Itelecom Energy Efficient Street Lighting (IIC-11620-01)

Countries
  • Chile
Geographic location where the impacts of the investment may be experienced.
Specific Location
Melipilla, Cartagena, San Javier, Villa Alemana, and Coyhaique
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.
Bank Risk Rating
C
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 21, 2016
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
Inversiones y Asesorias en Telecomunicaciones e Informatica S.A.
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)
$ 10.00 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.
Project Cost (USD)
$ 15.00 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.
Primary Source

Original disclosure @ IIC website

Updated in EWS Jun 22, 2017

Disclosed by Bank Sep 21, 2016


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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.
The proposed loan will support Itelecom in developing and installing high efficiency LED technology for public street lighting in Chilean municipalities under a third party, structured financing model. The municipalities expected to be included in the program will be Melipilla, Cartagena, San Javier, Villa Alemana, and Coyhaique. The use of blended climate finance will enable the demonstration of a highly scalable and replicable financing model in the municipal street lighting sector in Chile and throughout the LAC region. The energy efficiency projects will reduce energy consumption and therefore lighting expenses, providing monetary savings to the municipalities. The main project outputs will be the replacement of approx. 37,700 luminaires with high efficiency LED technologies. The main outcomes of the project include reductions in energy costs, energy use, and GHG emissions in the municipal public lighting systems. The IIC states that the project will reduce CO2 emissions across the three municipalities by more than 70,000 tons over the first 10-years of useful life of the fixtures. The lighting system’s electricity consumption will be reduced by approximately 55 percent, saving over 100,000 MWh over the same period. The project will also increase luminosity by more than 100%, improving the quality and quantity of street lighting. The project consists of mainly retrofitting existing public municipal lighting systems (about 95% of total installations) in urban and suburban areas. The principal risk of this project is likely connected to the installation activities for the retrofit and the implementation of adequate procedures for waste management and disposal specifically of high-pressure sodium (HPS) lighting during installation activities. The proposed operation is categorized as a Category C according to the IIC’s Environmental and Social Sustainability Policy, as it is likely to result in very limited or no adverse environmental or social impacts or risks.
Investment Description
Here you can find a list of individual development financial institutions that finance the project.
The Project consists of a senior IIC A loan of up to the Chilean peso equivalent of US$10M with a 9-year tenor and 1-year grace period. The total project costs are expected to be approximately US$15M and the structure includes a first-loss guarantee of up to US$6.05M from the Clean Technology Fund (CTF).

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.
For inquiries about this project, contact divulgacionpublica@iadb.org. ACCOUNTABILITY MECHANISM OF IIC 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 (IIC)-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 IIC 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