A group of European banks is providing US$200 million in financing for the construction of the Punta Catalina coal-fired plant, the Central Termoelectrica Punta Catalina, in the southwestern province of Peravia, according to a press release from the Dominican Public Electricity Corporation (CDEEE).
The plant under construction by the Dominican government since 2013 will have capacity to generate 720 megawatts and will be connected to the national electricity grid.
As reported, the money was disbursed at the end of the year, once the banks had confirmed that the plant would comply with environmental and social requisites set out by the international community.
The CDEEE states that the money was sent directly to those who will supply the main parts of the plant such as turbines, the boiler, the transformers and other priority equipment.
CDEEE executive vice president Ruben Jimenez Bichara said that the first payment was part of the total to be received in financing, or US$632.5 million.
The group of European banks is made up of Societe Generale from France, Banco Santander from Spain, ING Bank from the Netherlands, Unicredit from Italy and Deutsche Bank from Germany.
The loan has a low interest rate of Libor plus 2.4%, and partial payments as they are needed. It will be repaid over 16 years with a four-year grace period.
http://cdeee.gob.do/cdeeesite/banca-internacional-inicia-desembolso-financiamiento-punta-catalina-2/
