USD 150 million to expand the energy sector in Ecuador
This funding will be used to improve the reliability and extend coverage of the electricity grid, contributing to sustainable development in the country and the well-being of its inhabitants.
The Development Bank of Latin America (CAF) granted the Department of Finance of Ecuador a loan of USD 150 million to improve a series of indicators that will reflect greater efficiency in the sector and provide a better quality service. The loan will also engender positive results in terms of the environment, public finance and external accounts.
"CAF's support for this operation will help Ecuador to achieve the targets set out in its National Strategy for Energy Grid Change, and reduce production sector costs thanks to the supply of cheaper and cleaner energy, thereby improving people's quality of life," said Luis Carranza, CAF's Executive President.
The program will allow for a reduction in the average cost of generation, energy consumption rates and fuel imports, consequently reducing fuel import subsidies for thermal generation. This investment will be used within the framework of the 2013-2022 Master Electrification Plan, and is backed by the Department of Electricity and Renewable Energy, given that the electrical sector is considered as strategic for the country.
CAF is increasing its support for the Ecuadorian electricity sector by investing in the direct costs of electricity generation, transmission and distribution projects throughout the country, in a joint effort to promote expansion and sustainable diversification of the energy grid.
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