Odebrecht Latinvest, Odebrecht Group subsidiary dedicated to infrastructure concessions in Latin America, concluded this Thursday (25) the sale of the Chaglla Hydroelectric Plant in Peru to China Three Gorges Corporation (CTG).
The sale was concluded with the transfer to CTG of the equity interest held by OLI in Empresa de Generación Huallaga (EGH), which operates Chaglla. CTG leads a consortium formed by Hubei Energy Group Co. Ltd., Ace Investment Fund II LP and CNIC Corporation Limited.
Chaglla Hydroelectric Plant is the third largest hydroelectric plant in Peru, with installed capacity of 456 MW, six percent of the country's total power generation. It is a project 100% financed by the private sector, led by Odebrecht.
The construction has characteristics that make not only Odebrecht proud, but also the engineering industry in Peru and Brazil. Its concrete face rockfill dam is the second tallest in the world, with a height of 211 meters. It also was the first hydroelectric plant in Peru to achieve a score of excellence (4.21 out of 5) in the Sustainability Protocol of the International Hydropower Association (IHA). During its construction, it also was considered a model of sustainability excellence by the Inter-American Development Bank (IADB). This is a clear example of how we contribute to the sustainable development of the regions where we operate.
The conclusion of the sale of Chaglla is a very important step in our divestment program in Peru for ensuring our financial equilibrium. The proceeds will be used primarily to settle the debts of OLI with local banks and suppliers. Another part will be destined to what in Peru is called a fideicomisso, a fund created by the government to ensure the payment of civil reparations, in connection with the cooperation agreement with Peruvian authorities.