This paper describes the experience of the ITDG-LA (Intermediate TechnologyrnDevelopment Group, Latin America-office) in the implementation of a revolving fund forrnthe installation of small hydro electric power plants (SHPPs) in the northern region of Peru.rnThe fund started in 1994 under an agreement between ITDG and the Inter AmericanrnDevelopment Bank (IDB); So far, it has provided loan finance to 26 SHPPs owned byrnsmall villages, private farmers and cooperatives, in different isolated rural communities; thernfinance model has developed over time and has demonstrated that loan finance to smallrnvillages, and private farmers can leverage local capital and government funds for locallyrnowned and sustainable rural electrification. It is a replicable model for decentralizedrnelectrification based on renewable energies.
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