CAF approves Usd 94.8 million for San Jose Hydroelectric Power Plant Project

(Jan. 10, 2014)CAF-development bank of Latin America-and the Ministry of Planning and Development of the Plurinational State of Bolivia signed an accord opening up USD94.8 million in CAF-arranged financing to develop the San Jose hydroelectric power generator in the Cochabamba Department. CAF's representative director in Bolivia, Emilio Uquillas, and Planning and Development Minister, Viviana Caro, signed the agreement.

The project aims to add 123.5 MW in generating capacity to the National Interconnected System (SIN) via the installation of two hydroelectric power producers (San Jose I and San Jose II at 54.9 MW and 68.6 MW, respectively), with the goal to ensure normal electricity supply in the country.

The country's National Interconnected System 2011-2021 Optimal Expansion Plan deems the San Jose hydroelectric project as the most beneficial to the country's wellbeing by making good use of waters flowing through existing plants at Corani and Santa Isabel.

The total cost of the project, scheduled for a 2016 startup, comes to USD244.83 million, of which CAF financing will represent 38.7 percent. Bolivian counterparties will finance the remaining amount.

San Jose will increase the country's power reserves and will improve the stability and reliability of the national grid. The project will also save the country 7.8 billion of cubic feet of gas by replacing thermal generation with hydroelectric production, thus increasing capacity for natural gas exports and generatinge over USD52 million a year in fresh revenues based on 2011 prices.

The project will also help diversify the Bolivian energy grid by increasing the use of renewable energy supply and will hike capacity to provide sound electricity coverage at the national level by increasing SIN energy reserves.

San Jose will account for roughly 9 percent of the country's current generating capacity and 25 percent of Bolivia's hydroelectric power production, making the broader Corani-Santa Isabel-San Jose power complex the largest in Bolivia once the expansion is complete, accounting for 20 percent of the country's current generating capacity.