Boost to competitiveness in Ecuador through the electric sector
The increase in the country's generation and distribution capacity of electric energy contributes to satisfy the country's current and future demand
The objective of the contract signed between CAF, Development Bank of Latin America, and Ecuador's Ministry of Finance, is to support projects related to the generation, transmission, and distribution of electric energy throughout the country.
The USD 200 million loan recognizes the investments to increase the installed capacity, and the length of the transmission and sub-transmission networks that are part of the change of the energy matrix, and that are also part of the 2013-2022 Electrification Master Plan
The increase in the generation and transmission capacity of electric energy is one of the main contributions of the program, as it directly impacts on a greater coverage of the electric service, improves the quality of life of the population, and guarantees the supply of energy. In addition, the completion of large hydroelectric projects promoted by the National Government, which will start operations during the next two years, will benefit with the signature of this loan contract, substantially contributing to a change of the energy matrix.
The improvement of competitiveness in the productive processes at lower costs for electricity rates is also noteworthy, as it positively impacts both on products and services in the domestic and international markets; incentives to private investments; reduction of subsidies to fuels; lower imports of derivatives; and improvement of the country's external and fiscal accounts.
Thus, CAF contributes to the development of key sectors in its member countries, as is the case of the electric sector, with an increase in the generation and transmission of energy in the productive sectors, and an improvement in the quality of life of the population.
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