Alto Maipo SpA (DFC-2017-ALTOMAIPOSPA)

Countries
  • Chile
Where the impacts of the investment may be experienced.
Specific Location
Metropolitan Region
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • US International Development Finance Corporation (DFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Bank Risk Rating
A
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jun 5, 2020
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Alto Maipo SpA (AES Gener S.A.,Chile - Subsidiary of AES Corporation, Virginia)
The holder of the loan, grant, or other investment.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Potential Rights Impacts
  • Cultural Rights
  • Healthy Environment
  • Housing & Property
  • Labor & Livelihood
  • Right to Health
  • Right to Water
Only for projects receiving a detailed analysis, a broad category of human and environmental rights and frequently at-risk populations.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Loan Amount (USD)
$ 250.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 2,000.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Bank Documents
Primary Source

Original disclosure @ DFC website

Updated in EWS Jun 14, 2020

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Project Description

The development, construction and operation of a 531 MW runof-river hydroelectric power plant approximately 50 kilometers east of Santiago, the capital of Chile. The Project will be a key generation facility for Chile and reduce electricity costs as well as greenhouse gas emissions in the country’s central interconnected grid, a system that has become increasingly reliant on coal and diesel generation plants.

Early Warning System Project Analysis

The Project has been screened as Category A because potential impacts are diverse and potentially irreversible. In addition to impacts and risks associated with large construction and civil works (e.g., noise, dust, traffic, vehicle and equipment emissions, solid and hazardous waste management, and occupational health and safety), environmental concerns are related to tunneling activities such as noise, vibration and waste rock disposal; impacts on water quality due to construction works in river channels and contaminated run-off from waste rock piles; and potential impacts on terrestrial and aquatic biodiversity during construction and on aquatic biodiversity during operation as a result of reduced or diverted flow. Occupational health and safety risks associated with tunneling, such as the potential for cave-ins and collapse, and degraded air quality.

People Affected By This Project

As of March 2020, the UN Committee on Economic, Social, and Cultural Rights (CESCR) is reviewing the impacts of the Alto Maipo Hydroelectric Project, which has put Chileans’ fundamental rights at risk. These include the rights to water, food, housing, health, and culture. Communities claim that they have never been adequately consulted, despite the fact that the project has jeopardized the environment in the area where they live and violated fundamental human rights for many years, raising grave concerns about the project’s impacts for more than a decade.

http://www.ciel.org/news/un-body-calls-out-alto-maipo-hydroelectric-project-for-negative-impacts-on-chileans-economic-social-and-cultural-rights/

Investment Description
  • US International Development Finance Corporation (DFC)

Loan, up to $250 million with a term of up to 20 years

Private Actors

Borrower: Alto Maipo SpA, owned by AES Gener (60%) and Antofagasta Minerals S.A., AMSA (40%)

US Sponsor: AES Gener S.A. (Chile), a subsidiary of AES Corporation (Virginia, USA)

Foreign Sponsor: Antofagasta plc. (UK), through Antofagasta Minerals S.A.(Chile), a wholly-owned subsidiary

 

Contact Information

Not available