On December 27, 2018, MIGA agreed to issue up to US$24 million in guarantees for Mitsui & Co., Ltd. (Mitsui) of Japan's equity and quasi-equity investments This summary covers an application by Mitsui & Co., Ltd. (Mitsui) of Japan for its investments in Vientos Los Hercules S.A. (the Project) in Argentina. The guarantees are issued for up to seven years against the risks of Expropriation, War and Civil Disturbance, and Breach of Contract.
The Project involves the design, construction, operation and maintenance of a 97.2MW wind farm located about 35km east from the city of Pico Truncado in the province of Santa Cruz, Argentina. The electricity output will be sold to Compañia Administradora del Mercado Mayorista Electrico (CAMMESA) under a 20-year Power Purchase Agreement. The power generated by the Project will be transmitted through the Las Heras-Santa Cruz Norte 132kV transmission line which is adjacent to the Project, and connects to the Santa Cruz Norte-Puerto Madryn 500kV line through the Santa Cruz Norte 132kV/500kV substation.
The Project was part of the Government of Argentina’s RenovAr public tendering program launched in May 2016.
The project is a category B under MIGA’s Policy on Environmental and Social Sustainability. Click here for the project’s Environmental and Social Review Summary.
Environmental and Social Impact Assesment Documents
Please click the links below to view the environmental and social impact assessment documents for this project:
The Project is expected to: i) increase efficient generation capacity to meet expected demand needs and reserve capacity requirements reducing reliance on imported electricity and supporting the Government of Argentina’s efforts to lower the country’s generation costs, ii) increase renewable energy sources and diversifying generation mix thus reducing dependence on thermal and hydro generation which are more susceptible to external shocks in terms of price and availability, and iii) support the Government of Argentina is its climate change mitigation through the avoidance of 204,000 tons of GhG emissions.
MIGA’s proposed coverage is aligned with the World Bank Group’s strategy for Argentina as it contributes to expanding energy availability to firms and households in an efficient and sustainable manner, and it reduces environmental risks and safeguard natural resources by reducing the use of fossil fuels.