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)

Recent innovations, new technologies, and growing connectivity are playing a crucial role in SME financing, since they facilitate information management and enable the simplification of payment processes as well as better access to alternative credit analysis tools. In this regard, the development of new finance technologies (FinTech) makes it possible to offer innovative services to SMEs. For this reason, the Inter-American Investment Corporation (IIC), member of the IDB Group, is hosting the FINPYME Forum: The 1st Forum for Innovation in SME Finance in the region.

Gregory Da Re, IIC Strategy and Innovation Division Chief

“Promoting and improving SME access to financing in Latin American and the Caribbean is key for us. That is why we are staging this event, which we hope will promote dialogue and knowledge exchange on innovative financing models in the region and beyond, with a view to creating greater opportunities,” said Gregory Da Re, IIC Strategy and Innovation Division Chief.

• What? FINPYME Forum will provide a platform to unveil the latest innovations in SME financing.
• Where? Medellín, Colombia
• When? September 21-22, 2015
• Who? Close to 400 leaders of financial institutions and representatives of private sector enterprises, the public sector, academic institutions, and civil organizations from across the region.

FINPYME Forum is unique and will provide participants an opportunity to exchange ideas and expand their network by meeting other professionals and industry leaders from all over the world. The forum will feature renowned speakers who will participate in conferences and discussion panels, as well as FinTech pioneers who will offer demo sessions of their tech solutions. The sector’s latest financing innovations will also be shared, enabling participants to learn about viable means of enhancing their competitiveness to serve a larger share of the SME market. In addition, experts will analyze different models that have worked well in other parts of the world and, together with the forum participants, explore the opportunities available to the region.

The event is organized by the IIC with the support of the Inter-American Development Bank(IDB), the SME Finance Forum, the International Finance Corporation (IFC), CAF – Development Bank of Latin America, and the Aspen Network of Development Entrepreneurs (ANDE).

Registration for the event is open online at www.finpymeforum.org. The early registration discount ends on June 30, 2015.