Ecuador to bolster electricity grid with support from IDB
$150 million loan to expand transmission plan systems
Ecuador will build and expand six new electrical transmission systems, adding 586 kilometers of transmission lines and enlarging 12 substations with a $150 million loan from the Inter-American Development Bank (IDB).
The construction projects will include the areas of Tabacundo and Riobamba toward the south of Yanacocha, the southwest area of Durán, the interconnection point of the Santo Domingo – Esmeraldas line and that of Pedernales - La Concordia.
The program will allow for greater generation of hydroelectric power, reduce requirements for thermal generation, respond to growth in demand from electricity distributors and strengthen both Ecuador’s interconnection with Colombia and the development of environmental specifications of the Extra High Voltage System between Ecuador and Peru.
Growth in demand for electricity in Ecuador has exceeded that of supply. In 2012, demand for energy was 6.1 percent higher than in 2011. In order to meet these challenges, the government of Ecuador has various hydroelectric construction projects under way, of which 2,362 MW will come on line over the short term. Transmission of electricity generated with the new facilities will be ensured with investments from Electricity Transmission System.
The IDB loan is for a 25-year term, with a 13 years grace period and an interest rate based on LIBOR. Local contribution will be $19.5 million.
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