| Project Detail |
The development objective of the Clean Energy Development Project is to assist Colombia in increasing electricity generation capacity from non-conventional renewable energy sources and energy savings in the industrial sector, through mobilization of private investment. The Project consists of one or more IBRD Guarantees in an aggregate amount of up to USD 4118 million and a Clean Technology Fund (CTF) Guarantee in an amount of up to USD 40 million to backstop Financiera de Desarrollo Nacional (FDN’s) payment obligations. The key rationale for IBRD and CTF Guarantees is to help, through FDN, the Republic of Colombia (ROC) in establishing a long-term and creditworthy offtake market, thereby building a track record for long term investments in clean energy. FDN will explore two main functions to catalyze the market for small scale renewable energy generation and energy efficiency initiatives. The first function involves designing and developing credit enhancement and risk mitigation products to help mobilize long term financing for clean energy sector. The second function involves reviewing the potential for implementation of an aggregation vehicle to reduce transaction costs and attract commercial financing for small scale Sub-projects. It is important to note that support to small scale renewables (behind the meter) and energy efficiency are considered only as pilot activities that seek to plant the seeds to demonstrate the implementation potential for further development of the market. Under the PER Account, FDN will create two windows to provide IBRD/CTF Eligible Financial Products, one for Large Scale Renewable Energy (LSRE) Sub-projects and the other for Small Scale Subprojects (SSE) Sub-projects. IBRD and CTF Guarantees support FDN in offering cost effective IBRD/CTF Eligible Financial Products and in obtaining additional leverage. The innovative and efficient ... |
