FRV Closes financing to build 65 MW photovoltaic plant in Uruguay

July 25, 2014

  • 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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Scott Mackin

Managing Partner and Co-President, Denham Capital

We’ve greatly enjoyed our collaborative relationship with the team and look forward to seeing FRV continue its success in the future.

Gianfranco Carassale

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

They are known for their expertise in solar technology as well as for their deep knowledge of the process, the financial structure and the energy market as a whole. This enables them to be extremely competitive. This way they reach efficiency and maximize profits, developing economically viable projects even at very tight and ambitious price targets.

Scott Mackin

Managing Partner and Co-President, Denham Capital

Denham Capital has been proud to partner with the team at FRV for nearly three years in this very successful investment. Rafael, José and their colleagues have captured a leading position in key emerging markets where solar undercuts the marginal cost of electricity.