Completed Mixed AidData Chinese Aid

China Eximbank provides $484.6 million buyer's credit loan for 500KV & 230KV Transformation Lines and Substations Project (Linked to Record ID#38935, #35818, #91361, #96293)

$484.67M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Ecuador
Country	Ecuador
Start Date	Oct 29, 2014
End Date	Jan 19, 2026
Duration	4,100 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`58432`

Grant Description

China Eximbank provides $484.6 million buyer's credit loan for 500KV & 230KV Transformation Lines and Substations Project On October 29, 2014, China Eximbank and the Government of Ecuador’s Ministry of Finance signed a $509,232,822.65 buyer's credit loan (BCL) agreement [Contract No. 1410302052014211795] for the 500KV & 230KV Transformation Lines and Substations Project.

The face value of the BCL was subsequently downsized to $484,668,867.74.

📋 Loan / Grant Terms

📅 Maturity15 years

⏳ Grace Period3 years

The borrower was responsible for making 24, equal, semi-annual principal payments to the lender (on March 21 and September 21 of each year).

The proceeds of the BCL were to be used by the borrower to finance 85% of the cost of a $599,097,509 commercial contract [ID# 035-2013] between Harbin Electric Company Limited and the Corporación Eléctrica del Ecuador (CELEC E.P.), which was signed on July 26, 2013. $203,515,143.67 had been disbursed through the BCL as of July 2018.

The borrower made principal repayments worth $19,650,637.58 on September 21, 2018, $20,796,995.20 on March 21, 2019, $21,153,392.14 on September 21, 2019, $21,153,392.14 on March 21, 2020, and $25,119,653.17 on March 21, 2022.

It did not make any principal repayments on the originally scheduled repayment dates of September 21, 2020, March 21, 2021, September 21, 2021, and September 21, 2022.

The loan’s (principal) amount outstanding was $465,018,230.16 as of September 21, 2018, $444,221,234.96 as of March 21, 2019, $423,067,842.82 as of September 21, 2019, $401,914,450.68 as of March 21, 2020, $401,914,450.68 as of September 21, 2020, $401,914,450.68 as of March 21, 2021, $401,914,450.68 as of September 21, 2021, $401,914,450.68 as of December 31, 2021, $376,794,797.51 as of March 21, 2022, $376,794,797.51 as of September 21, 2022, and $376,794,797.51 as of November 30, 2022.

The purpose of the project was to evacuate electricity from the Coca Codo Sinclair hydroelectric power plant and the Sopladora hydroelectric power plant, both of which were constructed with financial support from China Eximbank (captured via Record ID#38935 and Record ID#35818).

The project had four objectives: (1) construction of a 500kV transmission line that runs from the Coca Codo Sinclair substation to the San Rafael substation and the El Inga substation in Quito within Pichincha province; (2) construction of a 500kV transmission line that runs from the Chorrillos substation (in Guayaquil within Guayas province) to the Tisaleo substation (in Tungurahua province) and the El Inga substation in Quito; (3) construction of a 230kV transmission line that runs from the Blower substation to the Taday substation and the Taura substation; and (4) construction of a 230kV transmission line that runs from the San Rafael substation to the Jivino substation and the Shushufindi substation.

Harbin Electric Company Limited was the EPC contractor responsible for implementation. Project implementation commenced in 2013 but was temporarily halted in May 2016. During the project’s peak construction period, it generated 4,200 local jobs. The project was officially completed on June 13, 2019.

A temporary project handover certificate was issued on November 22, 2019. A final project handover certificate was issued on November 20, 2020. However, the China Eximbank loan (BCL) that supported this project has underperformed.

It was rescheduled twice — once in September 2020 (as captured via Record ID#91361) and again in September 2022 (as captured via Record ID#96293).

📋 Staff Comments

The Spanish project title is El Sistema de Transmisión 500kV y Obras Asociadas. The Chinese project title is 厄瓜多尔500kV输变电项目.
The loan agreement was signed by the Director of Public Negotiation and Finance at the Ecuadorian Finance Ministry, Luis Villafuerte, and the Deputy Director General of China Eximbank's Business Department, Yu Wen.
For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
The loan agreement can be accessed in its entirety via https://www.dropbox.com/scl/fi/8003ppctpl6ibluwntllz/Ecuador-2014-China-Eximbank-Buyer-s-Credit-Loan-Agreement-for-500KV-230KV-Transformation-Lines-and-Substations-Project.pdf?rlkey=m4lyzc7c9b3y307t59v9teevd&dl=05. The September 2022 loan rescheduling agreement can be accessed in its entirety via https://www.dropbox.com/s/txlgx4zeh73qxvj/13%20September%202022%20Amendment%20Agreement%20related%20to%20BCL%20for%20500kV%20Transmission%20Project.pdf?dl=0.
The Ecuadorian Ministry of Finance loan identification number is 23178000.
The subsidiary loan agreement between CELEC E.P. and the Ecuadorian Ministry of Finance can be accessed in its entirety via https://www.dropbox.com/scl/fi/ox88vsz9unq0g0mjqim1k/Anexo-9-Convenio-subsidiario-suscrito-por-el-MEF-y-la-Celec-EP.pdf?rlkey=ofwhd9afdl8fkeecjbvlqm5wu&dl=08. An ex ante (expected) amortization table from the Ecuadorian Ministry of Finance can be accessed via https://www.dropbox.com/scl/fi/wmb8253z04os0glwll4kl/Anexo-18-TABLA-DE-AMORTIZACION-PROYECTO.pdf?rlkey=zrqasdknzvz4d2ckdvue4btpv&dl=0

📚 Sources & References

Amendment Agreement
Anexo 13 ACUERDO 0294 Delegación MEF para firma convenio
Anexo 14 ACUERDO 0282 Delegación MEF para firma convenio
Anexo 16 MEMORANDO MF-CGJ-2014-226. Se informa sobre sometimiento a arbitraje
Anexo 17 OFICIO 18896 Procuraduría aprueba arbitraje bajo ley inglesa
Anexo 18 TABLA DE AMORTIZACION PROYECTO
Anexo 3 OFICIO SENPLADES-SGPBV-2014-0016-OF. Andrés Arauz emite dictamen de prioridad actualizado
Anexo 4 OFICIO SE-DM-2014-0073-O. Rafael Poveda pide a Eximbank agilizar firma contrato crédito
Anexo 5 OFICIO CELEC-EP-2014-0040-OFI. Envío al MEF Certificación Plan Anual inversión 2014
Anexo 7 Memorando MF-SFP-2014-234. Se informa sobre avances de la negociación
Anexo 8 Acta Resolutiva 017. Comité Deuda aprueba préstamo Eximbank por US$509 millones
Anexo 9 Convenio subsidiario suscrito por el MEF y la Celec-EP
Base-de-Datos-Boletin-de-Deuda-Noviembre-2022
Building Development for a New Era: China’s Infrastructure Projects in Latin America and the Caribbean
CELEC EP suscribió Contrato para la Construcción del Sistema de Transmisión de Extra Alta Tensión a 500 KV
Certific estudios factibilidad y evaluación eco-financiera
China-Latin America Finance Database
China’s Eximbank to finance Ecuador’s power transmission system
China’s Harbin Electric International Co.
Ltd Contracts its First Transmission Line Project in South America
Contratos de crédito externos e internos_julio 2018
Contratos de crédito externos e internos_marzo2015
Convenio de Préstamo de Crédito al Comprador
Cuaderno-Estadístico-Agosto-2022
Cuaderno-Estadístico-Boletín
Ecuador 2014 China Eximbank Buyer's Credit Loan Agreement for 500KV & 230KV Transformation Lines and Substations Project
Ecuador Country Profile
Ecuadorian Government Holds Grand Celebration for Completion of G System of 500kV Power Transmission and Transformation Project Undertaken by HEI
El detalle de los contratos de crédito externos o internos
El Inga–Tisaleo Project to complete by mid-2019 in Ecuador
Estadísticas Deuda Pública
ESTUDIO DE IMPACTO AMBIENTAL SISTEMA DE TRANSMISIÓN DE EXTRA ALTA TENSIÓN 500 KV Y SISTEMAS ASOCIADOS 230 kV
HEI: Entry into the World’s High-end Power Station EPC Field within Five Years（International Chapter）
LA GRIETA DE USD 2000 MILLONES DE COCA CODO SINCLAIR
Literal-l-Contratos-de-créditos-externos-e-internos.pdf
LOS NOMBRES DE COCA CODO SINCLAIR
Línea de Tiempo
MEMORANDO No. MF-SFP-2014 234
PERFIL INTERES DEUDA INTERNA CORTO PLAZO POR SECTORES
Se solicita elaborar convenio subsidiario
Subestacion Pimampiro a 230 mil voltios Imbabura - Ecuador
Subgerencia Proyecto 500kv
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