A supplementary loan of US$800M has been given to help complete the project under construction on the Caroni river. The funds are to be used for primary civil works and also to replace part of the original local counterpart financing and partly cover increased costs, said IADB.
The bank added that the additional loan would help ensure the financial stability of the 2160MW project. The loan has a six-year grace period, 20-year term and an adjustable interest rate.
The second IADB follows a loan of US$750M awarded in 2005.
Manuel Piar is being developed by state-owned utility CVG Electrificacion del Caroni (Edelca) as the final major plant in the river cascade. Initial river diversion took place in 2002.
The plant will have 10 units commissioned over 2012-14, and when fully operational is expected to generate about 12,100GWh of electricity per year. Impsa was awarded the Kaplan turbine and generator contract early last year. The procurement process started in 2004.
Earlier this year the bank agreed to a US$14M loan to help the Government improve the management of the Lower Caroni catchment.
