456 MW Peruvian hydropower plant set for $1.39bn sale

A Chinese consortium has agreed to buy a significant hydroelectric power plant in Peru.

Led by China Three Gorges Corp [CYTGP.UL] the group has agreed to buy the 456 MW Chaglla plant from Brazilian builder Odebrecht SA for $1.39bn, according to Reuters.
The deal marks China Three Gorges’ first venture into Peru as the presence of Chinese companies grows in Latin America.

The consortium also includes China’s Hubei Energy Group Co Ltd (000883.SZ), which on Thursday said it would buy 40 per cent of the Odebrecht subsidiary that owns Chaglla for $277m.

Odebrecht is at the center of Latin America’s biggest graft scandal having admitted to paying bribes from Peru to Panama. It is trying to shrink its debt as it faces over $2.6bn in fines and bans on bidding for government contracts in Peru and Argentina.

Peru’s justice ministry and Chinese regulators must approve the latest deal before it can be finalized.

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