ACCIONA, a global leader in sustainable solutions, has partnered with the International Finance Corporation (IFC), a member of the World Bank Group, to advance environmentally and socially responsible infrastructure projects. The partnership includes a $600 million green and sustainability-linked loan (SLL) aimed at financing transformative projects in Brazil and Peru, alongside other emerging markets.
Financing Details
The loan is structured in two tranches:
- First Tranche – $380 Million:
- IFC Loan: $145 million, with Dutch development bank FMO investing $95 million.
- Parallel Loans:
- DEG (German development bank KfW): $105 million.
- Proparco (French Development Agency group): $130 million.
- Funds will support power transmission projects in Peru and urban mobility projects in Brazil.
- Second Tranche – $220 Million:
- This tranche will fund additional sustainable infrastructure projects in emerging markets.
Key Projects
Peru: Renewable Energy Integration
The IFC will support three critical power transmission projects aimed at transitioning Peru to a renewable energy grid:
- Reque-Nueva Carhuaquero (220 kV).
- Nueva Tumbes (220/60 kV).
- Ica-Poroma (220 kV).
These projects will help integrate clean energy into Peru’s national grid, meeting growing demand and reducing greenhouse gas emissions.
Brazil: São Paulo Metro Line 6
One of the largest public-private partnerships (PPPs) in global infrastructure, this subway line will:
- Serve 600,000 daily passengers.
- Reduce commute times from 1.5 hours to 23 minutes.
- Improve access to education, healthcare, and economic opportunities for residents in São Paulo’s outskirts.
The project aims to transform urban mobility and significantly enhance quality of life for underserved communities.
Sustainability-Linked Goals
The loan ties financing terms to ACCIONA’s ability to meet specific environmental and social targets:
- Corporate Targets: Increasing capital expenditures aligned with the EU taxonomy for sustainable activities.
- Local Impact: Providing renewable electricity, water, and sanitation services to local communities through acciona.org, ACCIONA’s foundation. These initiatives directly support UN Sustainable Development Goal 7, ensuring universal access to affordable and sustainable energy.
Green Hydrogen and Future Collaboration
This partnership builds on previous agreements between IFC and ACCIONA, including the development of the Alto dos Ventos green hydrogen project in Brazil. This initiative represents a significant step in advancing green hydrogen technologies and supporting Brazil’s decarbonization efforts.
Executive Perspectives
Jose Manuel Entrecanales, Chairman and CEO of ACCIONA, emphasized the importance of collaboration:
“Together, we are driving progress by providing communities with essential electricity and water services. This agreement exemplifies our shared commitment to sustainability.”
Alfonso Garcia Mora, IFC Vice President for Latin America and the Caribbean, highlighted the partnership’s regional impact:
“Our collaboration with ACCIONA will decarbonize Peru’s energy sector and improve public transportation in Brazil, contributing to resilience and sustainable development in the region.”
Conclusion
This partnership underscores ACCIONA and IFC’s shared vision of fostering sustainable development. By combining innovative financing mechanisms with transformative infrastructure projects, the collaboration is poised to improve quality of life, reduce emissions, and enhance economic resilience in emerging markets.
