Ecuador modernizing energy sector with help from the IDB
Ecuador is carrying out investments and reforms in its energy sector with assistance from the Inter-American Development Bank (IDB).
These measures seek to strengthen institutions in Ecuador’s energy sector, enhance the sustainability of its electrical grid, ease the system’s current dependence on fossil fuels, broaden rural communities’ access to energy, and move forward with the strategy of regional electrical interconnection.
The modernization of Ecuador’s electrical sub-sector will allow for implementation of its national initiative to substitute the use of liquefied gas from oil with electricity, thereby cutting consumption of fossil fuels in the residential sector.
These changes will be financed with a policy-based programmatic loan (PBP) totaling $500 million for Ecuador, which was approved on February 4 by the IDB’s Board of Executive Directors. The PBP is a quick-disbursement tool that will provide the government of Ecuador with resources to finance its high-priority programs.
This first transaction will help maintain liquidity and will support the institutional changes needed to maximize the positive impact of these energy sector investments.
The IDB loan is over 20 years, with a grace period of 12 years, and a variable interest rate linked to the LIBOR.
Ecuador is carrying out investments and reforms in its energy sector with assistance from the Inter-American Development Bank (IDB).
These measures seek to strengthen institutions in Ecuador’s energy sector, enhance the sustainability of its electrical grid, ease the system’s current dependence on fossil fuels, broaden rural communities’ access to energy, and move forward with the strategy of regional electrical interconnection.
The modernization of Ecuador’s electrical sub-sector will allow for implementation of its national initiative to substitute the use of liquefied gas from oil with electricity, thereby cutting consumption of fossil fuels in the residential sector.
These changes will be financed with a policy-based programmatic loan (PBP) totaling $500 million for Ecuador, which was approved on February 4 by the IDB’s Board of Executive Directors. The PBP is a quick-disbursement tool that will provide the government of Ecuador with resources to finance its high-priority programs.
This first transaction will help maintain liquidity and will support the institutional changes needed to maximize the positive impact of these energy sector investments.
The IDB loan is over 20 years, with a grace period of 12 years, and a variable interest rate linked to the LIBOR.
