IIC Approves A Loan Of Up To US$4 Million For Ecuador'S Hydroelectic Sector
12/06/2005Washington, DC - On December 6, 2005, the Inter-American Investment Corporation (IIC) approved a loan for up to US$4 million to Ecuador's Hidroabanico S.A. The loan proceeds will be used to build a mini hydroelectric power plant in the town of Macas that will generate 37.5 MW of clean energy. The IIC approved a first loan to Hidroabanico in October 2004 to finance the initial phase of this project.
The Hidroabanico project consists of building a mini hydropower plant near the town of Macas in the Amazon River basin to generate 37.5 MW of clean energy that will replace polluting energy sources and create jobs in an economically depressed area. The run-of-the-river plant will generate hydropower from the flow of the Abanico River, making it unnecessary to build a water reservoir. Hidroabanico will sell a portion of the energy it generates to private companies in Ecuador. According to calculations by the World Bank's Carbon Finance Unit, the power generated by the project will reduce greenhouse gas emissions by approximately 806,280 tons over a six-year period. The project will have a positive social impact in that it will increase the water supply for the town of Macas, in addition to generating 180 direct jobs and 200 indirect jobs during the eighteen-month building phase.
The Inter-American Investment Corporation is a multilateral financial institution that is part of the Inter-American Development Bank Group. It provides financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. The IIC's mission is to promote the economic development of its regional member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size.
Contact: John Beckham/Ricardo Rico
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