16 November 2005 – The Inter-American Development Bank has approved a $750m loan to Venezuela for the construction of a 2160 MW hydropower plant.
The Tocoma hydropower project will have ten generators put into operation on a staggered basis between July 2012 and March 2014. The plant will be built, operated and maintained by the state owned company CVG Electrificación del Caroní S.A.
When completed, the project will be the fourth hydropower plant functioning in the Lower Caroni River Valley, which provides 70 per cent of Venezuela’s electricity supply.
The IDB loan is for a 20-year term, with a nine year grace period, at a variable interest rate. The Andean Development Corporation is expected to provide parallel financing consisting of two loans amounting to $300m each.
The Bank has also approved a $2.7m loan for the development of the country’s power sector. The loan will support the development of a new legal and institutional framework for the sector as well as administrative and organizational improvements for state owned electricity companies.