– EIB Global will finance the implementation of the Ecuadorian side of the power interconnection system between Ecuador and Peru.
– The power interconnection will improve power supply security in Ecuador and Peru and optimise market cost structures, while fostering regional power trade.
– Part of the EU-Latin America and the Caribbean Global Gateway Investment Agenda, the project will help to improve energy efficiency and energy savings in the region.
Lagos — The EIB Global today signed a $125 million loan in Quito to improve power supply security in Ecuador and Peru and optimise market cost structures, while fostering regional power trade.
The loan facility was signed by the European Commissioner for the Environment, Oceans and Fisheries Virginijus Sinkevičius, Minister of Foreign Affairs of the Republic of Ecuador Gabriela Sommerfeld, Minister of Energy and Mines of the Republic of Ecuador Andrés Arrobo, Head of the Latin America and Caribbean Public Sector Division of the European Investment Bank Kristin Lang, and Chief Executive Officer of Empresa Pública Estratégica Corporación Eléctrica del Ecuador Paúl Urgilés.
The loan will finance the implementation of the Ecuadorian side of the power interconnection system between Ecuador and Peru. The interconnector is a key component of the Sistema de Interconexión Eléctrica Andina consisting of a 550 km high-voltage transmission line from the Chorrillos substation in Ecuador to the Nueva Piura substation in Peru.
The project will be implemented by Empresa Pública Estratégica Corporación Eléctrica del Ecuador, the Ecuadorian state-owned energy company responsible for the generation, transmission and distribution of electricity in Ecuador, increasing Ecuador and Peru’s electricity transmission capacity.
President of the European Investment Bank Nadia Calviño said: “As the financial arm of the European Union, we are proud to be supporting such an important project to improve the security of electricity supply and trade between the Ecuador and Peru while also contributing to decarbonisation and the fight against climate change. Alongside our partners, the EIB is underpinning sustainable economic development for Ecuador under the EU’s Latin America and the Caribbean Global Gateway Investment Agenda.”
Chief Executive Officer of Empresa Pública Estratégica Corporación Eléctrica del Ecuador Paúl Urgilés said: “The 500 kV electricity interconnection between Ecuador and Peru will enable efficient and secure electricity trade between the two countries thanks to their interconnected hydrological systems. Spearheaded by the President of Ecuador Daniel Noboa Azín and the Minister of Energy and Mines Andrea Arrobo Peña, the project will ensure a secure and reliable supply of electricity for Ecuador with no more power cuts.”
The new electricity interconnection between Ecuador and Peru will improve security of supply and enable the two countries to trade electricity, which will reduce generation costs.
The project under the EU Global Gateway initiative, co-financed by the Inter-American Development Bank with an additional $125 million loan, will help to increase security of supply, improve the efficiency of power generation, and support the integration of a greater share of renewable energy. EIB Global is a key partner in the implementation of the EU Global Gateway initiative, supporting sound projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors.
The EIB
The European Investment Bank is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. The EIB brings the experience and expertise of our in-house engineers and economists to help develop and appraise top quality projects. As an AAA-rated, policy-driven EU financial institution, the EIB offers attractive financial terms, including competitive interest rates and project-aligned loan durations. Through our partnerships with the European Union and other donors, we can often provide grants to further improve the development impact of the projects we support.
EIB Global in Ecuador
The EIB is the largest multilateral public bank in the world and financed around €9 billion in investments outside the European Union in 2023 thanks to EIB Global, the arm of the EIB created in 2022 for activities beyond the European Union. Ecuador is among the biggest beneficiaries of EIB financing in Latin America. Since the EU bank started working there in 2006, it has provided around €1 billion to finance investments on favourable conditions in terms of both maturity and interest rates, with the aim of improving the quality of life for people in Ecuador.
EIB Global in Latin America
EIB Global has provided economic support for projects in Latin America since 2022. It facilitates long-term investment with favourable conditions and provides the technical support needed to ensure that these projects deliver positive social, economic and environmental results. Since the EIB began operating in Latin America in 1993, it has provided total financing of more than €13 billion to support more than 150 projects in 15 countries across the region.
The Global Gateway initiative
EIB Global is a key partner in the implementation of the European Union’s Global Gateway initiative and the EU-Latin America and Caribbean Global Gateway Investment Agenda. It supports sound projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors. Investing in connectivity is at the very heart of what EIB Global does, building on the Bank’s 60 years of experience in this domain. Alongside our partners, fellow EU institutions and EU Member States, we aim to support investment of €100 billion, around one-third of the overall target of the initiative, by the end of 2027.
