EIB Global provides $125m in funding to support interconnection project between Ecuador and Peru

1. The loan agreement of $125 million was signed in Quito by various officials for the implementation of a power interconnection system between Ecuador and Peru.
2. The project aims to improve power supply security, reduce generation costs, and foster regional power trade between the two countries.
3. The interconnector is part of the Sistema de Interconexión Eléctrica Andina and will be implemented by CELEC EP to increase electricity transmission capacity in Ecuador and Peru.

The European Investment Bank (EIB) and Empresa Pública Estratégica Corporación Eléctrica del Ecuador (CELEC EP) signed a $125 million loan agreement in Ecuador’s capital to finance a power interconnection system between Ecuador and Peru. The project aims to improve power supply security, optimize market cost structures, and promote regional power trade. The interconnector is part of the Sistema de Interconexión Eléctrica Andina and will increase electricity transmission capacity between the two countries.

The president of the EIB highlighted the importance of supporting the project to enhance electricity supply security and trade while contributing to decarbonization and climate change mitigation. The CEO of CELEC EP emphasized that the interconnection will enable efficient and secure electricity trade between Ecuador and Peru, ensuring a reliable electricity supply for Ecuador. The project is part of the EU Global Gateway initiative and is co-financed by the Inter-American Development Bank with an additional $125 million loan.

Overall, the loan agreement between EIB and CELEC EP will fund the implementation of the power interconnection system, benefiting both Ecuador and Peru by enhancing electricity supply security, promoting regional power trade, and contributing to sustainable economic development in the region.

Source link