GE Energy Financial Services and YPF Energía Eléctrica subsidiary YPF have secured nearly $220m project financing for two jointly owned Argentine thermal power projects having a combined capacity of 374MW.

The funding for the 267MW Tucumán and 107MW Loma Campana II projects was jointly led by Credit Suisse and Export Development Canada (EDC).

Both the thermal power plants have crossed halfway of their construction stage and put together mark the first power plant project financing in nearly 20 years in Argentina.

YPF chief financial officer Daniel González said: “This project finance is an important milestone for YPF as it completes the funding of all our power projects under construction, therefore proving the ability of YPF Energía Eléctrica to continue to grow with its own balance sheet.”

Both the thermal power projects have secured a 10-year power purchase agreement (PPA) each with state-owned electric utility Compañía Administradora del Mercado Mayorista Eléctrico (CAMMESA).

The PPAs were given to the GE and YPF units last year under the ‘Fast Power’ tender of the Argentine government.

Slated to start commercial operations in February 2018, the Tucumán project is located in Tucumán province and is equipped with GE 9F.04 gas turbine.

The Loma Compana II project, on the other hand, will start commercial operations by the year end. It is being built in the Neuquén province and is powered by a GE LMS100 gas turbine.

In December 2016, YPF and GE announced a joint investment of nearly $100m for the Loma Compana II thermal power project.

GE Energy Financial Services Global Capital Advisory managing director Bob Psaradellis said: “GE’s technology, global reach and capital expertise enabled a successful outcome for Argentina’s initial fast power tender and for an important GE customer, YPF.”

GE also holds the EPC contract for the two new thermal power projects.