va tech hydro in india - ANDRITZ Vertical volute pumps

own. Special terms and conditions
were created to attract international
investors. In financing this project,
issuing emission certificates was
considered for the first time. This
allowed to include the local farmers
as they were given the chance to
participate financially. The Rio
Amoya region is characterised by
widespread poverty and a host of
social problems offering only limited
opportunities to the local population.
Thus, a power generation project
has turned into a sustainable
energy and development project.
What social effects do you expect
the Rio Amoya project to bring
about?
In addition to feeding electricity
into the national power grid, part of
the annual income from emission
certificates will be invested in
development and environmental
protection programmes for a better
future of the some 6,300 inhabitants
of this region. Already in the construction
phase US$ 2.7 million will
be spent on social investments over
a period of 28 months. This money
is designed to improve the health
and education systems in the
Canon de Las Hermosas region.
During the operative phase 20% or
approx. US$ 400,000 from the sale
of emission certificates will be
invested in maintaining the newly
created structures. Moreover, new
programmes for preservation and
protection of the eco system
surrounding the project site will be
launched.
The source of energy is the
plateau (Paramo) of the Las Hermosas
national park. What is so
special about this area?
The Rio Amoya run-off river power
plant will be driven by the waters
of the river by the same name,
which originates on the Paramo de
Las Hermosas. The people living on
this plateau have already initiated
several environmental protection
programmes. This region is home to
numerous species such as the Oso
de Anteojos or parrots for which a
protection programme will be
necessary. The Paramo de Las
Hermosas plateau covers an area of
60,000 hectares and is situated at
an altitude of 3,300 to 4,500 metres
above sea level. At approx. 2,800 m
to 3,300 m there is the most important
eco system of the region, the
tropical mountain forest or Bosque
Alfondino. The project itself is located
at an altitude of 1,500 m. The
major part of environmental protection
resources will be devoted to
these two systems, the mountain
forest and the Paramo plateau.
Once in operation, the plant will
generate additional revenue from
the sale of emission certificates.
How important are these revenues
for the project?
This income is absolutely necessary
both for the financial part and the
social aspect of the project as it
makes possible the social projects
for the region and helps to ensure
financing. In Colombia there are
many investment barriers, which
prevent the realisation of projects.
For instance, the high interest rates
for project financing due to the
substantial risks associated with
Colombia. The US$ 22 million generated
over a period of twelve years
from the certificates offer additional
security for investors. Otherwise,
the return on investment would not
be sufficient for foreign investors for
the reasons stated above. The
additional revenue is expected to
increase ROI by approx. 1% to
1.5%, which could be a decisive
factor in finding any investors at all.
Your plans for the future?
I would like to continue working on
sustainable projects, taking down
investment barriers. New projects
are already being investigated.
These include AGUAFRESCA with
an installed capacity of 7.4 MW,
the 20 MW MONTANITAS project as
well as the two major projects
of ENCIMADAS (90 MW) and
CAÑAVERAL (80 MW). All the necessary
construction and operation
permits have already been obtained
for these projects.
What are your expectations with
respect to the cooperation with
VA TECH HYDRO?
This is a competitive project. For
this reason, we want the best engineers
and consultants we can get.
VA TECH HYDRO supported us with
their technological and commercial
expertise not only at the tendering
stage but also in the structuring of
the overall project. In particular this
latter phase required a good deal of
patience from all those involved. We
are genuinely interested in cooperating
with VA TECH HYDRO in the
realisation of future projects.
Beat Ritschard (right)
Phone +57/1 655 82 00
britschard@vatech.com.co
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