FRV Closes financing to build 65 MW photovoltaic plant in Uruguay

July 25, 2014
Tags:

  • FRV announces financial close of the “Jacinta” solar farm with $70 million of funding from DNB Group and Intesa Sanpaolo. Santander provided an additional funding tranche of $24 million
  • “Jacinta” is one of the largest solar projects in Latin America and the first FRV project in the region
  • Project will generate enough electricity to supply approximately 35,000 homes, avoiding 74,142 MT of CO2 emissions per year
  • OHL will construct the plant utilizing BYD solar photovoltaic panels

Today, FRV announced the financial closing of a 65 MW photovoltaic plant in Uruguay, the Jacinta solar farm in Salto Department in northwestern region of the country. The announcement follows the signing of a $70 million project finance arrangement with DNB Group and Intesa Sanpaolo, along with $24 million of additional funding tranche from Santander through its Asset and Capital Structuring team.

Jacinta marks the first solar power purchase agreement (PPA) signed with Uruguay’s stateowned company UTE (Administración Nacional de Usinas y Trasmisiones Eléctricas) and is the first FRV project to reach financial close in the region. Once completed, the facility will be one of the largest solar projects in Latin America. It will generate enough electricity to supply approximately 35,000 homes in the area and remove 74,142 MT of CO2 emissions per year.

The project is due to be completed by May 2015. It is part of the government’s sustainable energy policy to promote solar power in Uruguay. The Jacinta project will be constructed by OHL Industrial, a subsidiary of the Spanish group OHL, with solar photovoltaic panels supplied by BYD.

“Jacinta will provide a low cost source of power to the region and help further Uruguay’s goal in order to transform its current mix of energy over the next few year with an increasing penetration of renewable sources”, said Rafael Benjumea, CEO at FRV. “It will also deliver considerable benefits to the local economy, including the creation of more than 200 jobs during the construction phase and the use of significant local content.”

FRV was selected for the development of this project under a PPA for a period of 30 years through a public program led by UTE. Since the confirmation of the offer, UTE and FRV have worked together in the environmental assessment and the executive project necessary to connect the generation plant to the distribution network.

“We are very excited about the Jacinta project, as it represents the first of many low cost FRV solar projects for the Latin American market and will provide an affordable, clean solar power resource for Uruguay,” added Scott Mackin, Managing Partner and Co-President at Denham Capital which is a majority shareholder in FRV.


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José Benjumea

Founder, FRV

We believe that our success needs to have a positive impact in those regions where we operate and that education is the best channel to meet this goal, and to improving the future of those communities that embrace our projects

Gianfranco Carassale

Lead Investment Officer, Inter-American Investment Corporation (IIC)

The pioneer spirit is something that has always characterized Rafael and José’s team, from their decision to enter the solar energy business to their expansion to new markets with an aggressive strategy able to capture them.

Gianfranco Carassale

Lead Investment Officer, Inter-American Investment Corporation (IIC)

Despite their size, they have been competing closely in bids with firms, which had different structures and abilities. This certainly shows their ability to be a strong market competitor. FRV has been a pioneer in market segments where no one had been before, and that has a lot of value.