Argentine Republic / NEXI Underwrites Reinsurance to Support Vientos Los Hercules Wind Power Project
-First Reinsurance Underwritten under MoU Signed with Multilateral Investment Guarantee Agency-

July 5, 2019

Nippon Export and Investment Insurance

Nippon Export and Investment Insurance (NEXI, Chairman and CEO: Atsuo Kuroda) has decided to underwrite reinsurance ceded from the World Bank Group's Multilateral Investment Guarantee Agency (“MIGA”, headquartered in Washington, D.C.) to support a wind power generation project in the Argentine Republic (hereinafter “Argentina”) in which Mitsui & Co., Ltd. has invested at 34%.

NEXI will promote investments made by Japanese firms into South America by reinsuring MIGA’s insurance policies which cover political risks in Argentina including expropriation, war and civil disturbance, and breach of contract. This is the first reinsurance policy provided by NEXI under the Memorandum of Understanding on Reinsurance Cooperation concluded with MIGA in May 2018.

The aim of the project is to build wind power generation facilities with a generation capacity of 97.2 MW in total (consisting of 27 wind turbines, each having a 3.6 MW capacity) on a 350 ha site near the city of Pico Truncado in the Santa Cruz Province, located about 1,500 km southwest of Buenos Aires, the capital of Argentina. The electricity will be sold to CAMMESA, the administration company for the wholesale electric power market in Argentina, over a 20-year period.

Under a new energy law passed in 2015, the government of Argentina aims to increase the percentage of energy supplied using renewable resources to 20% by 2025. To achieve the goal, the government of Argentina launched an international auction process known as the "RenovAr Program". Vientos Los Hercules S.A. is implemented under this program and is significant as it supports achievement of this ambitious objective.

As a governmental financial institution of Japan, NEXI will actively provide support for Japanese companies establishing and expanding business operations in South America.

Contact: Overseas Investment Insurance Underwriting Group, Underwriting Department
Tel: +81-(0)3-3512-7668