Ecuador Secures $300 Million IDB Loan to Boost Electricity Network
Ecuador has received approval for a $300 million loan from the Inter-American Development Bank (IDB) to enhance its electrical system, according to the country’s Finance Ministry. The funds will strengthen energy infrastructure, promote renewable power, and expand access in remote areas.
IDB Support for Sustainable Growth
The investment forms part of the IDB Group’s Amazonia Siempre initiative, which promotes sustainable development, forest conservation, and better living conditions in the Amazon region. The package includes $270 million from the IDB’s Ordinary Capital, with a 22.5-year repayment term and an eight-year grace period. An additional $30 million will come from the Clean Technology Fund, offered on concessional terms with a 1.19% interest rate over 20 years.
Expanding Access and Renewables
The project aims to modernise over 700 kilometres of transmission lines using advanced conductors to boost network capacity and integrate new renewable energy sources. It also prioritises increasing electricity access in the Amazon region, where an estimated 5,600 rural and urban-marginal households are expected to gain connections to the national power grid by 2031. The funding will also support efforts to expand renewable generation and strengthen transmission infrastructure, helping Ecuador move toward a more sustainable energy future.
World Bank Adds Further Financial Support
On the same day, the World Bank approved a separate $1.1 billion package to bolster Ecuador’s fiscal stability and resilience. Of this amount, $900 million will back fiscal management, private-sector growth, job creation, and social protection measures. The remaining $200 million will enhance government programmes for managing climate, geophysical, and public health risks, reinforcing institutional capacity and improving disaster preparedness.
with inputs from Reuters
