KfW IPEX-Bank, along with eight local and international banks and a US insurance firm, has provided funding for a grid interconnection project in Chile.
Overall, the Transmisora Electrica del Norte (TEN) project will receive $854M in total debt capital.
The loan is structured in four tranches of amounts ranging from $50M to $460M and terms ranging from three to 26 years.
The project involves the construction, operation and maintenance of a 600km-long, 500kV transmission line. The line will connect Chile's northern grid to the central grid — these systems have always operated independently of each other. Connecting the grids is expected to stabilise the entire system and reduce costs.
The project is owned by French energy firm Engie and Spanish energy firm Red Electrica. A major share of construction works will be carried out by the French GE Grid Solutions. Construction work is underway, and the system is expected to be operational at the end of 2017.
* Data provided by Timetric's Construction Intelligence Center.