Global law firm Clifford Chance has advised IDB Invest and Bancolombia S.A. in connection with the COP473.77 billion (~US$113 million) financing for the development, construction and operation of the 201 MWp Shangri-La solar photovoltaic power plant in Tolima, Colombia.
Upon completion, the project will be one of the largest solar plants in Colombia and the largest in Tolima. The plant is expected to begin operations at the end of 2025 and to produce enough energy to supply over 214,000 homes and prevent the emission of nearly 162,000 tons of CO2 each year. This transaction is the largest solar project financed by IDB Invest in Colombia and marks the entry of clean energy developer Atlas Renewable Energy into the Colombian market.
The project is expected to contribute to and promote several United Nations Sustainable Development Goals (SDGs), including SDG 7 (Affordable and Clean Energy), SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), SDG 13 (Climate Action), and SDG 17 (Partnerships for the Goals).
Partner Fabricio Longhin commented, “Colombia has set an ambitious goal of transitioning 70% of its energy to renewable sources by 2030. The private sector is committed to this goal and is eager to develop renewable energy projects. In turn, the finance sector has shown an increased appetite to fund them. Shangri-La is clear evidence of this, and we are pleased to contribute to our clients’ dedication to mitigate the effects of climate change.”
Lead associate Julián Hurtado Vallejo said, “This kind of strategic alliance between commercial banks, multilaterals and energy generators is key to improving Colombia’s energy sector. For years, Colombia’s electricity supply has relied on hydropower, which recently led to an energy crisis due to the El Niño phenomenon. The successful closing of this project marks a significant achievement in our clients’ efforts to help overcome this crisis and consolidate the Colombian energy sector.”
Working with Longhin and Hurtado Vallejo were associates Fernando Liu and Adele Irwin and law clerks Adriana Cabal and Daniela Hernandez, with additional support from partner Paul Koppel and associate Thomas Koh on ERISA matters.
Clifford Chance advises on many infrastructure financing transactions in Colombia, including advising IDB Invest and Bancolombia in connection with a COP 656 billion multi-tranche and multi-currency financing to developer Solarpack to finance solar PV projects in Colombia in 2023. The firm has also advised on the Troncales 5G, the Buga-Buenaventura 5G, the Bogotá-Girardot, the Pamplona-Cúcuta, the Rumichaca-Pasto, the Conexión Norte and the Ruta al Sur toll road projects.
