Ecuador seeks to advance US$1.7bn hydro project

Ecuador's public-private investment department (SIPP) embarked on a new push to advance bidding for the US$1.68bn, 596MW Cardenillo hydroelectric project.

"We're looking to fully complete the prefeasibility phase by June 30 to move forward with the process," PPP secretary Pablo Cevallos told an event.

SIPP plans to incorporate all legal requirements into existing studies related to Cardenillo, in line with PPP regulations, several of which were implemented under a law approved in 2023.

Afterwards, it will be submitted to the finance ministry for approval and can then move toward feasibility.

Any potential additional updates should be included in the feasibility phase to advance the project and launch a tender, Cevallos added.

If prefeasibility closes according to plan, the process could advance quickly, as the project engineering is already completed.

But it remains key that the ministry expedites the process for the fiscal sustainability report, Pablo Ramón, executive director of CEI, a private sector group formed by the construction chamber, told BNamericas.

According to data from the energy ministry, US$17mn is available for studies to obtain environmental licenses, update costs and acquire land.

Although studies and designs for the project have been in place since 2013, progress has been slow, and previous governments even considered conducting new studies.

According to the country's electrification master plan, Cardenillo should be operational in 2030.

The hydroelectric project will straddle the provinces of Azuay and Morona Santiago. It will be part of Ecuador's largest hydroelectric complex, comprising the Paute, Mazar and Sopladora plants.

Cardenillo and the US$4.38bn Santiago hydroelectric project were added to the PPP registry last month.

Both plants are considered vital to addressing the US$19bn deficit in electricity generation and transmission infrastructure by 2030, according to SIPP data.