USD 50 million loan for strengthening Peruvian electricity system

(Lima, September 30, 2010).- CAF approved and signed a loan contract for up to USD 50 million in favor of Abengoa Transmisión Sur, S.A., a subsidiary of Abengoa S.A., to partially finance the construction, operation, and maintenance of the “Chilca-Marcona-Montalvo Transmission Line Project.”

CAF’s director in Peru, Eleonora Silva Pardo, emphasized that the resources from this operation will be earmarked for a project that is relevant for the country, as its purpose is to cover electricity supply needs in the southern region of Peru and also make Peru’s electricity system more reliable.

“The availability of a safe, reliable electricity service is a determining factor for promoting the development of this country’s productive and economic activities,” said Silva Pardo.

She also pointed out that this important electricity transmission line covers the regions of Lima, Ica, Arequipa, and Moquegua and that, when it joins up with the Center-North-mid-Zapallal-Trujillo transmission line –recently given in concession-, it will interconnect nearly the entire Peruvian coast with a 1,600 km line.

The project consists of a 500 kV single ternary transmission line that will cover 900 km, linking up the Chilca (south of Lima), Marcona, Ocoña, and Montalvo (Moquegua) substations. It also contemplates the Chilca Nueva (500/220 kV - expansion), Marcona Nueva (500/220 kV), Ocoña (500/220 kV), and Montalvo 2 (500 kV) substations.

Abengoa is a technology company that applies innovative solutions for sustainable development in the infrastructure, environment, and energy sectors. It is traded on the stock exchange and has a presence in more than 70 countries, where it operates with its five Business Groups: Solar Energy, Bioenergy, Environmental Services, Information Technology, and Industrial Engineering and Construction. Abengoa is a leader in the construction and preventive and corrective maintenance of high and very high voltage transmission lines in Peru.