Quijandria to Meet IDB's Iglesias ahead of Camisea Visit

Peru's energy & mines minister Jaime Quijandria will meet Tuesday with Inter-American Development Bank (IDB) president Enrique Iglesias in Montreal, Canada, to discuss the progress of Peru's Camisea natural gas project, ahead of an IDB visit to Peru May 8-13.

The IDB delegation, which will be led by IDB VP Dennis Flannery, will evaluate Camisea's progress first hand. "[The delegation] will get a clear picture that this project is very advanced, which means the bank risk is significantly reduced, but also that everything is being done according to international standards," Quijandria said in a statement.

The IDB is considering lending US$75mn of its own resources to the project and organizing a US$240mn syndicated loan, and Quijandria has previously said that a decision on this financing will follow this month's visit. An IDB source told BNamericas "the US government has made it clear that Camisea is a high priority," but denied that a decision is imminent. Only the IDB's board of directors can approve the loan, so it is unlikely that Flannery will announce the loan's approval during his visit, which will focus on Camisea's environmental aspects key to the loan's approval.

The IDB loans, combined with a US$50mn loan being considered by Venezuela-based Andean Development Corp. (CAF), would finance the remaining work on the pipeline project, which is about 50% complete. The loans are not assured unless the IDB approves an environmental impact study, which was completed in December and is still under review.

Argentine oil company Pluspetrol leads Camisea's upstream consortium, construction company Techint heads up the TGP consortium constructing the pipeline and Belgian company Tractebel will handle gas distribution in capital city Lima and the adjacent port of Callao.

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