Active Development AidData Chinese Aid

[China Co-Financing Fund] IDB approves 13.9 million USD loan from CHC for Arica I Solar PV Project

$13.9M USD

Funder	People's Bank of China (PBC)
Recipient Organization	Arica Solar Generación 1 Limitada
Country	Chile
Start Date	Dec 16, 2014
End Date	Aug 30, 2026
Duration	4,275 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`85346`

Grant Description

[China Co-Financing Fund] IDB approves 13.9 million USD loan from CHC for Arica I Solar PV Project On 16 December 2014, the Inter-American Development Bank (IDB) approved loan financing for the Arica I Solar PV Project, which would include 27.7 million USD from IDB's ordinary capital (Loan 3404A/OC-CH), 13.9 million USD from the People's Bank of China via the China Co-Financing Fund for Latin America and the Caribbean (CHC) (Loan 3404/CH-CH), and 8.5 million USD from the Clean Technology Fund (Loan 3404/TC-CH).

However, the IDB lists this project as cancelled, and it does not appear a loan contract was signed. The IDB refers to this project as "CH-L1079 : Arica I Solar PV Project". Arica Solar Generacion 1 was the planned recipient of this loan financing.

The Arica I Solar PV plant was to be located in the Atacama Desert region, approximately 26 km east of the city of Arica, and was expected to have a 44.46 MW capacity.

The project was also expected to include an 18 km, 66 kV transmission line (Línea de Alta Tensión 66 kV Pampa Dos Cruces) that would connect to the Parinacota Substation, owned by Empresa de Transmisión Eléctrica (TRANSEMEL).

The project was supposed to support the country's power matrix by linking to the Sistema Interconectado Norte Grande (SING), reducing the reliance of SING on thermal energy and help meet growing demand on this part of the energy matrix. SK Ecologia, a subsidiary of Chilean company Sigdo Koppers, was to be responsible for project implementation.

The Arica Health Service was to help with hiring contractors to maintain environmental regulation compliance.

This project is linked to a China Development Bank (CDB) loan (see Record ID#37304) and an investment from Sky Solar (see Record ID#37358), which were intended to fund multiple solar projects in Chile, including this one.

The statuses of these flows are unclear, given that they were directed generally at solar plant construction by Sky Solar in Chile, and no evidence can be found of plant construction to date, only a handful of pre-existing plant acquisitions.

📋 Staff Comments

Although the IDB marks the project as cancelled, project status has been set to Pipeline: Pledge. While the loan was authorized, it does not appear a loan contract was ever signed. Thus, because the funds were never committed, the project status cannot be coded as 'cancelled'.

📚 Sources & References

Chile to expand use of non-conventional renewable energy sources with IDB support
Case No. 17-cv-4572-LTS-DCF - Ronald Peña, et al. v. Sky Solar Holdings
Ltd. , et al.
SKY SOLAR HOLDINGS
LTD. FORM 20-F ANNUAL REPORT FISCAL YEAR ENDED DECEMBER 31, 2015
Embajador Yang Wanming Inauguró el Primer Proyecto de Inversión China en Generación de Energía Fotovoltaica
Chile: Sky Solar breaks ground on 18 MW PV project
Sky Solar Holdings
Ltd. Form F-1 (Prospectus)
CH-L1079 : Arica I Solar PV Project
Milestones - Sky Solar Holdings
Sky Solar to expand PV plant in Chile by 8 MW
Environmental and Social Management Report (ESMR) - ARICA I SOLAR PHOTOVOLTAIC POWER PROJECT (CH-L1079)
DECLARACIÓN DE IMPACTO AMBIENTAL - PROYECTO “PLANTA SOLAR FOTOVOLTAICA ARICA I”
RESOLUTION DE-219/14
ARICA 1 SOLAR PHOTOVOLTAIC (PV) POWER PROJECT PROJECT ABSTRACT
Sky Solar Holdings Homepage
Sky Solar Announces Project Financing Packages
Sky Solar Announces Acquisition of 24 MW of Solar Projects in Chile
Sky Solar Chile adquiere la planta fotovoltaica Silva Solar
CH-L1079 : Arica I Solar PV Project Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.