The Government of Ecuador, through the Ministry of Environment and Energy, has secured USD 500,000 in non-reimbursable technical cooperation from CAF – Development Bank of Latin America and the Caribbean. The funds will be channelled through the programme “Comprehensive Support to CELEC for the Expansion of the Power System”, to be implemented over a 36-month period.
The resources will be used to strengthen CELEC EP, Ecuador’s state-owned electricity company, speed up the expansion of the National Transmission System, and structure a portfolio of strategic electricity projects that comply with international technical, environmental and social standards, making them ready for future financing.
This forward-looking planning is particularly relevant given Ecuador’s structural challenges in the power sector, as national electricity demand is expected to grow by up to 76% by 2034, increasing pressure on generation, transmission and grid reliability.
The cooperation programme includes the execution of technical and socio-environmental studies, route and layout alternatives for transmission infrastructure, Environmental and Social Impact Assessments (ESIA), as well as engineering studies and financial profiles for priority projects. In parallel, institutional strengthening actions will be carried out to improve internal processes, management capacity and technological tools, while addressing long-standing bottlenecks in the electricity system.
As a result, the initiative aims to deliver a more robust and execution-ready CELEC EP, a pipeline of investment-ready power projects, improved compliance with project timelines and international standards, and a tangible contribution to a just energy transition. The programme aligns with the UN Sustainable Development Goals, particularly SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action).
In a complementary move, CAF has also granted USD 2 million in non-reimbursable technical cooperation to Ecuador for the “Comprehensive Programme for Strengthening the Aviation Sector”. This initiative focuses on feasibility studies, rehabilitation of aeronautical infrastructure, equipment procurement, and reinforcing the State’s role as planner and regulator.
Both cooperation agreements were signed during an international forum held in Panama, with the participation of Ecuador’s Ministry of Environment and Energy. According to official sources, these agreements underscore how Ecuador’s international relations strategy is translating into concrete outcomes, built on trust, credibility and a clear commitment to sustainable development.
