2024.10.25
On October 24, the Japan International Cooperation Agency (JICA) signed a loan agreement with the Empresa Pública Estratégia Corporación Eléctrica del Ecuador in the capital city, Quito, to provide Japanese ODA loan for the Chachimbiro Geothermal Development Project (Phase I)
Signing ceremony
Outlines on the project are provided as below.
Terms and Amount of Loan
- Project Title
Chachimbiro Geothermal Development Project (Phase I)
- Country (Target Areas)
Republic of Ecuador
Imbabura Province
- Project Objective
This Project will contribute to the promotion of sustainable economic and social development in Ecuador by constructing a geothermal power plant in the province of Imbabura in northern Ecuador, thereby promoting the use of renewable energy, diversifying power sources, and increasing power generation capacity, while also contributing to climate change mitigation. The current loan will cover exploratory well drilling and engineering services (E/S) related to the F/S of the Phase II loan (power plant construction) to promote smooth implementation of the Project.
- Project Component
(a) Preparation work (excavation site development, access roads, etc.) (not covered by yen loans)
(b) Procurement of drilling equipment and materials
(c) Drilling of exploratory wells (4 exploratory wells and 1 reinjection well)
(d) Consulting services (drilling supervision and procurement support, fumarole testing, resource evaluation, F/S preparation for power plant construction, etc.)
(e) Temporary construction of power distribution lines (approx. 20 km) (not covered by yen loan)
- Maximum Loan Amount
6,582 million Japanese Yen
- Annual Interest Rate
Project: 1.15%, Consulting Services: 0.01%
- Repayment Period
30 Years
- Grace Period
10 Years
- Procurement
Untied
Preferential Terms (Global Environmental Problems and Climate Change)
- Executing Agency
Empresa Pública Estratégica Corporación Eléctrica del Ecuador - CELEC EP
- Contribution to SDGs
Goal 7 Affordable and clean energy
Goal 13 Climate action
- Planned Implementation Schedule
1. Completion of the Project: August, 2029, when consulting service ends
2. Request for Proposal for consulting services (including detailed design work): First Quarter, 2025
3. Tendering of announcement of initial procurement package for international competitive bidding on project construction:Package for well drilling equipment and materials
Release date: April, 2026
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