Odebrecht Energia S.A., through its SPV, Empresa de Generación Huallaga S.A., closed financing for  the development, construction and project financing of the US$1.2 billion 406 megawatt Chaglla hydroelectric power generation project in Peru on July 5th, 2013.

The project financing raised a total of US$774 million in senior secured debt commitments, led by two anchor agency lenders: Banco Nacional de Desenvolvimento Econômico e Social - BNDES from Brazil and the Inter-American Development Bank (IADB).

BNDES and IADB made a direct loan of US$150 million. There were six other banks involved in the lending, including BNP Paribas, Sumitomo Mitsui Banking Corporation (SMBC) and Cofide (the Peruvian development bank).

The project was signed in December 2009 but it has suffered numerous delays.

Global law firm White & Case LLP has advised Odebrecht during financial closure.

The project:

The run-of-the-river plant is being constructed on the Huallaga River in the Chaglla and Chinchao districts of the department of Huánaco. The project consists of a 400 MW main power plant and a 6 MW auxiliary plant, a 127 kilometer long, 220 kilovolt transmission line, 34 kilometers of permanent access roads, a 202 meter concrete faced rockfill dam, a surface powerhouse and diversion, spillway and headrace tunnels.

The Hidroeléctrica de Chaglla project will be the country's second largest hydropower power facility, representing about 13 percent of the country's installed hydropower capacity once construction is completed by 2016. The plant is expected to prevent greenhouse gas emissions of approximately 467,000 metric tons of carbon dioxide equivalent annually.