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Odebrecht to sell 456MW Peruvian hydroelectric plant to CTG-led consortium

CTBR Staff Writer Published 28 August 2017

Odebrecht Latinvest has agreed to sell the 456MW Chaglla hydroelectric power plant in Peru to a consortium led by China Three Gorges (CTG).

The hydropower plant is considered as the third largest in the country and is managed by Empresa de Generación Huallaga.

The consortium will acquire the power plant through Huallaga Holding, which was set up by the consortium and organized under the laws of the Hong Kong Special Administrative Region and the People’s Republic of China.

Though the financial details about the sale have not been disclosed, HydroWorld reported that the consortium will be paying $1.3bn for the facility.

The sale still requires permission from the Peruvian Ministry of Justice and from certain Chinese government entities as well.

The Chaglla hydropower plant is at a height of more than 200 meters and it is one of the largest-concrete-faced rockfill dams in the world. Its power generation capacity accounts for 10% of total hydroelectric power capacity in Peru. 

Financial advisors for Odebrecht for this transaction included Itaú BBA, Scotiabank and SMBC Nikko. The company also hired White & Case to provide legal advisory services. The consortium’s financial advisor is Bank of America Merrill Lynch and its legal advisor is Sullivan & Cromwell LLP.   

Odebrecht Latinvest is a subsidiary of the Odebrecht Group, which is a Brazilian company founded in 1944. With a presence in 25 countries, the group's nine business units operate in the petrochemical, engineering & construction, infrastructure, agroindustrial, oil & gas, transport, real estate and naval industries. 

The Chinese consortium, apart from CTG, includes Hubei Energy Group, Ace Investment Fund II and CNIC Corp.

Image: Odebrecht Group to sell 456MW hydroelectric plant to Chinese consortium. Photo: Courtesy of Odebrecht Group.