IIC Grants US$7 Million Loan to Build Hydropower Plant in Ecuador
10/21/2004WASHINGTON, DC – On October 20, the Inter-American Investment Corporation (IIC) has approved a US$7 million loan to Hidroabanico S.A. for building a mini hydroelectric power plant to generate 14.9 MW of clean energy near the town of Macas in the Amazon river basin.
Hidroabanico will be a run-of-the-river plant, so it will not be necessary to build a reservoir. Such plants are easier and safer to operate than plants that require a reservoir to store water. Between 50% and 70% of the energy generated at the plant will be sold through power purchase agreements with the Coca-Cola bottling company, the PICA group, and Int. Food Services Corporation. According to the World Bank , energy produced by the Hidroabanico project will avoid emissions equivalent to some 615,000 tons of CO2 (greenhouse gases) through 2012. Moreover, the project is expected to benefit from the purchase of carbon credits by the World Bank and will help Ecuador meet its objectives under the Kyoto Protocol. The project will have a significant social benefit in that it will increase the water supply for the towns near Macas and generate 180 direct and 200 indirect jobs in an economically depressed area. By granting a long (eight-year) repayment period, the IIC will further the development of small and medium-size companies that operate in the infrastructure sector in Ecuador.
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 borrowing member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. For more information on the IIC's activities, visit its Web site at www.iic.int.
Contact: Steven Reed/Jorge Ciurlizza
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