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| Don’t forget the local banks |
Hydropower developers in Chile and Peru are pushing to structure smaller projects on a merchant basis. Lenders in the region admit a slowly increasing appetite for more aggressive revenue strategies.
This marks a change for post-crisis project finance in Latin America. Lenders have been demanding certainty of cash flow through long-tenured power purchase agreements (PPA) and have been reluctant to fund projects relying on spot sales or short-term contracts.
Speaking at an International Project Finance Association (Ipfa) seminar on July 7, Raphael Dumas, an HSBC director...