Ecuador secures loan from Japan for Chachimbiro geothermal project
Ecuador has secured a $43 million loan from Japan which will go towards the development of the Chachimbiro geothermal power project.
A loan agreement has been signed between the governments of Ecuador and Japan that grants a credit of $43 million to Ecuador to be used for the development of the Chachimbiro geothermal project.
The signing ceremony held in the capital city of Quito was attended by Ecuador’s Minister of Foreign Affairs, Gabriela Sommerfeld, and the Japanese ambassador to Ecuador, Keiichiro Morishita, as well as Minister of Energy and Mines Antonio Goncalves, Minister of Economy and Finance, Juan Carlos Vega, and manager of the Electric Corporation of Ecuador (CELEC), Fabián Calero.
Earlier this year, CELEC had issued a call for Expressions of Interest for technical consultancy related to the development fo the Chachimbiro geothermal project. Located in the Imbabura province in northern Ecuador, the site had been extensively studied and has a 2000-m exploratory well.
Development at the Chachimbiro geothermal site is targeting an installed capacity of 50 MW. According to CELEC, the construction of the geothermal power plant has an estimated budget of $250 million.
“Japan’s financial and technical support through this loan will allow us to efficiently take advantage of our country’s geothermal resources, guaranteeing a clean, stable and reliable energy supply for future generations,” said Sommerfeld during the signing event.
Source: KCH and Ecuadorian Foreign Ministry via Twitter
