The Inter-American Development Bank (IDB) has approved a US$125 million loan for a 500 kV and 544 km power line that will help Ecuador and Peru connect their electrical grids.
The European Investment Bank is expected to contribute an additional US$125 million to the project. The works will be owned and operated by Empresa Pública Estratégica Corporación Eléctrica del Ecuador (CELEC EP) and it will put up an additional US$13.62 million in local counterpart funding.
The project is under a private concession contract that includes 30 years of commercial operation. It has a 23-year term, with a 7.5-year grace period and a SOFR-based interest rate.