Special Financing Program for Clean Energy Projects (PROPEL) CORPORACIÓN ANDINA DE FOMENTO CARACAS, May 2011.

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Special Financing Program for Clean Energy Projects (PROPEL) CORPORACIÓN ANDINA DE FOMENTO CARACAS, May 2011

Corporate and Financial Sector May / 2011 Special Financing Program for Clean Energy Projects (PROPEL) Rationale: Small projects have limited access to financing due to: Shortage of long term financing for this type of projects. High level of skills needed for the financing structuring. High costs associated with the financing structuring.

Corporate and Financial Sector May / 2011 Special Financing Program for Clean Energy Projects (PROPEL) The Program is meant to finance reliable and proven technologies (hydro,solar, wind, biogas, etc.). It finances (up to 70%) projects with a maximum of US$ 30 MM of total investment and up to 15 years. Transactions amounts between US$ 2 MM and US$ 15 MM. Long term loans, risk capital and/or partial guarantees. CAF will have external support for assessing and structuring the transaction.

Corporate and Financial Sector May / 2011 CAF is an important services provider (PLAC+e) for clean energy projects: Certification Purchase and financing of CERs Visit Special Financing Program for Clean Energy Projects (PROPEL)

Corporate and Financial Sector May / 2011 Approval Process First committee: reviews the main characteristics of the project. Determines whether the project is eligible or not. Could take at least two weeks, depending on the quality of the information given by the sponsors. Mandate Letter and Terms and Conditions: base for the negotiation process. After signing the mandate latter begins formally the Due Diligence Process. This phase could last between 2 and 3 weeks. Due Diligence Process: the project is reviewed thoroughly. External advisors are needed. Their cost should be cover by the project or the sponsors (aprox. US$ ). This phase could take at least to 4 months. Drafting and negotiating of loan agreements. Financial closing.

Corporate and Financial Sector May / 2011 Contact Information Carlos Sanz Director (58 212) Luis Reingruber Executive (58 212) Av. Luis Roche, Torre CAF Altamira, Caracas 1080 Venezuela Fax: (58 212)