First solar facility to supply electricity to El Salvador’s grid will reduce country’s dependence on fossil fuels and exclusive reliance on wind- and hydro-power
Completing the first solar power development project in the Central American nation of El Salvador, Milbank LLP has advised French energy companies Neoen S.A.S. and Neoen International S.A.S., and their local subsidiary Providencia Solar, S.A. de C.V., in negotiating US$117 million in financing from the Inter-American Development Bank through its agent the Inter-American Investment Corporation and in its separate capacity as administrator of the Canadian Climate Fund for the Private Sector in the Americas, and by the Société de Promotion et de Participation pour la Coopération Economique, a subsidiary of Agence Française de Développement, the French Development Agency.
Providencia Solar, S.A. de C.V. was created to build and operate the 79.8-megawatt plant, located in the municipality of El Rosario in the coastal department of La Paz in El Salvador. The 250,000-panel solar facility is the first in El Salvador to connect directly to the country’s grid and is expected to produce power for more than 150,000 homes, generating a 3% increase in the nation’s total electricity supply. Upon completion in 2017, it will be one of the largest solar facilities in Central America.
The Milbank deal team was led by partner Phillip Fletcher and senior associate Alexis Sáinz, with assistance from associate Lindsay Hall. Milbank supported Neoen on both finance and project documentation. Milbank worked closely with De Pardieu Brocas Maffei, which advised on French law issues for Neoen and was led by partner Jean-Renaud Cazali.
Mr. Fletcher said, “Central America has emerged as a booming market for solar and wind projects. Milbank is very pleased to assist Neoen and Providencia in helping El Salvador meet some of its ambitious renewable energy goals through this project, which will reduce the country’s dependence on imported fossil fuels, diversify its renewable energy sources, and provide a source of local employment.”
