Union Group has secured a $59m financing package from a consortium of banks for two hydropower projects planned to be built in Peru.

Germany’s DEG, the Netherlands Development Finance Company, Austria’s Oesterreichische Kontrollbank and Spain’s Compania Espanola de Financiacion del Desarrollo have invested in senior debt in the 8.4MW El Carmen and 19MW 8 de Ogosto plants.

Union Group subsidiary GeneraciĆ³n Andina is building the facilities in Monzon district.

The facilities, which are expected to be completed in January next year, will be connected by a 60km transmission line.

Peruvian Government will buy the energy generated from the plants under two 20-year power purchase agreements.

Union Group president and founder Juan Sartori said: "We are delighted to have brought this transaction to a close and we welcome the four development banks as strategic partners in this project.

"Each of them share our long-term ambitions for the hydropower sector in Peru and our vision to deliver clean energy while creating jobs, encouraging economic growth and delivering investor returns."

Union Group had recently acquired the 5.3MW Canchayllo plant in Peru to expand its hydropower portfolio in the country.

The company is developing about 1GW of energy assets in the South American country.