The European Investment Bank (EIB) has approved a US$125m loan for the implementation of the Ecuadorian side of the 500 kV power interconnection system between Ecuador and Peru. The loan will allow the completion of the total investment of US$290m to start the bidding and construction processes of the definitive interconnection line with Peru.
The interconnector is a key component of the Sistema de Interconexión Eléctrica Andina consisting of a 550 km high-voltage transmission line from the Chorrillos substation in Ecuador to the Nueva Piura substation in Peru. The project will be implemented by Corporación Eléctrica del Ecuador (CELEC), the Ecuadorian state-owned energy company responsible for the generation, transmission and distribution of electricity in Ecuador. On the Peruvian side, the project will be developed under a private concession model, which includes 30 years of commercial operations. The Ecuador-Peru 500 kV Electrical Interconnection Project is expected to be fully operational by August 2027