WASHINGTON – The Inter-American Development Bank (IDB) Board of Executive Directors has approved a Conditional Credit Line for Investment Projects (CCLIP) of $1 billion aimed at improving electricity supply in Ecuador.
Within this new credit line, the Board also approved an initial individual operation for $270 million, along with a $30 million loan from the Clean Technology Fund. This financing seeks to support improvements in the reliability and capacity of Ecuador’s electricity transmission system.
The program backed by the new CCLIP will contribute, among other benefits, to reducing 1.3 million tons of CO₂ emissions by displacing fossil fuels traditionally used to maintain electricity service quality. It will also enable more than 5,600 new households in the Ecuadorian Amazon region to connect to the grid by 2031.
The program will fund the modernization and digitalization of control centers and connection points for strategic power generation plants, increase transmission system capacity to interconnect new generation — especially renewable — and upgrade more than 700 km of transmission lines with advanced conductors.
Additionally, in the electricity distribution sector, substations will be reinforced, control centers modernized to better integrate distributed generation (such as in San Cristóbal in the Galápagos Islands), and projects financed to extend the grid and improve access in rural and underserved areas of the Ecuadorian Amazon.
This program is part of Amazonia Forever, an IDB Group initiative for sustainable development in the region, which aims to work together on forest and climate conservation and improve people’s quality of life by offering economic alternatives.
The first operation for $270 million has a repayment term of 22.5 years, an 8-year grace period, an interest rate based on SOFR, and a local counterpart of $78.3 million.
The $30 million loan from the Clean Technology Fund has a repayment term of 20 years, an 8-year grace period, and an annual interest rate of 1.19%.
About the IDB
The Inter-American Development Bank (IDB), a member of the IDB Group, is devoted to improving lives across Latin America and the Caribbean. Founded in 1959, the Bank works with the region’s public sector to design and enable impactful, innovative solutions for sustainable and inclusive development. Leveraging financing, technical expertise, and knowledge, it promotes growth and well-being in 26 countries. Visit our website: www.iadb.org/en.
Simon,Luis Alejandro
Project Information
Resilient Investments in Electric Power Transmission and Distribution in Ecuador.
Ecuador and The IDB