Controversial Alto Maipo hydroelectric plant welcomes protection for bankruptcies in the US

Chile’s controversial Alto Maipo hydroelectric project has invoked Chapter 11 of the U.S. bankruptcy protection law to initiate a financial reorganization, the firm and its parent company said Wednesday.
The project of two power plants with a combined installed capacity of 531 megawatts has already reached a pre-agreement with its creditors to advance in the operation.
“This process aims to create a sustainable capital structure in the long term maximizing recovery for all its creditors and ensuring the liquidity necessary to meet the short-term obligations for the start-up of the project,” Alto Maipo said in a statement.
For its part, AES Andes said that “the subsidiary Alto Maipo SpA will deconsolidate its financial statements and will recognize in the Income Statements of the fourth quarter of 2021 a net loss that will amount to approximately 1,100 million dollars.”
According to the schedule, in December the synchronization tests of the units that make up the project will begin to begin injecting energy into the system and achieve commercial operation in March 2022, according to the firm.
“Alto Maipo achieves 100% progress in the excavation of its tunnels and 99% in general. Its construction will end up within the estimated costs in its last restructuring and approximately one year before the dates guaranteed in the current construction contracts,” he explained.
To date, AES Andes has contributed US$1,016 million to Alto Maipo for the construction and advancement of this project. This amount considers the last contribution of US$46 million made in October of this year.
“Since launching its Greentegra strategy in 2018, which aims to accelerate a safer and more sustainable energy future, the company has signed renewable energy contracts for 10.5 TWh per year. In terms of capacity, the company will add 2,400 MW of renewable generation and batteries to its portfolio, of which it has already incorporated 305 MW and currently has 1,114 MW under construction, including Alto Maipo,” the public statement reads.
The project has been strongly opposed by social and environmental groups who argue that its operation would affect water supply in the Chilean capital.
However, from the company they maintain that they will remain committed “to the development of renewable projects in Chile, contributing to the sustainable reactivation with investments close to US $ 3,000 million, generating more than 7,000 direct jobs in the markets in which it is present.”

Original source in Spanish