The proceeds of IFC's financing will be used to refinance some of the debt incurred by REI in connection with its acquisition of the company and to fund the company’s investment program. TDE and the sponsor seek to preserve the company’s position as the leading provider of transmission services in Bolivia. The company has developed an investment program, which will improve the operation of its existing facilities and expand the transmission network. These investments are expected to reduce system constraints, improve reliability and enhance competition between generators for the supply of energy, resulting in the lower cost of energy for end consumers. The IFC investment is expected to augment the capital structure of the company and place it in a better position to raise additional long-term finance in the future, which would be used to complete TDE’s investment program. IFC’s support to TDE will facilitate the transfer of technical and management know-how from the sponsor and will aid the continued development of Bolivia’s private sector, creating important synergies for the rest of the economy. IFC will also directly contribute to the development of an Environmental and Social Management System (ESMS), which will be used by the company as a management tool in meeting their social and environmental goals and obligations. The private sector provision of transmission services is a pioneering activity in emerging markets with few sponsors pursuing investment opportunities. This is IFC’s first investment with Red Electrica as a sponsor. By supporting TDE, IFC expects to encourage greater involvement and investment by Red Electrica in emerging market economies.