Matarani Solar Project (IDBI-14863-01)

Regions
  • Latin America and Caribbean
Geographic location where the impacts of the investment may be experienced.
Countries
  • Peru
Geographic location where the impacts of the investment may be experienced.
Specific Location
Arequipa, Mollendo, Chaparral; province of Islay; department of Arequipa
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
  • IDB Invest (IDBI)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Oct 30, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
GR Cortarrama S.A.C. (Yinson Renewables Peru Limited)
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 33.50 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 33.50 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Media Documents
Primary Source

Original disclosure @ IDBI website

Updated in EWS Sep 29, 2024

Disclosed by Bank Sep 26, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the ADB, the proposed financing involves a senior loan to GR Cortarrama S.A.C. to support the development, construction, and operation of a 96.75 MWp / 80 MWac solar photovoltaic power plant in the department of Arequipa, Peru. The IDB Invest loan will cover up to 33% of total project costs. The project's development objectives include promoting non-conventional renewable energy and reducing the country's reliance on hydroelectric and thermal energy generation.

The present operation consists of financial support to GR Cortarrama S.A.C, a subsidiary of Yinson Renewables Peru Limited ("Yinson", the "Client" or the "Company") for the development, construction, and operation of the Matarani Photovoltaic Solar Power Plant (MPSPP) and its related works, consisting of: i) a 96.75 MWp/80MW installed capacity photovoltaic solar power plant, which will evacuate the energy produced to the National Interconnected Electric System ("SEIN") through the existing Repartición – Mollendo 138 kV transmission line (L-1030); and ii) the Chaparral 22.9kV/138kV substation.

The Project is located on Route 30 or Interoceanic South, at an approximate distance of 54 km from Arequipa and 30 km from the coastal town of Mollendo, in the district of Mollendo, province of Islay, department of Arequipa, Peru. The MPSPP will generate around 260 GWh of renewable energy, which will meet the energy needs of approximately 62,000 Peruvian households and avoid the emission of more than 56,000 tons of CO2 per year.

The Project will have a 15-year Power Purchase Agreement with ENEL Peru, the largest power generator in the country. Grenergy Renovables will provide the engineering, procurement, and construction service and will be responsible for the operation and maintenance of the solar plant during the first two years, which the Client will continue thereafter. It is estimated that the Project will be operational in the third quarter of 2024.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by the IDB Invest, GR Cortarrama S.A.C. is a subsidiary of Yinson Renewables Peru Limited.

As stated on the company's website, Yinson is a global energy infrastructure and technology company.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
Actis LLP Parent Company Energy owns Niagara Energy S.A.C. Subsidiary Energy
Niagara Energy S.A.C. Parent Company Energy owns ENEL Peru S.A. Subsidiary Energy
Yinson Holdings Bhd Parent Company Energy contracts with ENEL Peru S.A. Buyer Energy
Yinson Holdings Bhd Parent Company Energy owns GR Cortarrama S.A.C. Client Energy

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

IDB Invest General Enquiries:

Email: requestinformation@idbinvest.org
Phone: +1(202)-566-4566
Address: 1350 New York Ave NW, Washington, DC 20005

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://www.iadb.org/en/access-information/information-request

ACCOUNTABILITY MECHANISM OF IDB / IDB INVEST

The Independent Consultation and Investigation Mechanism (MICI) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an Inter-American Development Bank (IDB) or Inter-American Investment Corporation (IDB Invest)-funded project. If you submit a complaint to MICI, they may assist you in addressing the problems you raised through a dispute-resolution process with those implementing the project and/or through an investigation to assess whether the IDB or IDB Invest is following its own policies for preventing or mitigating harm to people or the environment. You can submit a complaint by sending an email to MICI@iadb.org. You can learn more about the MICI and how to file a complaint at http://www.iadb.org/en/mici/mici,1752.html (in English) or http://www.iadb.org/es/mici/mici,1752.html (Spanish).

How it works

How it works