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Peru

Answer

Globeleq is a wholly-owned subsidiary of the Capital for Development (CDC) group plc. that deals with CDC’s holdings in the power sector. CDC is, in turn, wholly-owned by DFID, but operates independently and reports to its own board of directors.In March 2004, the Secretary of State for International Development signed an agreement with the CDC board, laying down CDC’s mission to invest in the poorer developing countries and how and where it should operate. This investment policy includes the ‘business principles’. These require CDC to apply best practice in environmental, accounting, management, legal, health and safety and labour standards. DFID does not interfere or seek to direct or influence CDC’s commercial decisions. Instead, DFID holds the board of CDC responsible for ensuring that the company invests responsibly and complies with the agreed investment policy.Reliable and well-managed power supplies are crucial to economic development and I welcome Globeleq’s initiative to expand power-generation capacity in developing countries. I have been assured that Globeleq has carried out all the necessary environmental assessments for its new development in Peru and that the new 168 megawatt power-plant at Kallpa will comply with all relevant Peruvian, national and local government regulations as well as meeting World Bank guidelines. The plant will use Peruvian natural gas, which affords the cleanest immediate solution to meeting the rising demand in Peru for reliable supplies of electricity.

Secondary information

Type

Written question

Reference

451 c1525W; 99455

Session

2005-06

Subjects

Power stations Peru

Link

View this Written question on www.publications.parliament.uk