FDN Signs Agreement with BID Invest, BBVA, DUE Capital, and Bonus Gestión de Activos for Renewable Energy Projects in Remote Amazon Areas

As part of the COP16 climate conference, Colombia’s Financial Development Agency (FDN), a Grupo Bicentenario company, has signed a memorandum of understanding with BID Invest, BBVA, DUE Capital, and Bonus Gestión de Activos to pursue financing for renewable energy projects aimed at isolated communities in the Amazon region. The agreement focuses on advancing solar generation and battery storage projects in the municipalities of Mitú, Vaupés, and Puerto Leguizamo, Putumayo.

The collaboration seeks to secure funding and seed capital for the energy projects, identify a majority investor, and designate an energy dispatch operator. The planned installations include a 7.6 MWh solar plant with 8.8 MWh battery capacity for Mitú and a larger 14 MWh solar facility with 17.3 MWh battery storage for Puerto Leguizamo. These projects are designed to provide a consistent supply of renewable energy to over 22,000 residents in Vaupés and 20,000 in Puerto Leguizamo.

The renewable energy installations are expected to replace roughly 2.1 million gallons of diesel annually.

According to FDN President Francisco Lozano, this initiative represents a significant step in addressing energy needs in underserved areas and aligns with Colombia’s objectives for a “Just Energy Transition.” Lozano noted that FDN’s expertise in structuring and financing high-impact projects will support the provision of clean and reliable energy access for rural and Indigenous communities.

The renewable energy installations are expected to replace roughly 2.1 million gallons of diesel annually, substantially reducing greenhouse gas emissions and decreasing air pollution. These efforts aim to help protect the Amazon’s fragile ecosystems and biodiversity while contributing to Colombia’s broader sustainability goals.

FDN plans to leverage its experience in Project Finance structures to meet high socio-environmental standards throughout the project life cycle. Following comprehensive due diligence, FDN may also participate as a financing entity.

Colombia’s National Development Finance Company (FDN) has as shareholders the National Government through its Bicentennial Group entity, the International Finance Corporation (IFC), the Sumitomo Mitsui Banking Corporation and the Development Bank of Latin America (CAF). It is an entity linked to the Ministry of Finance and Public Credit.For additional information on FDN’s involvement and progress on these renewable energy projects, visit FDN’s website.

Above photo (courtesy FDN): Standing from left to right: Camilo Baptiste (Partner Bonus Asset Management) and Daniel Umaña (President Due Capital and Services)
Seated: Francisco Lozano (President FDN), Marisela Alvarenga (General Director of Business IDB Invest) and Mario Pardo (President BBVA Colombia)