EL Salvador LNG-to-power project seals financing
Sponsors of the 378MW Energia del Pacifico (EDC) LNG-to-power project in El Salvador – Invenergy Clean Power El Salvador (85%) (a consortium of investors comprising Invenergy (76.5%), Grupo Calleja (17.6%) and VC Energy de Centro America (5.9%)), and minority shareholder Quantum Energy (15%) – have closed project financing to fund the scheme.
The $877 million project, which is backed by a 20-year PPA awarded in 2013 by the government, and financed via project vehicle EDC, includes an offshore LNG import terminal and gas-fired facility in the Port of Acajutla, as well as a FSRU and a 44km 230kV transmission line. Wartsila is EPC contractor, while Shell won the LNG supply agreement. Commercial operation is scheduled for the end of 2021.
The approximately $800 million debt package comprises four tranches: OPIC provided a $350 million loan; IFC put up a $195 million facility, comprising a $100 million A loan; a $65 million loan from its co-lending portfolio programme and a $30 million credit guarantee; IDB Invest financed an 18-year $115 million loan; while KfW IPEX-Bank, Finland's ECA Finnvera, and its subsidiary Finnish Export Credit, backed a $142 million tranche. White & Case acted as legal counsel to the lenders with Arias as Salvadoran counsel. Astris Finance acted as financial advisor for EDP.
