IDB's $300 Million Boost to Ecuador's Electrical System

The Inter-American Development Bank has approved a $300 million loan to Ecuador to enhance its electrical system. This investment, under the Amazonia Siempre initiative, aims to promote sustainable development, conserve forests, and improve living standards. The project includes upgrading 700 km of transmission lines and expanding electrical access in the Amazon.

The Inter-American Development Bank (IDB) has sanctioned a $300 million loan to assist Ecuador in fortifying its electrical infrastructure, according to a statement by the Andean nation's Finance Ministry on Wednesday.

This financial package is part of the IDB Group's Amazonia Siempre initiative, which is committed to sustainable development, forest conservation, and enhancing quality of life in the region. It comprises $270 million from IDB Ordinary Capital, with a 22.5-year term and an 8-year grace period. An additional $30 million is sourced from the Clean Technology Fund on concessional terms at a 1.19% interest rate spread over 20 years.

Over 700 km of transmission lines will be upgraded with advanced conductors to boost system capacity and facilitate the integration of new renewable energy sources. The venture prioritizes expanding electrical access in the Amazon, aiming to connect approximately 5,600 rural and urban-marginal households to the national grid by 2031. The funds are dedicated to increasing renewable energy generation and enhancing the transmission infrastructure.

(With inputs from agencies.)