Funds for Venezuelan electricity system

(Caracas, June 30, 2010). As part of the CAF strategy of supporting development in Venezuela, a US$165 million loan for the national electricity system was announced, specifically for the Termozulia III project.

The Project, which CAF has backed since 2009, is being executed by C.A. Energía Eléctrica de Venezuela (Enelven) – subsidiary of Corpoelec, with the objective of increasing the reliability and autonomy of the Western Electricity System and meeting growing demand for the service in Zulia state.

CAF President & CEO Enrique García said, "availability of a reliable and safe electricity service is a determining factor for competitiveness because it underlies development of productive and economic activity in a country, which is why CAF backs this type of strategic investment project for the electricity sector for Venezuela and for the other countries of Latin America."

The Termozulia III Project is located in the La Cañada de Urdaneta municipality, Bajo Grande sector of Zulia state, in the General Rafael Urdaneta Thermoelectric Complex.

The project involves construction of a thermoelectric generating plant with 470 MW installed capacity with combined-cycle technology which achieves great energy efficiencies by generating substantial amounts of additional electricity with the same amount of fuel. The plant will be able to operate using alternative fuels such as natural gas or diesel.

The Project is part of the National Electric Sector Development Plan (PDSEN), which will bring an additional 16,195 MW into the National Electricity System for the 2005-2015 period.

"During the last five years CAF has approved over US$3 billion in favor of the Bolivarian Republic of Venezuela; and in 2010, approval is expected of approximately US$1.5 billion for projects in the electricity sector, mass transit, water and social action" García said.