The European Investment Bank approved financing for the Ecuador-Peru Interconnection at 500,000 volts

This Celec release was published using machine translation.

The Board of Directors of the European Investment Bank (EIB), after a rigorous analysis and evaluation process, approved financing for USD 125 million, for the 500,000 volt Ecuador-Peru Interconnection project, to be executed by the Electric Corporation of Ecuador (CELEC EP).

With the approval by the EIB Board of Directors, on July 12, the second financing for this binational project was formalized, through a multilateral organization.

This project was declared a national priority and is the first energy transmission project in the country that will have the financing of 2 multilateral organizations for its construction. A total investment of USD 289 million is required; the Inter-American Development Bank (IDB) will grant USD 125 million, the European Investment Bank (EIB) another USD 125 million, and the difference will be managed with CELEC EP’s own resources.

The Ecuador-Peru Interconnection, at 500,000 volts, will allow energy exchanges between the two countries, will take advantage of hydrological complementarity, will contribute to a greater security of electricity supply, and will generate economic and environmental benefits for the Ecuadorian electricity sector.

At the same time, it will facilitate regional energy integration in South America, through the import and export of electricity between these neighboring countries. Likewise, it will promote the establishment of a subregional electricity market, in accordance with the regulation of the Andean Community, which seeks to facilitate electricity exchanges in the region.

This system will cross the provinces of Guayas and El Oro, and includes the following works:

• Transmission line (Chorrillos – Passage 500 thousand volts), 207 km long.
• Expansion of the Chorrillos substation, 500 thousand volt line bay.
• New electrical substation in Pasaje (El Oro), 500/230 thousand volts with a capacity of 600 MVA.
• Passage – Border transmission line, 500 thousand volts, 77 km long.

The Government of Ecuador, through the Ministry of Energy and Mines and the Electricity Corporation of Ecuador (CELEC EP), permanently promotes and executes new energy transmission works, in order to strengthen the electricity sector for the benefit of Ecuadorians.