Uruguay: CAF signed a credit for USD 82.6 million with Gas Sayago
The loan will finance the construction of a gas pipeline and the dredging of the area where the regasification plant will be installed.
(Montevideo, May 2nd, 2014). CAF, Development Bank of Latin America, granted a credit for USD 82.6 million to Gas Sayago S.A. to finance diverse infrastructure works linked to the regasification plant that will be built off the coast of Montevideo.
The loan will be used by the company (a private company made up by state owned Administracion Nacional de Combustibles, Alcohol, y Portland ANCAP (National Administration of Fuels, Alcohol, and Portland), and the Administracion Nacional de Usinas y Trasmisiones Electricas UTE (National Administration of Power Stations and Electric Transmissions, to carry out dredging tasks, and the installation of a gas pipeline that will allow the connection of the plant to the national gas distribution network.
Gladis Genua, CAF's Director Representative in Uruguay, stated that, "signing this credit contract is in line with CAF's objective to support the energy policy in Uruguay, and to search for the diversification of its matrix, reducing generation costs and improving the quality of generation in environmental terms, an essential factor to promote economic growth in the country".
At the same time, Cesar Briozzo, Chairman of the Board of Directors at Gas Sayago S.A. stated that, "this CAF loan will allow us to complete two essential works for the regasification plant", which will "allow gas from around the world to reach Uruguay, and go from Uruguay to the rest of the region".
Briozzo explained that the resources will be used to "finish the dredging works of the canal for the ships to reach the regasification plant, and for a maneuvering area for methane tankers", which will imply dredging 17 million cubic meters of material. At the same time, the funds will be used for the construction of the gas pipeline that will transport gas from the plant to Punta Yeguas, and another conventional gas pipeline tranche that will take gas to the Cruz del Sur gas pipeline.
With respect to the support given to the development of local energy infrastructure, Genua highlighted that the financial institution has supported several projects promoted by UTE during the past few years. "We have financed the construction of the combined cycle thermal power plant in Punta del Tigre with USD 180 million, and granted a credit for USD 200 million to improve and expand the electric energy distribution network, among other relevant project for the development of the country", she stated.
The regasification plant will contribute to expand the available energy supply in the country, improve the use of energy in environmental terms, and reduce the cost of generation. It will have the capacity to produce 10 million cubic meters of natural gas daily, and is expected to start the regasification of natural gas in mid-2015.
CAF's more recent content
CAF, ECLAC, IDB and PAHO Promote Sustainable Development in the G20
The Regional Organizations of the Americas congratulate Brazil on its successful G20 Presidency, highlighting its leadership on key issues such as poverty, governance, and climate change. They also reaffirm their commitment to actions that promote equity and development in the region.
Urgent Call for Action to Safeguard Caribbean SIDS at CAF Symposium
As the global community grapples with the escalating climate crisis, Caribbean Small Island Developing States (SIDS) are running out of time to secure critical investments and support needed to strengthen their economies and protect vulnerable communities from the intensifying impacts of climate change. With the window to take decisive action rapidly shrinking, CAF - Development Bank of Latin America and the Caribbean, in partnership with the Commonwealth Secretariat and the Antigua and Barbuda High Commission, brought together key stakeholders for a symposium in London to address the critical vulnerabilities Caribbean SIDS face.