The construction on the plant began with the initial diversion of the river in 2002.
When completed, the project will be the fourth hydropower plant functioning in the Lower Caroni River Valley, which already provides 70% of Venezuela’s electricity supply. The IDB participated in the development of this energy system with a $500 million loan approved in 1993 to help finance the construction of the Caruachi project, and a $350 million loan for an electric transmission system for the Guri hydroelectric plant.
The IDB approved a $750 million loan to help finance the Tocoma project in 2005. The $800 million in supplemental financing will be used for primary civil works and will also replace part of the original local counterpart financing and partly cover increased costs. The funds will contribute to the financial sustainability of the project and allow construction to proceed according to schedule.
The project will increase the supply of power to households and industry, improve economic competitiveness and contribute to economic growth through a power source that is more environmentally sustainable than existing alternatives. Among the benefits of the Tocoma project will be a reduction in the emission of greenhouse gases through the displacement of current thermal electricity generation.
The IDB loan is for a 20-year term, with a six-year grace period, at an adjustable interest rate.
