CAF to boost Ecuador’s productivity with clean energy and support for New Urban Agenda 2030

More than 55,000 hectares of shrimp farming on the Ecuadorian coast will benefit from the Program for Strengthening Power Distribution Networks for the Aquaculture Sector, which will receive a USD 200 million loan approved today by the Board of Directors of CAF–development bank of Latin America.

The Program calls for the improvement of power transmission and distribution systems, with an emphasis on providing energy to the shrimp sector. The implementation of clean energy systems in the provinces of Guayas, El Oro, Manabí, Esmeraldas and Santa Elena will allow the sector to benefit from automated pumping, aeration and feeding, thus leading to more intensive production per area.

“By developing electricity infrastructure we'll improve productivity and competitiveness of Ecuador’s shrimp industry by improving efficiency and replacing fossil fuels with clean energy, which will allow them to be certified as green producers. Another important feature of this project is a marginal rural and urban electrification component, with a potential reach of more than 6,500 homes of vulnerable populations, thus substantially improving their quality of life,” said Luis Carranza, executive president of CAF.

In addition, Ecuador’s Urban Agenda and Habitat Policy Support Program will receive a $203-million loan, to promote greater efficiency and effectiveness of national urban development and housing policies, by implementing two instruments: (i) an updated and integrated national georeferenced habitat and housing registry, to strengthen management, planning and financial capacity of municipalities; and (ii) a community and low-income housing mortgage portfolio securitization instrument that stimulates supply and facilitates access to financing of such housing for low-income families.

“Promoting social inclusion and productivity is one of the priorities of CAF’s Cities with Future program. The National Land Registry System proposed by Ecuador transcends the traditional fiscal approach, and is a useful tool for public management, policy formulation and evaluation, and strengthening finances of municipalities. The portfolio securitization instrument will allow more than 5,000 middle- and low-income families to become homeowners, and will help boost social and economic development through the expansion of the secondary mortgage market, boosting the construction industry and creating jobs,” Carranza said.

This Program supports the government of Ecuador in the development and implementation of the New Urban Agenda, designed and approved by the Ministry of Urban Development and Housing with a 2030 vision, to address the challenges facing the region in terms of sustainable development in the cities and enhance the opportunities offered by urban life in its many dimensions.