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This Summary of Project Information is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision.
Summary of Project Information (SPI)
Project number 11444
Project nameEl Canada Hydroelectric Project
CountryGuatemala
SectorUtilities
DepartmentInfrastructure
Company nameGeneradora de Occidente Limitada
Environmental categoryB
Date SPI disclosedMay 13, 2002
Projected board dateJune 12, 2002
StatusActive
Previous EventsInvested: January 28, 2003
Signed: December 12, 2002
Approved: June 26, 2002

Project sponsor and major shareholders of project company
The sponsor is Energía Global International, Ltd. of Bermuda (EGI), a renewable power development company. EGI is indirectly owned by Enel Green Power S.p.A. of Italy, a wholly owned subsidiary of Enel S.p.A. of Italy. The project company is Generadora de Occidente Ltda. of Guatemala, which is indirectly owned by EGI.

Total project cost and proposed IFC investment
The construction of El Canadá, a 43 MW hydroelectric station in Guatemala (the project), is estimated to cost US$57.1 million. The financial plan consists of US$37 million in debt and US$20.1 million in shareholder equity. IFC is considering a US$15 million loan for its own account. The balance of the debt will be provided through an IFC B loan or parallel loan.

Location of project and description of site
The project is located 12 km south of Quetzaltenango Municipality and approximately 200 km west of Guatemala City. El Canadá will be constructed immediately down-stream of the existing Santa María hydroelectric plant on the Samalá River. Diverted tailrace from the Santa María station will flow through a 1.2 km tunnel to a 184,000 m3 five-hour peaking reservoir. Water stored in the reservoir will flow to a powerhouse situated on the Samalá River. The 43 MW of gross capacity will be produced by two Pelton turbines.

Description of company and purpose of project
Generadora de Occidente Ltda. of Guatemala was formed in 1999 to undertake the project and is 100% owned by EGI, through subsidiary companies. The purpose of the venture is to expand Guatemala's base of hydroelectricity and support Guatemala's merchant power industry.

Developmental impacts are expected to include: (i) support of an innovative financing structure that will reinforce a competitive market and attract long-term investment; (ii) improvement in sector efficiency through enhanced price stability; and (iii) demonstration, both nationally and regionally, that renewable energy can attract competitive financing.

IFC's role in the project is the support of Guatemala's power sector reform and the investment of long-term debt in an innovative power project.

Environmental and social issues - Category B
This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects, because a limited number of specific environmental and/or social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.

To view the environmental documents for this project, click here


Location of environmental documents in locally affected community
Municipalidad de Zunil
5 avenida 1-98 Zona 1, Municipio de Zunil
Departamento de Quetzaltenango

Municipalidad del Nuevo Palmar
Carretera Intertroncal de Occidente, Km 190
Municipio del Nuevo Palmar,
Departamento de Quetzaltenango

To contact the project company, please write to:
Juan Carlos Mendez, Project Director
Energía Global International, Ltd
Centro Gerencial Las Margaritas, Torre I Oficina 801, Zona 10
Guatemala City, Guatemala
Email: jcmendez@energiaglobal.com