Corporacion Nacional del Cobre de Chile - CODELCO Renewable Energy PPAs (MIGA-15168)

Countries
  • Chile
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Multilateral Investment Guarantee Agency (MIGA)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
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
May 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
Credit Agricole Corporate and Investment Banking
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Mining
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 765.00 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.
Bank Documents
Primary Source

Original disclosure @ MIGA website

Updated in EWS Sep 22, 2024

Disclosed by Bank Jul 31, 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 Bank’s website, MIGA signed a US$765 million guarantee effective July 1, 2024, providing Non-Honoring of Financial Obligations by a State-Owned Enterprise (NHFO-SOE) coverage to Crédit Agricole Corporate and Investment Bank (Crédit Agricole CIB) for their 15-year non-shareholder loan to Corporación Nacional del Cobre de Chile (CODELCO).

MIGA’s NHFO-SOE instrument is enabling Crédit Agricole CIB to extend a long-term loan that will be used to support CODELCO’s payment obligations under five renewable energy power purchase agreements (PPAs) with third-party private producers that supply electricity to CODELCO (the Project). 

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The Project is considered Category B under MIGA’s Policy on E&S Sustainability (2013), as it considered to entail business activities with potential limited adverse environmental or social risks and/or impacts that are few in number, generally site-specific, largely reversible, and readily addressed through mitigation measures.  

The risks associated with the Project relate to CODELCO’s institutional capacity to effectively implement its corporate environmental and social management system in accordance with MIGA E&S Performance Standards (PSs), in the context of Project. 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

A US$765 million guarantee.

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.

Crédit Agricole Corporate and Investment Bank, known as Crédit Agricole Indosuez from 1996 to 2004 and as Calyon from 2004 to 2010, is the corporate and investment banking entity of the Crédit Agricole banking and financial services group, based in Montrouge near Paris, France.

As the largest state-owned enterprise in the strategic copper mining sector and Chile’s largest electricity consumer and most carbon-intensive entity, CODELCO is a driving force in Chile’s sustainability goals to become carbon-neutral by 2050 and in promoting the clean production of copper which is a mineral critical to the energy transition. 

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Crédit Agricole Undisclosed -

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 additional information on the Project, please contact: 

Name & Title: Lucila Siskind (Treasury Director) 

Address:  Calle Huérfanos 12708340424 Santiago, Región Metropolitana, Chile 

E-mail:  lsiskind@codelco.cl 

Phone: + 56 9 91398787 

Name & Title: Pamela Carvajal (Finance Specialist) 

Address:  Calle Huérfanos 12708340424 Santiago, Región Metropolitana, Chile  

E-mail:  pcarv024@codelco.cl 

Phone: + 56 9 89057854 

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://www.miga.org/contact/access_to_information

You can also request general information about MIGA and for information on guarantees by emailing: migainquiry@worldbank.org

ACCOUNTABILITY MECHANISM OF IFC/MIGA

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

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How it works