The Corporacion Andino de Fomento (CAF) Thursday approved a US$140 million loan to Colombian power company Isagen SA, to finance construction of a hydroelectric plant.
The planned 820-megawatt capacity plant will be situated on the Sogamoso river, and will cost COP4.5 trillion in total.
The Andean development bank’s CEO, Enrique Garcia, stated that “it is very important to help strengthen Colombia‘s energy sector since the latter, besides being key to the economic and social development of the country, has been prioritized by the national government with a view to it reaching world-class level.”
The state-owned power company plans to borrow a total of COP2.7 trillion (US$1.34 billion) to build the plant, from local banks, foreign state development banks and multilateral lenders. It has already secured COP450 billion from local bonds sold in September and plans to sell COP400 billion more, reports Dow Jones.