The Andean Development Corporation (CAF) approved an 18-year US$600 million loan for the Bolivarian Republic of Venezuela to partially finance the Manuel Piar (Tocoma) Hydroeléctrica Plant Project, which is executed by CVG Electrificación de Caroní CA (CVG Edelca) with the objective of increasing the efficiency and reliability of the Venezuelan National Electricity System.
As Enrique García, president & CEO, explained \"the loan is an example of the institution’s support for the development of Venezuela because it contributes to improving the electricity supply in this member country and promoting the development of regional energy infrastructure.\" He emphasized the positive impact of the project on the expansion of productive sectors, adding that \"a modern logistics platform is indispensable for building sustained and quality economic growth.\"
Garcia said that the loan was the second granted by CAF for the project. The Corporation provided US$300 million in 2004 for the project, whose objective is to increase electricity generation by 15% to cover demand and improve the efficiency and reliability of the National Electricity System. The plant is part of a strategic plan to exploit the hydroelectric potential of the Caroní River in the south of Venezuela. The new plant will supplement the generating capacity of the Guri, Macagua and Caruachi plants, which are currently supplying 75% of the power consumed in the country.
The Manuel Piar (Tocoma) Hydroelectric Plant has a total cost of US$3.06 billion, of which CAF financing covers 30%, while the remaining 70% is financed from own resources and other multilateral sources.
The hydroelectric plant is the last power generating project of the Lower Caroní development. The project, which will have a nominal capacity of 2,160 MW, is expected to generate an average of 12,100 GWh/year, 14% of the total generated by the Lower Caroní hydroelectric development. The construction period, which has already begun, is planned to conclude in 2014. The operation of the plant will bring total nominal capacity of the entire complex to 16,130 MW, making it one of the world’s largest hydroelectric generating systems.
Since 1992, CAF has approved 10 loans totaling US$1.82 billion for projects executed by Edelca to increase power production and transmission in Venezuela. In Brazil it has financed construction of the transmission line to supply Venezuelan electricity to the border area.
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