## [Samay I S.A.’s cold reserve power plant project finance](/en_GB/new/samay-i-sas-cold-reserve-power-plant-project-finance) # Samay I S.A.’s cold reserve power plant project finance 04 / 22 / 2015 Credentials - - [](https://www.linkedin.com/sharing/share-offsite/?url=https://www.garrigues.com/en_GB/new/samay-i-sas-cold-reserve-power-plant-project-finance) - []() - []() Previous Next ![](/sites/default/files/noticias/img/central-peru.jpg) We advised Bank of Tokyo-Mitsubishi UFJ, LTD., HSBC Bank USA, N.A. and Sumitomo Mitsui Banking Coporation in the project financing for the construction and operation of Samay’s 593-megawatt cold reserve power plant to be located in the southern coastal region of Peru, which is a key component of the power energy plan of the Peruvian government for the south of the country, which in turn involves the construction and operation of the Southern Peru Gas Pipeline (Gaseoducto del Sur Peruano or “GSP”). As part of such plan, when constructed, GSP shall be connected to the project (and other similar projects in such region) in order to generate electricity for the south of Peru using gas. In the meantime, the project will run using diesel, fuel giving assurance to the Peruvian electricity system in case of shortfalls in the production of electricity. The plant is to be located in Mollendo, in the region of Arequipa, about 480 miles southeast of Lima. An associated 500-kilovolt gas-insulated substation, and a 36-mile transmission line connecting the cold reserve plant to a substation in the nearby district of La Joya, are also in development. The main objective of this transaction was to finance the construction and operation of the cold reserve power plant . The transaction was closed in the short term and involved financing a project from its construction stage. For this, besides agreeing upon a construction plan, it was necessary to develop a complex scheme of guarantees that captured the whole set of assets and flows of the project. The relevant issues surrounding the construction of this project were primarily linked to meeting the demand on energy, under the framework of the southern electric node. This had to be accomplished taking into account the elevated costs of production involved in diesel cold reserve plants (in contrast with hydroelectric or wind power plants) as well as the dispatches of energy. We advised the lenders and administrative agent in the structuring of the project financing. ### Contacts ![Sergio Amiel - Garrigues](/sites/default/files/styles/medium/public/team/photo/Sergio_Amiel_en_20260519.jpg?itok=XlC6h3ap) [Sergio Amiel](/en_GB/team/sergio-amiel) ![](/themes/custom/garriguestheme/img/iconos/email-contacto.svg)[Contact]() - +51 1 399 2600 [Lima](https://www.garrigues.com/en_GB/office/lima) ![](/sites/default/files/styles/medium/public/team/photo/10009483.jpg?itok=6c5dCe8s) [Héctor Zegarra](/en_GB/team/hector-zegarra) ![](/themes/custom/garriguestheme/img/iconos/email-contacto.svg)[Contact]() - +51 1 399 2600 [Lima](https://www.garrigues.com/en_GB/office/lima) ![Eduardo Ortega - Garrigues](/sites/default/files/styles/medium/public/team/photo/Eduardo_Ortega_en_20250919.jpg?itok=Cy6kMbny) [Eduardo Ortega](/en_GB/team/eduardo-ortega) ![](/themes/custom/garriguestheme/img/iconos/email-contacto.svg)[Contact]() - +51 1 399 2600 [Lima](https://www.garrigues.com/en_GB/office/lima) [Find more professionals](../team) ### Related services - [Banking and Finance ](/en_GB/services/banking-and-finance) - [Environmental ](/node/1423) - ## Find a publication - [Administrative and Constitutional Law](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A1422) - [Agribusiness and Food](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A1417) - [Automotive](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A1419) - [Banking and Finance](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A1443) - [Corporate and M&A](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A1441) - [Corporate Governance and Sustainable Development](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A12823) - [Criminal Law and Internal Investigations](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A1434) - [Data Economy, Privacy and Cybersecurity](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A10913) - [Dispute Resolution: Litigation and Arbitration](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A1412) - [Energy](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A10916) - [EU and Antitrust Law](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A1416) - [Family Business](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A1413) - [Fashion Law](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A1435) - [Financial Regulation](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A10915) - [G-advisory](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A12821) - [Human Capital Services](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A1431) - [Infrastructure](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A10914) - [Insurance](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A1438) - [Intellectual Property](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A1421) - [Labor and Employment](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A1424) - [Life Sciences and Healthcare](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A1429) - [Media and Entertainment](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A1433) - [Planning, Zoning and Environment](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A1444) - [Private Equity](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A1439) - [Real Estate](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A10927) - [Restructuring and Insolvency](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A1420) - [Securities Markets](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A1442) - [Sports](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A1430) - [Startups & Open innovation](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A1426) - [Sustainability](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A10921) - [Tax](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A1425) - [Technology, Communications and Digital](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A1436) - [Tourism and Hotels](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A1432) - [Transport, Logistics and Shipping](/en_GB/markdownify/node/2793?f%5B0%5D=service%3A1428) Facet Services detail - [Publications](/en_GB/markdownify/node/2793?f%5B0%5D=publication_type%3A794) - [Newsletters](/en_GB/markdownify/node/2793?f%5B0%5D=publication_type%3A107) - [Garrigues collection](/en_GB/markdownify/node/2793?f%5B0%5D=publication_type%3A101) - [Laws: amendments at a glance](/en_GB/markdownify/node/2793?f%5B0%5D=publication_type%3A104) - [News](/en_GB/markdownify/node/2793?f%5B0%5D=publication_type%3A105) Facet Publication type detail Min Max ## News search engine