Perú: Partial credit guarantee for US$28 million approved for Olmos project in Peru

The Andean Development Corporation (CAF) approved a partial credit guarantee in favor of the Republic of Peru for US$28 million to back payment of its obligations to the Olmos project concession holder, Concesionaria Trasvase Olmos (CTO), under the control of Constructora Norberto Odebrecht, for a term of 19 years.

The concession holder will use the guarantee to back a private issue on the local capital market.

CAF President & CEO Enrique García said that the local issue by CTO would be a pioneer in financing a concession project executed by the government and a public/private partnership (PPP) initiative. He added that, for CAF, the support operation for Peru is part of current efforts to attract foreign investment and promote the development of basic infrastructure.

The CAF partial guarantee is additional to the US$50-million direct loan that the multilateral bank approved in favor of CTO, and the US$77-million loan in favor of the Republic of Peru, both to support the transfer canal works of the Olmos project in Lambayeque.