The Borrower Is Owned By Two Large European Utilities With

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The Borrower is owned by two large European utilities with significant presence in the South American electricity sector. The IE has opined that the Borrower’s management team has strong industry experience and the proposed staffing plan is appropriate for the operations and maintenance of the proposed transmission system. The JV partner Engie Energía Chile S.A. (“EEC”) (BBB/BBB; SFS Equivalent 4-), is a subsidiary of Engie S.A. (Engie) (A-/A2/A-; SFS Equivalent 3-), and Red Eléctrica Chile (“REC”), subsidiary of Red Eléctrica Corporación S.A.U. (A-/Baa1/A; SFS Equivalent 3-). Both partners have significant experience in operating and managing a transmission grid. The risk designation of “Neutral/Standard” corresponds to the 4- equivalent…show more content…
The LTA oversight is not required. The Borrower has competed the System of Environmental Impact Assessment (SEIA), and has been favorably qualified. The IE has opined that the Project is also compliant with the Equator Principles in relation to the environmental and the social assessment requirements. All environmental permits (the “RCAs”) are in place. No material environment risks have been identified. The assessment is “Neutral/Standard”. With the exception of the transmission cables, the Project has insured all major equipment. It is common practice in Chile not to cover transmission cables due to diverse geography covered by transmission lines, the nature of catastrophic risks in Chile, and historical claims. Furthermore, the Analyst notes that it doesn’t make financial sense to insure transmission lines as they are either inexpensive to replace, difficult to damage, or both. Marsh, the Insurance Consultant, has opined that the insurance coverage for the Project is in line with industry standards and adequate for a Project of this type and size. All material licenses required for operation at this point in the Project timeline have been obtained. The risk designation is “Neutral/Standard”. Proximity to some communities could generate conflicts if problems are not handled in a suitable manner. As a precautionary measure, TEN has implemented a
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