CAF Looking To Provide Financing For Southern Pipeline

The Andean Development Corporation, CAF, is interested in providing some of the financing for the Southern Andean Gas Pipeline, which will be operated by Kuntur Transportadora de Gas, owned by Odebrecht of Brazil and Conduit Capital Partners of New York.

CAF’s representative in Peru, Ricardo Campins, said the Ministry of Economy and Finance has asked the regional organization to be the financial advisor of state-owned Petroperu in the project.

Petroperu is seeking a minority stake in the pipeline, which has been declared of national interest by parliament due to its potential development boost for southern Peru.

“We hope we will soon sign the mandate [with Petroperu],” state news agency Andina reported Campins as saying. “We are in talks and the lawyers are developing the final document. We hope that in a matter of weeks it will be ready.”

Campins said that once the mandate is signed, CAF will undertake an analysis of Petroperu’s possible participation in the project.

The pipeline, which will be more than 1,000 kilometers long, is to transport gas from the Camisea fields in the Amazonian jungle in southeastern Peru to the cities in the southern departments of Cusco, Puno and Arequipa in the Andean highlands and Moquegua and Tacna on the coast.

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