Innergex JV completes buy of 140 MW of Chilean HPPs

Canadian renewable power producer Innergex Renewable Energy Inc (TSE:INE) last week said that Energia Llaima, where it owns 50%, has completed the acquisition of the 140-MW Duqueco hydro complex in Chile.

The project includes the 85-MW Peuchen and 55-MW Mampil hydropower plants (HPPs), commissioned in 2001 and located on the Duqueco river to the east of Los Angeles city, Chile.

Net of an estimated USD 10 million (EUR 8.5m) of cash, the purchase price is about USD 210 million. A USD-130-million, 15-year term financing has been arranged and underwritten by South American bank Itau, the Canadian company said.

The news came a day after Innergex finalised the joint venture partnership through which it took a 50% stake in Chilean sector player Energia Llaima. Innergex invested an initial amount of USD 10 million and agreed to pour a further USD 100 million into Energia Llaima over a 12-month period. It now said that with its investments in the Duqueco hydro project its commitment to invest USD 110 million is almost reached.

The two HPPs sell their electricity under power purchase agreements (PPAs) at fixed prices until 2020 and on the spot market.

"We now have four facilities in Chile and we look forward to growing Energía Llaima and increasing our presence in the South American market by developing and acquiring other renewable energy facilities," said Innergex president and chief executive Michel Letellier.

(USD 1 = EUR 0.849)

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