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Brian Kubeck, SITHE Global


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Regional Leadership Forum
Advancing Sustainable Hydropower in Latin America and the Caribbean

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Brian Kubeck, SITHE Global

  1. 1. Amaila Falls Hydropower ProjectGuyana November 2012
  2. 2. Amaila Falls Hydropower Project Project Summary Sithe Global • 165 MW (installed capacity) power station, 23 km2 reservoir o An international development company engaged in the development, construction, acquisition and • 270 km high voltage transmission line with operation of power generation facilities 2 interconnect points worldwide, including the recently commissioned • 20 year BOOT with Guyana Power & Light 250 MW Bujagali plant - Bujagali doubled • EPC Contract with China Railway Uganda’s capacity and was the largest privately • Debt financing planned from the IDB and financed hydroelectric power plant in Africa. CDB • Equity from Sithe Global and Government of Guyana Blackstone o One of the world’s leading investment and advisory firms, with total assets under management of approximately $205 billion, of which corporate private equity accounts for $50 billion 2
  3. 3. November 2012
  4. 4. International Example for REDD+ Financing Amaila Falls is the “Flagship” of Guyana Low Carbon Development Strategy Project Site Project is highlighted in the report of the United Nations Secretary General’s Advisory Group on Climate Finance, as a path-finder for: o Using public climate finance to leverage private finance o Using REDD+ financing to deliver further GHG abatement in the non-forestry sector – 92% reduction of the country’s energy-related greenhouse gas emissions The historic nature of the public-private partnership sees REDD+ payments catalyzing an $800m+ private investment and enabling the Guyana to own 49% of the largest and most ambitious project in the countrys history. 4
  5. 5. Enabling Financial Innovation IDB support is the cornerstone of the Amaila project finance plan Experience o Largest source of external financing in Guyana - active since 1976 o A leader in structuring Latin America project finance deals o Able to take a macro perspective of projects impact on the country o IDB participation provides comfort to other sources of capital Opening Doors – Levering IDB’s Participation o Grant Funding. IDB is the “Partner Entity” for distribution of Norway funds in association with Guyana’s Low Carbon Development Strategy (LCDS) the Guyana REDD+ Investment Fund (GRIF) o Debt Partners. IDB’s MOU with China Development Bank (CDB) to “cooperate in infrastructure construction… and energy,” helped secure significant debt capital from CDB o Public Sector Financing. IDB public sector financing provides important liquidity for GOG to make necessary reforms and investments in the energy sector. Timing is Key – project must take advantage of low interest rate environment 5
  6. 6. With Great Rewards Come Great Challenges“This will see us generating some 90% of our energy needs from renewableresources; this will have a profound impact on the growth of manufacturingand processing in our country and allow us to reduce our dependence on fossilfuel and save valuable foreign exchange” – Guyana President Ramotarspeaking publicly about the Amaila Falls Project in October 2012 Development of the Amaila Falls project will span more than a decade and cost $20 million just to achieve financial close and start construction. Key stakeholders tackle complex issues ranging from environmental safeguards to shaping the sustainable energy strategy of an entire country The efforts are worthwhile – The Amaila Falls Hydro Project allows Guyana to take control of its energy future and is an international model for an economically and environmentally effective deployment of REDD+ funding 6