Camisea natural gas project awarded bank funding
By an OGJ correspondent
LIMA, Sept. 15 -- The Camisea natural gas project last week was authorized funds for $135 million from the Inter-American Development Bank (IDB) to be used towards the completion of the $1.6 billion Camisea natural gas megaproject in Peru's Amazon rainforest.
Late last month, IDB had placed on hold for a third time the decision to provide the loan to the Camisea partners (OGJ Online, Aug. 28, 2003).
IDB will contribute $75 million from its own funds and $60 million from a syndicated group of banks. Andean Development Corp. (CAF) also has approved $75 million for Argentina's Transportadora de Gas del Peru (TGP) to finance the completion the project's pipeline portion, taking the total credits to $210 million.
TGP said it will be seeking a further $375 million from international and local markets. Banks in Peru are discussing raising a $200 million syndicate, with bond issues as one of the possibilities, although the move is expected to take time.
The credits include $75 million to be repaid over 14 years and $60 million from a syndicated loan formed by companies who signed agreements with the IDB, for repayment over 12 years with interest rates at market value.
Peru creates commission
Shortly before the meeting, the Peruvian government announced the creation of a commission for sustainable development in the Paracas Bay. One of the sensitive issues raised by environmental groups is the construction of a fractionation plant for Camisea in an area close to the buffer zone of the Paracas Nature Reserve.
The Camisea project said all environmental reports had been approved after following recommendations from Inrena, the environmental institution.
Thirty percent of work on the fractionation plant has been completed onshore and work is scheduled soon to begin on construction of an underwater pier for shipping products. IDB has recommended that the project should increase control and supervision of the environment within the upstream area as well as downstream.
IDB granted a $5 million dollar loan to the Peruvian government last December to strengthen environmental controls and take measures to mitigate impacts and improve living conditions for communities in remote areas.
Pluspetrol, the operator of the Camisea projects upstream, maintains it has taken all necessary precautions to protect its fractionation site at Playas Loberias beach from causing damage. The company noted that its neighbors included fishing communities as well as area fishmeal plants. It says it examined 14 beaches in the area before deciding on its present location. Problems in other sites were unstable grounds, archeological remains, and populated areas.
The consortium, including upstream and downstream, so far has invested $1.1 billion. According to the companies, the final investment amount may be closer to $2 billion rather than the initial $1.6 billion estimate.