China Development Bank Corp is to put forward over $3bn in funding to help finance Latin America‘s largest wind power project in Argentina.
Executive VP of Generadora Eolica Argentina del Sur SA, Eduardo Restuccia confirmed that it will receive the funds to install 1350 MW of Chinese turbines across 45,000 hectares (111,200 acres) in the Chubut province in southern Argentina.
The $3.5bn wind project will furnish 4 per cent of Argentina’s power once fully operational in 2017, Restuccia added.
Latin American developers are buying Chinese wind turbines that are packaged with financing that’s less expensive and easier to arrange than loans from local banks, which aren’t familiar with the economics of wind farms.
The deals are attractive in Argentina, which has been blocked from international bond markets since it defaulted on $95bn of debt during a financial crisis in 2001 and 2002.
“Argentina can’t get finance from Europe or the U.S.,” Restuccia said. “That gives the Chinese a unique exclusivity tool” for financing energy projects in the region.
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