[China Co-Financing Fund] IDB Invest administers $4.6 million loan from CHC for Xoxocotla Solar PV Plant

[China Co-Financing Fund] IDB Invest administers $4.6 million loan from CHC for Xoxocotla Solar PV Plant In January 2020, IDB Invest, a member of the Inter-American Development Bank Group (IDB), provided a financing package of $17.2 million in loans to X-Elio for the construction and maintenance of the Xoxocotla solar photovoltaic plant.

The financing package included a 4.6 million USD loan from the China Co-Financing Fund for Latin America and the Caribbean, as well as USD 9.3 million of IDB Invest's own funds and USD 3.3 million of blended financing from the Canadian Climate Fund (C2F).

The Xoxocotla PV plant will be located in the municipality of Ayala, in the state of Morelos, and will have a 70MWAC capacity.

It is hoped to displace the equivalent of 1.6 million tons of carbon dioxide over the next 20-years and is part of the Government of Mexico's goal of increasing the percentage of the country's electricity generated through clean energy.

X-Elio was awarded a long-term Power Purchase Agreement (“PPA”) for the plant by the Mexican Federal Electricity Agency, Centro Nacional de Control de Energía (“CENACE”) in September 2016.

Under this agreement, X-Elio will sell electricity from the plant to the national grid of the Federal Electricity Commission (CFE) under a 15-year contract, while also selling clean energy certificates over a 20-year period.

In addition to the financing mobilized by IDB Invest, the project received a second loan of $13.9 million provided by the Spain's Institute of Official Credit (ICO) and a third loan of $8.3 million from the Bank of Tokyo (MUFG Bank Ltd).