CAF and ESSA Sign Loan to Improve Household Power Supply in Colombia
January 20, 2022
The multilateral organization signed an external loan to partially finance the Expansion and Strengthening Plan of the Regional Transmission System and the Local Distribution System in charge of Electrificadora de Santander, which is set to improve quality of the public electric service in the Department of Santander and neighboring municipalities in Colombia.
CAF—development bank of Latin America—and Electrificadora de Santander E.S.P. (ESSA) signed an external loan agreement for USD 95 million and with a 15-year term that allows partial financing of the development of the expansion and strengthening plan of the regional transmission and distribution infrastructure, which serves the Department of Santander and surrounding areas.
The planned investments aim to develop more than 3,600 km of transmission lines, and to build at least 3 power substations and incorporate at least 840 MVA of new power; electrify more than 30,000 urban and rural homes; and improve the indicators of quality of service of the system.
“These funds will help improve coverage and quality of power supply for the people of the Department of Santander and other municipalities in Colombia, thus improving their living conditions and promoting the supply stability in the long term. Additionally, we are helping to close the gaps in energy access in the country,” said CAF executive president Sergio Díaz-Granados.
The operation will also help boost the competitiveness of Colombia’s regions and territorial development, by supporting a sub-nationally owned electricity company.