US$250 million to improve Ecuadorian electricity service

(Caracas, August 18, 2009).- CAF approved a US$250 million loan for the Republic of Ecuador for execution of a set of priority public investments in the electricity sector, which will improve, expand and optimize the generation, transmission and distribution infrastructure of the sector. The executing agency is the Ministry of Finance.

CAF President & CEO Enrique Garc�a said, "in view of the 6% annual increase in demand for power, the Government of Ecuador has given priority to the investments needed to guarantee the strengthening of the electricity sector, by means of execution of projects in the areas of generation, transfer and distribution." "The financing approved today - Garc�a added - is part of the Corporation's constant support for the development plans of its shareholder countries and in response to the ongoing international financial crisis."

The CAF financing represents 30% of the cost of the projects included in the Program, which totals US$1.96 billion. The Program responds to the energy planning criteria of the Ministry of Electricity and Renewable Energy (MEER) and covers financing for six projects: three in generation (Mazar, Termoesmeraldas and Sopladora studies), a set of transmission projects (Transelectric), and various distribution projects (Ferum and Fonsol).

With this financing program, the Ecuadorian government will be able to maintain the current rate of investments in these projects, whose expected impact on the national electricity system through interconnection of transmission systems will result in integrated management, expansion of capacity and coverage of service, improvement of transmission conditions, and an enhanced level of reliability and safety of the service in the country.