The Inter-American Investment Corporation (IIC) approved a loan of up to US$2.6 million to Grupo Gelec S.A.S. E.S. in Colombia.

The project consists of partially financing the purchase of the Patico-La Cabrera hydropower plant and associated assets. The plant will be upgraded and modernized to generate 8.5 gigawatt-hours of clean energy per year. This run-of-the-river plant is currently producing an average of 5.8 gigawatt-hours yearly.

"With this operation, the IIC will help boost the development of a clean, more efficient power generation industry. Because of the power generation shortfall in the Cauca region, where the project is located, much of the electricity consumed there is diverted from other areas of the country," according to Olga Lucía De Narváez, IIC investment officer in charge of the operation.

About Grupo Gelec
Grupo Gelec was established in 2009 to generate, transmit, distribute, and market electricity. It has a portfolio of hydropower projects in Cauca Department in Colombia, in varying stages of planning, preparation, and development. Grupo Gelec is currently focused on developing the 1.48-megawatt Patico-La Cabrera hydroelectric power plant.

About the IIC
The IIC is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. The IIC's mission is to promote the economic development of its regional member countries by encouraging the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. It does so by providing financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. In 2010, the IIC reached US$1.4 billion in assets and approved 49 operations channeling US$374.8 million to SMEs in the region. For more information on the IIC's activities, please visit www.iic.org.