US$77 million loan approved for Ecuador

(Caracas, July 28, 1995).— A US$77 million loan was granted to the Republic of Ecuador for construction of a hydroelectric plant at the foot of the Daule-Peripa Regulation Dam in the city of Guayaquil. The project will be executed by the Commission of Studies for Development of the Guayas River Basin (CEDEGE).

The loan, with a ten-year term including a four-year grace period, is part of the institution’s policy of supporting the development of the physical infrastructure of member countries, especially in the areas of energy, transport and communications. The funds will be used to finance the cost of the civil works for the hydroelectric plant, imported machinery and electromechanical equipment, together with the supervision and inspection costs of the works.

CAF -- financial institution formed by Bolivia, Colombia, Ecuador, Peru and Venezuela -- provides trade, investment and development banking services. With assets over US$2.25 billion, the Corporation's shareholders also include Mexico, Chile, Trinidad and Tobago and 22 private banks from the Andean region. The entry of Brazil is expected soon, as announced recently by the president of that country, Fernando Henrique Cardoso on an official visit to Venezuela.

Installation of the Daule-Peripa plant is an important part of the Jaime Roldós Aguilera multipurpose project, which according to the plan will generate average power of 597 GMH a year. In addition, the Regulation Dam will supply irrigation to 100,000 hectares of the basin, control flooding and salinity, and provide drinking water to several Ecuadorian cities and localities.