IDB Invest finances green transmission line project in Uruguay

Author: Rennett Stowe. License: Creative Commons, Attribution 2.0 Generic.

September 24 (Renewables Now) - IDB Invest, the private sector arm of the Inter-American Development Bank (IDB), has provided USD 87.6 million (EUR 74.7m) to back the construction of new green transmission lines in Uruguay.

The grant was given to Uruguay’s Financial Trust for the closing of the 500-kV Transmission Ring, the bank said on Tuesday.

The project envisages the design, construction, operation and maintenance of a 500-kV transmission line with a length of 365 km (226.8 miles), a brand new substation and the reinforcement of an existing one. The line will interconnect the substations at the departments of Tacuarembo and Salto.

This initiative also marks IDB Invest’s first issuing of a certificate for green transmission lines in the world. Certification is given to projects that transport energy from renewable sources, such as wind, hydro, solar and sustainable biomass, among others.

IDB Invest is providing a loan of USD 67.6 million, while the remaining USD 20 million comes from the mobilisation of donor funds managed by the bank.

With a total cost of USD 204 million, the financial plan will be completed with capital contributions from the sponsor, the National Administration of Power Plants and Electric Transmission (UTE) and with a local bond issue, IDB Invest noted.

(USD 1.0 = EUR 0.854)

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Lucas is based in Brazil. He joined Renewables Now to expand coverage of the Ibero-American market, a highly attractive destination for green energy investment.

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