US$28 million for thermal plant in Uruguay

(Caracas, April 9, 2007).- The Andean Development Corporation (CAF) approved a US$28-million loan in favor of Administración Nacional de Usinas y Trasmisiones Eléctricas (UTE), which, jointly with a parallel loan operation for US$14 million from Citigroup, will partially finance execution of the third phase of the Punta del Tigre Thermal Plant Project in San José department in Uruguay.

CAF president & CEO Enrique García explained that the approval was part of the Corporation’s efforts to improve the quality of life of the population of Latin America.

The objective of the project is to contribute to the stability, security and reliability of the Uruguayan national electricity system, and reduce the probability of electricity supply failures by incorporating thermal backup equipment into existing generating capacity, with construction of the Punta del Tigre thermal plant of 300 MW of firm installed capacity.

The project is being built in three phases. In the first stage, which consisted of Phases I and II already executed, the first four generating units were completed with a total of 200 MW of firm installed capacity, and the transmission line, oil pipeline and two gasoil storage tanks were built. In Phase III, currently in execution, instrumented by an extension of the agreement with the supplier, a further 100 MW will be added to the plant. The total cost of the plant and accessory works is US$165.4 million, of which the CAF loan represents 17%. Citigroup is financing 55%, and the remaining 28% comes from UTE’s own funds.