BEIJING – Ecuador has signed an agreement with Eximbank of China by which the bank will finance an electrical power transmission system originating at Coca Codo Sinclair, the country’s largest hydroelectric plant, which is expected to become operational in January 2016.
The agreement was sealed Wednesday during the visit by Ecuador’s Coordinator Minister of Strategic Sectors, Rafael Poveda, who will hold several meetings in the Asian country from Wednesday to Friday to encourage investments in the oil and electricity sector.
According to an official statement, Eximbank will provide $509 million for the project whose estimated total cost is around $602 million.
The network will serve to distribute through the national grid the energy produced by the Coca Codo Sinclair hydroelectric plant, which on completion will have a capacity of 1,500 megawatts.
“This financial agreement marks a historic milestone in our electrical energy policy in Ecuador,” said Poveda at the Eximbank headquarters in Beijing.
The accord was signed by the director of public negotiation and finance of the Ecuadorian Finance Ministry, Luis Villafuerte, and the Deputy Director-General of Eximbank’s Business Department, Yu Wen.
The transmission system under construction in Ecuador will be 500 kV and, according to the statement, will not only allow the energy to flow into the national grid, but will increase the reliability and strengthen the infrastructure of the national transmission system.
With this agreement, Eximbank adds to its investment portfolio yet another project in Ecuador, where it is already involved in hydroelectric projects such the Coca Codo Sinclair, Minas-San Francisco and Sopladora.