According to the International Finance Corporation, this project consists of the construction and operation of a 378-megawatt thermal power plant at the port of Acajutla, a marine terminal, a natural gas pipeline, and a 44 km 230 kilovolt transmission line, and substations.
The power plant will be located in a port in which development or expansion may be complicated by the presence of potential presence of a hazardous substance, pollutant, or contaminant (brownfield port). It will have 19 Wärtsilä 18V50SG internal combustion reciprocating engines with capacity of 18.9 MW each, and a combined steam cycle system that will use the exhaust gases of the engines to produce an additional 26 MW.
The marine terminal will consist of a floating storage regasification unit (FSRU) permanently moored for liquified natural gas delivery, storage, and regasification located approximately 1.2 km offshore. It will have a restricted catenary mooring system and a dedicated FSRU which will allow for the transfer of liquified natural gases.
The transmission line between the Electricity Transmission Company (ETESAL) substations of Acajutla and Ahuachapán will have approximately 139 towers and a 38 meter area to construct and maintain the towers.
According to the International Finance Corporation's analysis, key Environmental & Social impacts potentially associated with this project include air emissions, environmental noise, construction related impacts, land and marine biodiversity, Greenhouse Gas emissions, impacts to fishers, land acquisition, security management, labor and community related impacts and health and safety risks during construction and operation.
The International Finance Corporation's proposed investment consists of a direct loan of US$ 100 million, a USD$ 40 million credit guarantee, and a US$ 425 million loan syndication with multiple lenders.
The Inter-American Development Bank detailed the private actor relationship in the following paragraphs: "The Invenergy Clean Power El Salvador, Ltda. de C.V. (“ICPES”) and Quantum Energy S.A. de C.V. (“Quantum”) are the shareholders of Energía del Pacífico Ltda. de C.V. (“EDP”), the project company. ICPES owns 85% of EDP’s shares and Quantum owns the remaining 15%.
ICPES is 76.5% owned by wholly owned subsidiaries of Invenergy Clean Power LLC (“Invenergy”), 17.6% owned by Calleja, S.A. de C.V. and 5.9% owned by VC Energy De Centro America S.A. Founded in 2001, Invenergy develops, owns and operates power generation and energy storage facilities around the world, carrying out mainly clean energy projects (wind, solar, natural gas, cogeneration and energy storage) in North America and Europe, and more recently in Latin America.
Quantum was founded in 2009 and is a private company incorporated in El Salvador. Quantum’s objective is to participate in public tenders in Central America through the development of projects in the energy market."
As of the time of writing, Quantum Energy S.A. de C.V., Invenergy Clean Power El Salvador, Ltda. de C.V., Calleja S.A. de C.V. and VC Energy De Centro America S.A. do not have a presence online.
The following firms are also involved in advising for the project:
- Sargent & Lundy Consulting (Lenders’ Engineer)
- INDECS Consulting Limited (Insurance Consultant)
- PSR-INC Energy Consulting (Market Consultant)
- Norton Rose Fulbright US LLP (New York Counsel)
- Romero Pineda Asociados (El Salvador Counsel).
ACCOUNTABILITY MECHANISM OF IFC
The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/