Colombia’s holding company Colinversiones SA borrowed US$150 million from three development agencies to upgrade its gas-fired Termoflores power plant when the country is more dependent on thermal power because of fewer rainfalls.
The Andean multilateral lender Corporacion Andino de Fomento, or CAF, will lend $62.5 million, the International Finance Corp., the World Bank’s financial arm, will also lend $62.5 million, and Germany’s DEG, will lend the remaining $25 million, Colinversiones said in a statement.
The company will use the money to partly finance the $188 million project to boost the capacity of Termoflores to 610 Megawatts in late 2010 from the current 441 MW.
Two thirds of the country’s capacity is provided by hydropower plants. In the past few months, the level of water in the country’s reservoirs has fallen because of scarce rainfalls. As a result, thermal plants are providing more electricity, Fernando Rico, the chief executive of power company Isagen SA (ISAGEN.BO), recently said.