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Overview

[China Co-financing Fund] IDB administers 9.75 million USD loan from CHC for Solem Solar Farm in Mexico

Commitments (Constant USD, 2023)$10,375,232
Commitment Year•2017Country of Activity•MexicoDirect Recipient Country of Incorporation•MexicoSector•EnergyFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Aug 7, 2017
Start (actual)
Oct 1, 2017
End (actual)
Oct 2, 2019
Last repayment (originally scheduled)
Dec 25, 2037

Geospatial footprint

Map overview

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The Solem Solar Farm is located in the Municipality of El Llano and the State of Aguascalientes. More detailed locational information can be found at https://www.openstreetmap.org/relation/15485554#map=13/21.8786/-102.0863

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

Government Agencies

  • People's Bank of China (PBC)

Cofinancing agencies

Intergovernmental Organizations

  • Canadian Climate Fund for the Americas (C2F)
  • IDB Invest (formerly Inter-American Investment Corporation or IIC)
  • Inter-American Development Bank
  • International Finance Corporation (IFC)

Private Sector

  • Mitsubishi UFJ Financial Group

State-owned Banks

  • Mexico National Public Works and Services Bank (Banobras)

State-owned companies

  • Banco Nacional de Comercio Exterior

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Cubico Alten Aguascalientes Dos, S.A.P.I. de C.V.

Implementing agencies

Intergovernmental Organizations

  • China Co-Financing Fund for Latin America and the Caribbean (CHC)

Private Sector

  • Alten Energías Renovables
  • Cubico Sustainable Investments Limited

Loan description

[China Co-financing Fund] IDB administers 9.75 million USD loan from CHC for Solem Solar Farm in Mexico

Interest type•UnknownMaturity•20.4 years

Narrative

Full Description

Project narrative

On 7 August 2017, the Inter-American Investment Corporation (IIC, now IDB Invest), acting on behalf of the Inter-American Development Bank (IDB) Group, signed a 75 million USD loan package to finance the Solem PV project. According to IDB Invest, 13% of this loan, 9.75 million USD, was provided by the China Co-financing Fund for Latin America and the Caribbean (CHC). The Solem Solar Farm is a build, own, operate Public-Private Partnership (PPP) greenfield project located in the El Llano municipality of the Aguascalientes state. It consists of two adjoining solar PV plants with a combined capacity of 290MW and a 350 megawatt peak (MWp). Cubico Alten Aguascalientes Dos, S.A.P.I. de C.V. was the special purpose vehicle (SPV) responsible for project implementation, with a 20 year contract. Project construction began in October 2017. The project reached commercial operation on October 2, 2019, per PV Tech. The project was financed via both debt and equity components, with a debt-equity ratio of 73:23. The total project cost was 368 million USD, with the equity valuing 99.4 million USD, and non-recourse project finance debt valuing 268.8 million USD. The equity financing is sponsored by non-Chinese companies - Cubico Sustainable Investments (for $69.6 million USD, with 70% ownership) and Alten Energias Renovables (for $29.8 /million USD, with 30% ownership). The debt component of the project is being funded through the $75 million loan package from the IIC/IDB, a $45 million loan from the International Finance Corporation (IFC), a loan of $45 million USD from Bancomext, $45 million from Banobras, and $58.6 million from Mitsubishi UFJ Financial Group (MUFG). The IDB group loan package consisted of, in addition to the amount from the China Co-Financing Fund, 27 million USD from the IDB (36%), 18 million USD from the IIC (24%), and 20.25 million USD from the Canadian Climate Fund for the Private Sector in the Americas. The solar plants have energy purchase contracts, with clean energy and power certificates, that were signed with CFE Basic Supply as part of Mexico’s second Long-Term Electricity Tender in September 2016. The China Co-Financing Fund was established on 14 January 2013 with a contribution of 2 billion USD by the People's Bank of China, and it is administered by the IDB. For more information, see umbrella Record ID#86526.