico said. Resources from the bond issue will also be used to ease the pressure on Isagen's cash flow in 2004-2007, Isagen executive Juan Vasquez previously told BNamericas.