The Inter-American Development Bank (IADB) has arranged a US$1bn package for a huge hydropower facility in the north of Colombia that will be the country’s largest renewable energy project.

The 2,400MW plant will be built in Antioquia and will generate 18% of Colombia’s total installed capacity, or 13,900 GWh of electricity each year.

As well as a US$300mn loan from its own book and a US$50mn co-loan from China Co-Financing Fund for Latin America and the Caribbean, an IADB-run fund, there’s a US$650mn package from a range of international lenders.

This “B” loan comes from Caisse de Dépôt et Placement du Québec (CDPQ), KfW-Ipex, BNP Paribas, SMBC, BBVA and Santander. The commercial tenor has two tranches, with 12 and eight-year tenors respectively. The IADB portion of the debt has a 12-year tenor.

The borrower is Empresas Publicas de Medellín (EPM) a public utility services company, owned by the municipality of Medellín in Colombia.

Colombia’s electricity sector is dominated by hydropower generation, which accounts for 65% of total generation. The other 35% comes from thermal sources. Its hydropower sector is a continual source of international investment.

In December, KfW signed a US$82mn credit line with Financial Institution for Development in Colombia, which will in part finance small hydropower and solar plants, with minimum capacity of 2MW.