US$600 million to strengthen electricity system of western Venezuela

(Caracas, August 18, 2009).- CAF approved a US$600 million loan for the Bolivarian Republic of Venezuela to finance the Termozulia III Thermoelectric Project, to be executed by C.A. Energ�a El�ctrica de Venezuela (Enelven) – subsidiary of Corporelec. The objective is to increase the reliability and autonomy of the Western Electricity System, and meet growing demand for the service in the area.

"With these funds -- CAF President & CEO Enrique Garc�a said - we are again supporting development of the energy sector which results in a better geographical diversification of electricity infrastructure in Venezuela, and improves the reliability of the national electricity service." He emphasized the positive impact of the project on expansion of the Venezuelan productive sectors. "An efficient energy platform is indispensable for building sustainable and quality economic growth."

The chief of the multilateral organization added, "the Project is considered strategic because it increases the reliability and autonomy of the Western Electricity System by meeting the growing demand in Zulia state." It also uses combined-cycle technology which achieves significant gains in energy efficiency by generating significant additional quantities of power from the same quantity of fuel.

The CAF financing, which will be instrumented through separate loan agreements, covers 78% of the cost of the project, which totals US$765.14 million. The remainder will be covered by other sources of finance. According to the proposed timetable, the new plant will come on line in late 2012.

The Termozulia III Project covers engineering, equipment and materials procurement, including construction of the thermoelectric generating plant and installation of transformers and transmission lines. The plant will operate using natural gas and diesel as alternative fuels. The project is located in the Rafael Urdaneta thermoelectric complex in La Ca�ada de Urdaneta municipality, Bajo Grande, Zulia state,.