LatAm's largest thermo project set for US$200mn IFC loan

Tuesday, October 10, 2017

The International Finance Corporation (IFC) is considering a US$200mn loan for Brazil's 1.5GW Porto de Sergipe thermoelectric plant, Latin America's largest gas-fired power generation project.

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The World Bank affiliate is expected to approve the operation during a meeting of its board on December 7, according to documents published on the lender's website.

Located in Barra dos Coqueiros in Brazil's northeast, Porto do Sergipe I is being developed by special purpose vehicle Centrais Elétricas de Sergipe (Celse).

According to the IFC, the project's total cost is estimated at US$1.8bn, up to 80% of which will be financed with debt.

SEE Latin America's largest early stage thermoelectric projects here

Celse, a joint venture between EBrasil Energia and Golar Power, secured 25-year power purchase agreements from the plant with 26 distributors at a regulated market auction in 2015.

The project also includes an associated 33km transmission line, an LNG floating storage and regasification unit (FSRU) and a submarine gas pipeline.

In August, Celse said the plant remained on track to be completed in January 2020 after it received an environmental permit from Sergipe state's environmental watchdog Adema.

According to Golar, the consortium's financing commitments are expected to be tied up by December.