Funding totalling $220 million will support Ecuador’s expansion and strengthening of electricity infrastructure and reducing fossil fuels. The Inter-American Development Bank (IDB) has approved a $150m loan for Ecuador to help the country expand, strengthen and improve the operational efficiency of its power sector. The 25-year loan includes a 7.5-year grace period, LIBOR-based interest rate, and an additional $89.1m in local counterpart funds. The Japan International Cooperation Agency (JICA) will provide an additional $70m parallel financing through its Cofinancing for Renewable Energy and Energy Efficiency (CORE) mechanism. JICA is expected to approve the funding by the fourth quarter of 2017.
This funding will supplement Energy Matrix Transition program from the Ministry of Electricity and Renewable Energy. The program began in 2013 to improve the supply, reliability and quality of electricity and boost social welfare and economic development.