Business News of Development for Hydro-Electric Plants in Peru – Cash In On The Social Media Revolution Now

Empresa de Generación Eléctrica Cheves S.A. (“Cheves” or the “Company”) is developing a run-of-river 168 MW hydroelectric power generation plant, along the Churin and Checras rivers, approximately 245 km north of Lima, Peru (the “Project”) as shown by International Business News.

The Project is expected to generate 838 GWh annually on average, yielding a plant utilization factor of around 57%. The Project comprises the construction of a total of 18 km in tunnels (including a water conveyance system), an underground power house, and a 77 km transmission line to connect the project to the National Interconnected System.

The Project has been in development for over 10 years and Cheves has now secured all necessary key permits for its development, including a Definitive Concession (required for electric power generation activity), and performed the required Environmental & Social Assessments (“ESIA”s) in accordance with local regulation. The Company has also secured 8 Power Purchase Agreements (“PPA”s) with electricity distribution companies for a period of 15 years starting in 2014.

SN Power Invest AS (“SN Power” or the “Sponsor”) owns 99% of Cheves, a special purpose vehicle created to develop the Project.

SN Power is a Norwegian company dedicated to invest, develop and operate renewable energy projects (mainly hydropower projects) in emerging markets. It was established in 2002 and is owned by Statkraft (currently 60%), Norway’s public power utility and Europe’s largest generator of renewable energy; and Norfund (currently 40%), a leading Norwegian risk capital investor in emerging markets that is funded by the Norwegian Government. The Company’s operations are currently focused in South America and Asia, with recent increased focus in Central America and Africa.

The Project’s cost is estimated at around $400 million. Hindmarsh LLC t/as Hindmarsh Finance has arranged for an IFC to provide up to $100 million between senior and subordinated loans, and to mobilize up to $200 million through its B loan program.

The project is located along the rivers Churin and Checras, in the provinces of Huaura and Oyón in the central Peruvian Andes, approximately 245 km north of the city of Lima

Hydro-Electric Power Plant in Peru