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SubscribeCuatrecasas has advised Scatec and the Norwegian Investment Fund for Developing Countries (Norfund), acting as sponsors, on the financing of COP 364,816 billion granted by Bancolombia and the FDN, for the development, construction and operation of the Barzalosa solar park, located in Nariño, Cundinamarca. This project will have an installed capacity of 130 MWh, injecting clean energy into Colombia’s National Interconnected System.
With this long-term financing in local currency, backed by a 15-year power purchase agreement, the project will guarantee income stability and maintain sustained financial viability throughout its useful life, becoming a replicable model in the Colombian energy sector and paving the way for a new generation of photovoltaic projects.
“It is a privilege for our firm to have supported our clients and the Barzalosa solar park in the financial closing of this transaction, which marks a turning point for the energy sector in Colombia. The local currency financing structure, backed by institutions such as Bancolombia and the FDN, sends a powerful message: the country is ready to attract long-term investment aligned with the highest ESG standards. We are proud to have contributed to this milestone,” said Natalia Arango, Finance partner at the Cuatrecasas Bogotá office.
The Barzalosa solar project is the first of its kind in Colombia under this sponsorship model. Once operational, the plant is expected to prevent the emission of approximately 150,000 tons of CO2e per year, contributing to the country's energy transition. The project also aims to generate local employment and support the development of sustainable jobs in the region.
In addition to strengthening and diversifying Colombia's energy matrix, the Barzalosa project will generate skilled jobs during the construction and operation phases, increase the income of the municipalities in its area of ??influence, and boost the local supply chain, consolidating an inclusive development model.
The Cuatrecasas team that advised on this transaction was led by partners Natalia Arango and Manuel Quinche, along with lawyers Juan Carlos Camacho, Simón Escobar, María Alejandra Martínez, Isabel Ocampo, and Samuel Tafur (Finance); Mateo Benjumea, and Alejandro Manrique (Corporate and M&A); Manuel Gómez, and Emilio Torres (Energy); Andrés Martínez (Infrastructure); Margarita Llorente and Laura Pinzón (Real Estate); and Jaime Vargas, José Manuel Jaramillo, Nathalie Medina, and Valentina Vélez (Tax).
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