document of the inter-american development bank
TRANSCRIPT
PUBLIC
SIMULTANEOUS DISCLOSURE
DOCUMENT OF THE INTER-AMERICAN DEVELOPMENT BANK
ECUADOR
NATIONAL TRANSMISSION SYSTEM STRENGTHENING PROGRAM
(EC-L1117)
LOAN PROPOSAL
This document was prepared by the project team consisting of Jesús Tejeda (ENE/CEC),
Project Team Leader; Arnaldo Vieira de Carvalho (INE/ENE), Project Team Co-leader;
Carlos Hinestrosa (INE/ENE); Carlos J. Echevarría (ENE/CPE); Paola Méndez (INE/ENE);
Juan Carlos Páez (INE/ESG); Rafael Poveda (CAN/CEC); Gumersindo Velázquez
(FMP/CEC); Patricio Crausaz (FMP/CEC); Mónica Lugo (LEG/SGO); under the supervision
of Alejandro Melandri, Interim Chief of the Energy Division (INE/ENE) and Morgan Doyle,
Representative in Ecuador (CAN/CEC).
This document is being released to the public and distributed to the Bank’s Board of Executive Directors
simultaneously. This document has not been approved by the Board. Should the board approve the
document with amendments, a revised version will be made available to the public, thus superseding and
replacing the original version.
CONTENTS
PROJECT SUMMARY
I. DESCRIPTION AND RESULTS MONITORING ........................................................................ 1
A. Background, current situation, and proposal ........................................................... 1 B. Objectives, components, and costs .......................................................................... 9 C. Results Matrix ........................................................................................................ 10
II. FINANCING STRUCTURE AND MAIN RISKS ....................................................................... 11
A. Financing instruments ............................................................................................ 11 B. Environmental and social safeguard risks and associated mitigation measures ... 12
C. Fiduciary risk ......................................................................................................... 13 D. Execution risks ....................................................................................................... 13
E. Other special considerations and risks ................................................................... 13
III. SUMMARY OF IMPLEMENTATION MEASURES ................................................................... 14
A. Execution arrangements and period ....................................................................... 14
B. Summary of arrangements for results monitoring and evaluation ........................ 15
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ANNEXES
Annex I Summary Development Effectiveness Matrix (DEM)
Annex II Results Matrix
Annex III Fiduciary Agreements and Requirements
ELECTRONIC LINKS
REQUIRED
1. Annual work plan (AWP) http://idbdocs.iadb.org/wsdocs/getDocument.aspx?DOCNUM=38270585
2. Monitoring and Evaluation Plan (M&E)
http://idbdocs.iadb.org/wsdocs/getDocument.aspx?DOCNUM=38270583
3. Complete Procurement Plan
http://idbdocs.iadb.org/wsdocs/getDocument.aspx?DOCNUM=38270596
4. Environmental and Social Management Report
http://idbdocs.iadb.org/wsdocs/getDocument.aspx?DOCNUM=38228050
OPTIONAL
5. Technical and environmental studies and specifications for electric works
http://idbdocs.iadb.org/wsdocs/getDocument.aspx?DOCNUM=38581748
http://idbdocs.iadb.org/wsdocs/getDocument.aspx?DOCNUM=38666685
6. Technical, economic, and financial evaluation
http://idbdocs.iadb.org/wsdocs/getDocument.aspx?DOCNUM=38270587
7. Projected cash flow for the program
http://idbdocs.iadb.org/wsdocs/getDocument.aspx?DOCNUM=38270590
8. Midterm evaluation of loan 2457/OC-EC
http://idbdocs.iadb.org/wsdocs/getDocument.aspx?DOCNUM=38270594
9. Program rationale under the Public Utilities Policy (document GN-2716-4)
http://idbdocs.iadb.org/wsdocs/getDocument.aspx?DOCNUM=38567771
10. Piura Peru-Ecuador Extra High Voltage International Interconnection Agreement
http://idbdocs.iadb.org/wsdocs/getDocument.aspx?DOCNUM=38280643
11. Terms of reference for the final evaluation of the program
http://idbdocs.iadb.org/wsdocs/getDocument.aspx?DOCNUM=38326626
12. Paul L. Joskow, Patterns of Transmission Investment
http://idbdocs.iadb.org/wsdocs/getDocument.aspx?DOCNUM=38274468
13. Master Plan for Electrification of Ecuador 2013-2022. CONELEC
http://idbdocs.iadb.org/wsdocs/getDocument.aspx?DOCNUM=38272441
14. Plan Nacional del Buen Vivir 2013-2017
http://www.senplades.gob.ec/
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ABBREVIATIONS
AWP Annual work plan
CEA Andean Electric Corridor
CELEC EP Corporación Eléctrica del Ecuador [Ecuador Power Corporation]
CENACE National Energy Control Center
CONELEC National Electricity Board
EIA Environmental impact assessment
EIRR Economic internal rate of return
ESMP Environmental and Social Management Plan
GDP Gross domestic product
IIS Integrated information system
km Kilometers
kV Kilovolts
LOEP Ley Orgánica de Empresas Públicas [Organic Law on Public Enterprises]
LPG Liquefied petroleum gas
LRSE Law on the Power Sector Regime
MC-09 Mandato Constituyente [Constituent Assembly Legislative Decree] 09
MC-15 Mandato Constituyente [Constituent Assembly Legislative Decree] 15 of
2008
MEER Ministry of Electricity and Renewable Energy
MEM Wholesale Electricity Market
MF Ministry of Finance
MVA Megavolt-ampere
MVAR Megavolt-ampere reactive
MW Megawatts
MWh Megawatt hour
NPV Net present value
PDU Power distribution utilities
PET Transmission Expansion Plan
PME Master Plan for Electrification of Ecuador 2013-2022
PMU Program Management Unit
PNBV Programa Nacional del Buen Vivir [“Good Life” National Program]
SINEA Andean Electric Interconnection System
SNI National Interconnected System
SNT National Electric Transmission System
System 500 500 kV Transmission System
PROJECT SUMMARY
ECUADOR
NATIONAL TRANSMISSION SYSTEM STRENGTHENING PROGRAM
(EC-L1117)
Financial Terms and Conditions
Borrower: Republic of Ecuador Flexible Financing Facility*
Amortization period: 25 years
Executing agency: Corporación Eléctrica del Ecuador (CELEC EP) Weighted Average Life: 15.25 years**
Disbursement period: 5 years
Source Amount (US$) Grace period: 13 years**
IDB - Ordinary Capital 150,000,000 Inspection and supervision fee: ***
Local contribution 19,500,000 Interest rate: LIBOR-based
Total 169,500,000 Credit fee: ***
Currency: U.S. dollars charged to
the Ordinary Capital
Program at a Glance
Program objective and description: To help improve the operating conditions of the National Transmission System (SNT) and ensure the
supply of high-quality energy to consumption centers, nationally and regionally. The specific objectives are: (i) to strengthen the 230 kV
and 138 kV systems of the SNT; (ii) to increase the reliability of the SNT; and (iii) to contribute to regional Extra High Voltage energy
integration, as part of the Andean Electric Corridor
Special contractual conditions precedent to the first disbursement: (i) signing and entry into effect of a subsidiary agreement between
the Ministry of Finance and the executing agency establishing the obligation to use the funds in accordance with the terms and purposes
agreed in the loan contract (paragraph 3.1); (ii) the executing agency’s establishment of the Program Management Unit (PMU), comprising
a general coordinator, a procurement specialist, a financial specialist, an environmental specialist, an electrical engineer, and a computer
engineer, as agreed with the IDB (paragraph 3.1); (iii) establishment by the executing agency of a short list for hiring an external firm to
audit the program’s financial statements and preparation of the corresponding terms of reference, approved by the IDB (paragraph 3.1); and
(iv) presentation of an updated version of the program operating manual, duly approved by CELEC EP, and its entry into effect with the
IDB’s no objection (paragraph 3.5).
Special contractual conditions for execution: Before starting the works covered in component I, the executing agency will present, to the
Bank’s satisfaction, evidence of: (i) the permits and licenses required under Ecuadorian law for constructing the projects under the program
(paragraph 3.6); (ii) the Environmental Impact Assessment (EIA) and the Environmental and Social Management Plan (ESMP), together
with the budget for their execution (paragraph 2.4); (iii) the corresponding environmental license (paragraph 2.4); (iv) the resolution
reserving rights-of-way for the new transmission lines (paragraph 2.4); (v) legal ownership of the land where the substations will be located
(paragraph 2.4); (vi) inclusion of the required environmental technical specifications and the ESMP in the contracts for construction and
supervision of the planned works (paragraph 2.4); and (vii) evidence that at least one public consultation has been held for each project,
including: (a) project description; (b) description of probable impacts; (c) description of measures for mitigating the impacts identified
(ESMP); (d) description of the system for receiving and processing complaints and claims; and (e) arrangements for receiving suggestions
concerning the proposed project or its ESMP (paragraph 2.4).
Retroactive financing and recognition of expenditures: The Bank may provide retroactive financing, charged to the loan proceeds, and
recognize expenditures, charged to the local contribution, up to an amount equivalent to 20% of the loan or the local contribution,
respectively, for eligible expenditures incurred prior to the loan approval date related to preinvestment studies for the program, provided
that such expenditures meet requirements substantially similar to those established in the loan contract (paragraph 3.2).
Exceptions to Bank policies: None
Project qualifies as: SEQ [ ] PTI [ ] Sector [ ] Geographic [ ] Headcount [ ]
* Under the Flexible Financing Facility (FN-655-1), the borrower has the option of requesting changes to the amortization schedule and currency and
interest rate conversions. When considering such requests, the Bank will take operational and risk management considerations into account. ** The original weighted average life of the loan and the grace period may be shorter, depending on the effective signature date of the loan contract. ** The credit fee and inspection and supervision fee will be established periodically by the Board of Executive Directors as part of its review of the Bank’s
lending charges, in accordance with the applicable policies.
I. DESCRIPTION AND RESULTS MONITORING
A. Background, current situation, and proposal
1.1 Background. Ecuador is pursuing a development model, the guidelines of which
were set forth in the 2008 Constitution and reflected in the Plan Nacional del Buen
Vivir 2013-2017 [“Good Life” National Plan 2013-2017] (PNBV). That model
calls for strengthening the role of the State as a driver of the economy and as a
provider of public goods and services, in particular infrastructure, health, and
education.
1.2 With the reforms introduced by the government, the Republic of Ecuador recorded
average annual growth rates of 4.6% between 2008 and 2012, and the nonoil
economy1 averaged rates of 4.8%. This growth reduced the poverty level from
29.5% in 2011 to 23.7% in 2013. Over that same time the Gini index, which
measures degrees of inequality, declined from 0.497 to 0.463. During the first
quarter of 2013, the Central Bank reported GDP growth of close to 3.5%. In this
context, investments in the energy sector are defined in accordance with the
guidelines in the PNBV and the Master Plan for Electrification 2013-2022 (PME),
aimed at achieving efficient, sustainable, and sovereign development.
1.3 Planning for the sector as laid out in the PME is based on the projection of demand
for electric power. That planning considers not only population and consumption
growth trends but also the projected new power demands resulting from mining
projects, the Pacific Refinery, the National Efficient Cooking Program, the
Petroamazonas Project for Optimizing Power Generation and Energy Efficiency,
the national program for changing the country’s energy matrix, electrically powered
public transit (the Quito Metro and the Cuenca Tranvía), and the initiative for
regional energy integration. The PME calls for developing the system to ensure that
sufficient energy reserves are available to satisfy national demand, to optimize
operating costs through international connections, and to guarantee Ecuador’s
capacity to contribute to the regional power market. To achieve these goals, the
PME cites as critical elements reliability, quality, and security in the generation,
transmission, and distribution of electric power.
1.4 The PME projects the demand for electricity using a base scenario that correlates
macroeconomic,2 demographic as well as energy and customer variables to
determine the expected trend of demand to the year 2022. As a result, it estimates
average annual growth of 5% between 2012 and 2022, reaching 26,542 gigawatt-
hours at the end of that period. This corresponds to a maximum generating capacity
of 4,723 megawatts (MW) for meeting demand in 2022. A more optimistic
scenario, which assumes full development of the strategic projects planned for
1 Nonoil GDP represents approximately 87% of total GDP.
2 The PME makes reference to a decline in the growth rate of the national economy, which affects the
industrial, residential, and commercial demand projections in which GDP was used as an explanatory
variable. As a result, average growth is estimated at 3.7% (2012-2022), below the historic average growth
rate of 4.7% (2000-2012).
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coming years (paragraph 1.3), implies growth exceeding 8%, equivalent to
6,864 MW at the end of that same period.
1.5 Electric power infrastructure. In 2013, Ecuador’s power system had an installed
generating capacity of 4,543 MW, of which hydroelectric generation accounted for
2,255 MW and thermal generation for 2,287 MW. There are new hydropower
projects now under construction, for an additional capacity of 4,165 MW. Eight of
those projects, equivalent to 2,362 MW, are regarded by the government as flagship
projects. The flagship hydropower projects located in the Amazon basin and on the
Pacific coast are expected to come on stream beginning in 2014.3
1.6 At the present time, the National Electric Transmission System (SNT) has 1,841 km
of 230 kV4 transmission lines and 1,718 km of 138 kV lines.
5 The transmission
lines are arranged in a 230 kV trunk ring with double circuit lines interconnecting
10 substations and linking the Paute hydroelectric plant, the country’s largest
generating plant, with the two most important consumption centers of Guayaquil
and Quito, as well as the rest of the country. The SNT also has 138 kV radial
transmission lines fed from the trunk ring to link power generation centers with
consumption centers. To meet the additional energy requirements of the power
distribution utilities (PDU), there are approximately 115 km of circuits operating at
69 kV.6 As part of the existing transmission infrastructure, the country has
international connection lines, and these helped to alleviate the country’s power
crisis during 2009. In 2003, 212 km of 230 kV transmission lines came on-stream
with Colombia, and in 2008 construction of a second line of the same caliber
enabled the transfer of up to 500 MW. In 2004 the interconnection with Peru came
online, with construction of 107 km of 230 kV transmission lines. This circuit
allows the noncontinuous transfer of up to 100 MW between the two countries.
1.7 Legal framework for the power sector. Legislation governing the power sector in
Ecuador is based on the 2008 Constitution, the “Constituent Mandate 15” (MC-15),
the Law on the Power Sector Regime (LRSE7) as amended (Law 2006-55), the
Organic Law on Public Enterprises (LOEP) of 2009,8 and Executive Decree 220 of
2010, creating the Empresa Pública Estratégica Corporación Eléctrica del Ecuador
[Ecuador Power Corporation] (CELEC EP). The LRSE establishes the regulatory
framework for the power sector and creates the Electric Transmission Company,
3 The amounts of public and private investment needed to carry out the generation expansion plan are
US$6,011,662 and US$1,071,837, respectively. Master Plan for Electrification 2013-2022. 4 1,285 km of double circuit and 556 km of single circuit.
5 625 km of double circuit and 1,093 km of single circuit.
6 The Galapagos Islands are operated as an isolated system of the National Interconnected System.
7 The LRSE and MC-15 set the rules for the sector. Other related provisions include Resolution 173, in which
the Ministry of Environment grants CONELEC accreditation as the responsible environmental authority;
and CONELEC regulation 003/06, specifying those power transmission lines that require environmental
impact assessments. 8 The LRSE sets objectives for power generation, transmission and distribution. The LOEP regulates aspects
concerning the establishment and management of public enterprises, including the strategic sectors.
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Transelectric S.A. Transelectric S.A. began operations in 1999 with the
disappearance of the Ecuadorian Electrification Institute (INECEL). In 2009, the
generating companies of Ecuador and Transelectric were merged, and in 2010
CELEC EP was officially created. Transelectric became a business unit of CELEC
EP, called CELEC EP-Transelectric (hereinafter Transelectric).
1.8 Institutional framework of the power sector. The agency responsible for power
sector policy is the Ministry of Electricity and Renewable Energy (MEER). The
National Electricity Board (CONELEC) is responsible for regulation and control of
the power supply and planning for the sector, subject to the National Development
Plan and the policies of the MEER. The transmission function is concentrated in
Transelectric, with the basic objective of transporting electric power and ensuring
free access to the transmission networks for agents in the Wholesale Electricity
Market (MEM).9 Distribution and marketing of electric power is handled through
10 majority publicly-owned PDUs.10,11
Technical and financial transactions on the
MEM are administered by the National Energy Control Center (CENACE).
1.9 MC-15 requires CONELEC to establish a single rate12
which the PDUs must apply
for each type of consumer. The transmission rate approved in 200813
takes into
account the costs of operation and maintenance, service quality and social and
environmental management as approved by CONELEC, recognizing that the
planned investment amounts are covered as established in MC-15.14
This rate15
is
applied to distributors and large-scale consumers in recognition of the use of the
transmission lines, transformer substations, and other elements that comprise the
SNT. All the PDUs are covered by trust funds administered by specialized
institutions in the local banking system: Banco de Guayaquil and Banco del
Pichincha, privately owned, and the publicly owned Banco del Pacífico. The
revenues of each of the PDUs, including the offset for the reduced power rate
(“tarifa dignidad”) from the government, go into the respective trust funds to
guarantee the payments associated with the provision of service, in the order of
9 The MEM consists of generators, distributors, and large-scale consumers.
10 Responsibility for providing generation, transmission, and distribution services as well as the marketing,
import, and export of electric power lies with the CELEC EP and other firms authorized by law to perform
such functions. 11
The Corporación Nacional de Electricidad (CNEL) has 10 business units and distributes power to
1.3 million customers (36% of the customer market in Ecuador). Other utility firms, serving 1.7 million
customers (46% of the customer market), are Empresa Eléctrica de Quito S.A., Unidad Eléctrica de
Guayaquil, Empresa Eléctrica Regional Centro Sur C.A., Empresa Eléctrica Azogues S.A., and Empresa
Eléctrica Riobamba S.A. 12
According MC-15, the single rate that the PDUs must apply reflects operating and maintenance costs. 13
Pursuant to CONELEC Resolution 0107/08 of 12 August 2008. 14
As of 2008, under MC-15 the government reserves the right to administer, regulate, control, and manage the
sector and provides that investments in generation, transmission, and distribution are to be financed from
the general government budget, eliminating the investment component from the power rate. 15
The transmission rate applicable in 2013 is US$1.77 per kW month of maximum demand (CONELEC,
Resolution 008/2013).
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priority established by the MEER: (i) international interconnections; (ii) generators
using renewable energies under CONELEC regulation 004/11; (iii) generation
exceeding 50 MW; (iv) payment to the PDUs for operation and maintenance; and
(v) transmission service, etc.
1.10 Knowledge of the sector. As part of the strategy for addressing the challenges
facing the SNT (paragraph 1.3), the government is financing the Transmission
Expansion Plan (PET). The Support for the Transmission Program (loan
2457/OC-EC), financed by the IDB in the amount of US$64.7 million, is part of the
PET investment plan being executed by CELEC EP through Transelectric. Loan
2457/OC-EC began execution in 2011, and its objectives include improving
electricity service conditions, minimizing the risks of interruptions in electricity
supply in the different areas of the National Interconnected System (SNI), and
improving the capacity for managing the transmission service of CELEC EP and
Transelectric. As of the first quarter of 2014, loan 2457/OC-EC had been 91%
disbursed, with 100% of the resources committed, and a level of execution of close
to 65%16
for the agreed activities. The last disbursement is planned for February
2015.
1.11 The results achieved with the PET investments in recent years include:
(i) construction of 146 km of 230 kV transmission lines and 143 km of 138 kV
transmission lines; (ii) the rehabilitation, expansion, and construction of nine
substations; and (iii) the increase in the reserve capacity by 1,104 MVA to satisfy
new demand of 60,105 MWh per month. These works have helped reduce
loadability in the Loja substation and the Cuenca-Loja Cumbaratza transmission
line, bringing them within the parameters established by CONELEC regulation
004/02.17
On this basis, the SNT has an additional reserve capacity to meet demand
in the provinces of Loja and Zamora Chinchipe. The works at the Esmeraldas and
Quinindé substations will boost their reserve capacity, ensuring that demand can be
met in accordance with current regulations.18
The investments made under loan
2457/OC-EC in the country’s northern zone will improve efficiency in the transport
of high energy flows as a result of the requirements of the zone itself and of the
138 kV corridor under conditions of maximum power transfer from Colombia,
when the Agoyán and Pucará power plants are offline. This will increase the levels
of reliability of the northern zone of the national grid, the Quito PDU, and the
power exchanges with the Colombian system. The Inga substation will provide a
new feed point from the SNT to the Quito PDU, allowing it to meet the needs of the
new Quito airport and the northeastern zone of the province of Pichincha, as well as
to connect the Coca Codo Sinclair19
and Quijos power plants to the SNI.
16
Component I, for expansion of the transmission network, has a level of execution of 65.7%. 17
Reactive Power Transactions in the MEM, which establishes the permitted SNT bus voltage variation limits
in the 138 kV lines at 0.93 p.u. and 1.05 p.u. 18
Idem. 19
http://www.ccs.gob.ec/.
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1.12 Loan 2457/OC-EC is financing training for members of the 13 business units of
CELEC EP in project management, the procurement of an integrated information
system (IIS),20
and implementation of the Enterprise Resource Planning (ERP)
system. The Ecuadorian government has also used fiscal resources to promote the
adoption of better organizational practices in CELEC EP. During 2013, with the
agreement of the Strategic Sectors Coordinating Ministry (MICSE) and the MEER,
the international consulting firm of Pricewaterhouse Coopers AG Ltda. (PWC) was
hired to conduct a study on a comprehensive upgrade of the management and
operations model and improvement of the efficiency of power sector firms in
Ecuador. As a result of phase 1 of that study, completed in October 2013, a number
of organizational and technological projects have been undertaken with a view to
improving corporate management and enhancing the efficiency of the power sector.
The report on the financial audits of loan 2457/OC-EC, conducted by Deloitte &
Touche S.A., indicates satisfactory financial execution by CELEC EP.21
1.13 Current situation. The growth in demand for electric power in Ecuador has
outstripped supply, leading to an annual deficit that is estimated at more than
100 MW. In 2012, annual energy demand was 6.1% greater than in 2011. Current
reserve margins are high, but they are not available on a permanent basis because of
the great variation in hydrology between the rainy and dry seasons, fuel storage
capacity, and the periodic maintenance requirements of the power plants. The
PME’s high-growth scenario for power demand estimates that additional generating
capacity of approximately 232 MW will be needed on average each year in order to
meet demand to the year 2022, together with a robust, reliable transmission system,
with expanded capacity to take up the energy from the generating projects now
under construction. The main weaknesses that the SNT faces are closely linked to
the country’s energy security and the system’s operating security22
: (i) flexibility
for operating efficiently at times of minimum demand in the binational
interconnections; (ii) boosting capacity in substations that have been operating for
more than 30 years, thus making it possible to meet demand from the PDUs;
(iii) the need to expand the 138 kV sub-transmission system to alleviate saturation
at high consumption points; (iv) low capacity of 230 kV transmission for serving
distribution points; (v) saturation of feeders through rising demand, which entails
building new power delivery points from the SNT in order to improve the quality of
service and offer sufficient capacity; (vi) increasing the 500 kV transformer
capacity so that energy from the new generating projects can be transferred with
lower electricity losses.
20
The IIS has been used to acquire 770 additional light IFS licenses for use of Corporate Phase II,
Maintenance Modules and Projects; 330 full IFS licenses for use of the IFS phase II system. 21
Loan 2457/OC-EC Report, DOCNUM=38274571. 22
The regulations—Dispatch and Operation Procedures (006/00), Reactive Power Transactions in the MEM
(004/02), and Quality of Power Transport and Connection Service in the SNI (003/08)—establish the
quality, security, and reliability parameters that must be observed by the transmitter and all other MEM
agents.
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1.14 In response to these requirements, the government has several hydroelectric
projects under construction (paragraph 1.5), of which around 2,362 MW will come
on stream gradually beginning in 2014. Under loan 2457/OC-EC, CELEC EP is
undertaking additional works in the SNT, including 230 kV, 138 kV, and 69 kV
transmission lines as well as modernization and renovation of substations and sub-
transmission lines more than 30 years old (paragraph 1.10). Currently, construction
is under way on approximately 600 km of Ecuador’s first 500 kV extra high voltage
(EHV) transmission system (System 500) needed to bring the energy from the Coca
Codo Sinclair hydroelectric plant into the SNT, which will connect the Inga
substation in Quito with the Chorrillo substation in Guayaquil.23
1.15 System 500 is a key part of the government strategy for meeting the increased
demand for electric power, and will make it possible to proceed with development
of the Andean Electric Corridor (CEA) as part of the Andean Electric
Interconnection System (SINEA24
), which is planned as an EHV system. The
SINEA initiative had its origins in the Galapagos Declaration signed by the
governments of Bolivia, Chile, Colombia, Ecuador, and Peru on 2 April 2011 at a
meeting in Galapagos, Ecuador. During that meeting, ministers and senior officials
of the power sector agreed on the importance of the benefits that would flow from
electrical interconnection in the region, as a fundamental step for the economic
integration and development of participating countries.
1.16 Proposal. According to the PME, construction of the PET will require
approximately US$95 million a year, without considering the budget for the
projects in execution since 2012. In order to comply with the provisions of
Constituent Mandate 09 (MC-09) and MC-15, and taking into account the
experience and outcomes achieved through loan 2457/OC-EC, the government
considers it appropriate to continue with the same financing scheme, through the
National Transmission System Strengthening Program (the program), with a view
to meeting the financing needs described in the PME and the specifications of the
SNT.25
This will make it possible to connect the planned new loads (paragraph 1.3)
and to structure a robust system for incorporating System 500, which is seen as the
backbone of the CEA. In this way, the program will ensure an adequate supply of
electricity to meet the demand that will be generated by the initiative to migrate
from liquefied petroleum gas (LPG) to electricity for residential customers, and it
will facilitate progress with the binational project to build the first EHV segment
between Ecuador and Peru, pursuant to recent progress made in the negotiations
included under the Piura Agreement.26
23
System 500 will cut across a large portion of the country and will come online in two stages, in 2015 and
2016. 24
The IDB is supporting the SINEA initiative through regional technical-cooperation project RG-T2056. 25
The reliability of the transmission system plays a key role in the investment decision, above and beyond the
standard economic criteria.. Paul L. Jaskow, Patterns of Transmission Investment. MIT. IDBDOCS-
#38274468-Joskow Transmission Investment. 26
Piura Agreement 2013 - construction of the 500 kV Peru-Ecuador EHV line.
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1.17 The country’s strategy. Ecuador has a power sector strategy defined by the
guiding documents, the PNBV 2013-2017 and the PME. In line with the Bank’s
Public Utilities Policy (document GN-2716-6), the sector is consistent27 with the
core principles of supporting basic needs, transparency, financial sustainability, and
adequate institutional organization, in that it has clearly defined the following:
(i) separation of the roles of the MEER, as the policy body, the CONELEC, as the
regulatory body, and the transmission and distribution companies; (ii) the structure
of the sector, which allows private sector participation in generation28
and
distribution; and (iii) reform of the state-owned companies to improve their
management and sustainability based on rates that cover operation and
maintenance, and on government contributions that will guarantee expansion of the
sector. The program to expand and improve the SNT is also aligned with the
objectives of the Bank’s Public Utilities Policy for promoting universal and
sustainable access for electricity service through power rates, and improving the
public utility companies’ ability to provide efficient service.
1.18 Alignment with the IDB strategy with Ecuador. The Country Strategy Update
with Ecuador 2012-2017 (document GN-2680-2) considers that Bank engagement
in the sector will support the country in its effort to create a sustainable energy
strategy, one that will facilitate an adequate supply of energy, help to diversify the
country’s generating capacity, improve the system’s reliability, promote energy
efficiency, and expand coverage of electricity service. More specifically, the
program will support achievement of the objectives in the country strategy by
promoting: (i) energy diversification through greater delivery of energy from
renewable sources; (ii) energy efficiency in the transmission stage, contributing to
improving the reliability of service; and (iii) reduction of electricity losses.29
The
program is also aligned with the priority areas of the Bank’s Infrastructure Strategy:
Sustainable Infrastructure for Competitiveness and Inclusive Growth (document
GN-2710-5), in that it will: (i) promote access to infrastructure services through the
financing of works in the SNT that will ensure the interconnection of power from
strategic projects (paragraph 1.3); and (ii) improve quality of life by providing a
robust power system that, over the medium term, will see LPG replaced by
electricity for residential customers.
1.19 The IDB is currently supporting the Ecuadorian power sector through the following
operations: Support for the Transmission Program (loan 2457/OC-EC),
Modernization of Pumping Stations on the Emerald-Quito Multiproduct Pipeline
(loan 2472/OC-EC), and the Electrification Program for Rural and Marginal Urban
27
Rationale for the program under the Public Utilities Policy, document GN-2716-4, DOCNUM=38567771.
28 Private participation is allowed when public enterprises do not have the capacity to meet demand or when
necessary and appropriate for serving the public, community, or general interest. In this case, CONELEC
Regulation 002/11 requires power generation with nonconventional renewable energies. 29
Electricity losses are currently running at 12.7%. They are expected to fall to 7.5% by 2022 (PME 2013-
2022).
- 8 -
Areas (loan 2608/OC-EC), which now have disbursement levels30
of 91%, 98%,
and 98%, respectively. In addition, at the end of 2013, the second stage of the
Electrification Program for Rural and Marginal Urban Areas (loan 3087/OC-EC)
was approved. Overall, these operations, pursued in the context of the strategic
programs for the sector—Electrification Plan for Rural and Marginal Urban Areas
(FERUM), Plan for Reducing Electricity Losses (PlanRep) and Plan for Improving
the Distribution Network (PMD)—have contributed to: (i) expanding the
distribution network to provide greater electricity coverage (95.4%); (ii) reducing
total electricity losses by approximately 25% on average nationwide, to 12.74%
over the last five years; and (iii) improving the system’s technical service quality
indices (AIFI from 17.88 to 14.11 and AIDI from 19.55 to 15.1131
) over the last
two years. The sound execution performance of IDB-supported operations in the
sector has provided some lessons that could be considered good practices, such as:
(i) preparing projects and their execution instruments in close collaboration with the
executing agencies, from the design stage onward; (ii) selecting projects for
financing that are prioritized in sector policy documents; (iii) continuous technical
and management strengthening of executing agencies as part of government
objectives; and (iv) continuous interaction between the IDB team and the project
management units, to facilitate understanding of the IDB’s procurement and
monitoring procedures.
1.20 The Bank is also supporting the sector in initiatives relating to energy
diversification, through the use of nonconventional renewable energies,
energy efficiency, regional power integration, reduction of electricity losses in
distribution, operation of “smart networks,” and sustainable electrification
in isolated rural areas, through a number of technical cooperation
projects: ATN/MC-11398-EC, GRT/FM-1384-EC, ATN/OC-13089-EC,
ATN/ME-13933-EC, ATN/OC-13350-RG,32
and ATN/KK-14170-EC.33
1.21 Consistency with the Ninth General Capital Increase (GCI-9). This operation is
aligned with the priorities for the lending program established in the GCI-9
(document AB-2764): (i) lending to small and vulnerable countries; (ii) lending to
support climate change initiatives, renewable energy and environmental
sustainability; and (iii) lending to support regional cooperation and integration by
strengthening the transmission system with Colombia, improving the reliability of
the transmission system as a transition to System 500, and supporting the design of
the EHV power interconnection with Peru. The expected outcomes of the program
will contribute to the following outputs in the GCI-9 results framework:
(i) kilometers of new transmission lines installed or upgraded; (ii) number of cross-
30
Disbursement status as of December 2013. 31
AIFI: Average Interruption Frequency Index (per nominal installed kVA); AIDI: Average Interruption
Duration Index (per nominal installed kVA). 32
Support for Andean Electrical Interconnection Studies. 33
Analysis and recommendations for the successful implementation of the Smart Grid Program in Ecuador.
Pending IDB approval.
- 9 -
border or transnational projects supported; and (iii) contribution to regional
development goals relating to stabilization of CO2 emissions through adequate
transfer and dispatch of energy from renewable sources.
B. Objectives, components, and costs
1.22 The general objective of the program is to help improve the operating conditions of
the SNT and ensure the supply of high-quality energy to consumption centers,
nationally and regionally. The specific objectives are: (i) to strengthen the 230 kV
and 138 kV systems of the SNT; (ii) to increase the reliability ratings of the SNT;
and (iii) to contribute to regional EHV energy integration, as part of the CEA. The
program includes two components:
1.23 Component I. Expansion and strengthening to improve transmission capacity
and quality of the SNT (US$162 million). This component accounts for 96.6% of
program resources, and includes preinvestment studies and the construction of four
new transmission systems, as well as the expansion of two existing systems:
(i) Santo Domingo-Esmeraldas transmission system, with 163 km of transmission
lines (230-kV), and substations of 230/138 kV; (ii) Tabacundo transmission system
with 25 km of transmission lines (230-kV and 138-kV) and 230/138-kV and
230/69-kV substations; (iii) Durán transmission system with 10 km of transmission
lines (230-kV) and a 230/69-kV substation; (iv) Concordia-Pedernales transmission
system with 95 km of transmission lines (230-kV) and two substations of
138/69 kV; (v) transmission system for the expansion of substations: 138/69 kV
and the increase of capacitive power by 30-MVAR; and (vi) transmission system
for improving the Esclusas substations with capacitors of 2x60 MVAR. These
works are part of the PET in the Northern, Tabacundo, and Riombamba; the
Southern zone, Yanacocha; the Southwestern zone, Durán, as well as the
interconnection of the Santo Domingo-Esmeraldas and Pedernales-La Concordia
segment. These works will boost hydroelectric generation in the provinces of Santo
Domingo, Esmeraldas, and Guayas while reducing generation needs at the
Esmeraldas and Trinitaria thermal power plants, meeting the growing needs of the
southern and northern regional PDUs, strengthening the interconnection with
Colombia through the Tabacundo substation, relieving congestion on the Milagro-
Dos Cerritos-Pascuales 230-kV power corridor, and improving the voltage profiles
and power supply capacity of the SNT bus bars in the province of Manabí.
1.24 Component II. Final design for development of the EHV Electrical
Interconnection Infrastructure with Peru (US$5.6 million). With reference to
the electrical integration infrastructure planning study34
financed under the SINEA,
entry into service of a 500 kV transmission line between Ecuador and Peru will
produce a significant “coupling” of marginal costs in the two countries. The study
shows that the benefits derived from the time this line enters into service will
average US$94.0 million annually over the period 2017-2020, US$165.0 million
34
Study financed through technical cooperation project RG-T2056. Planning Report. AF-Mercados, SIGLA,
August 2013.
- 10 -
annually between 2021, and 2025, and up to US$172.0 million annually from 2026
to 2030. The total approximate cost of this interconnection would be
US$210 million, and with a rate of return of 12% and 30 years of useful life, its
annual cost would be around US$26 million. Comparing this value with the total
savings to be obtained, the interconnection clearly makes economic sense. On the
basis of these results, 3.3% of program resources will be used in this component to
finance final designs and development of environmental specifications for the EHV
system, including:35
geographic location of the project, topography, soil mechanics,
layout of roads and existing infrastructure, design criteria, configuration of the
proposed system, costs, climate, access areas, applicable standards and regulations,
equipment specifications, works, time schedule, and telecommunication and control
systems.
1.25 Cost and financing. The estimated cost of the program is US$169.5 million, of
which US$150 million will be financed by the IDB and US$19.5 million
recognized as the local counterpart contribution (see Table 1).
Table 1. Program costs (US$ thousands)
COMPONENTS FINANCING
TOTAL IDB COUNTERPART
*
Component I. Expansion and strengthening to improve
transmission capacity and quality of the SNT 145,000 17,400 162,400
Santo Domingo-Esmeraldas transmission system 58,035 6,964 64,999
Tabacundo transmission system 29,286 3,514 32,800
Durán transmission system 12,388 1,486 13,874
Concordia-Pedernales 138/69 kV, 66 MVA transmission system 25,782 3,094 28,876
Expansion projects 19,509 2,342 21,851
Component II. Final design for development of the EHV
electrical interconnection infrastructure with Peru 5,000 600 5,600
Program administration 0.0 1,500 1,500
Program monitoring and supervision 0.0 150 150
Program management unit (PMU) 0.0 600 600
Midterm and final program evaluations 0.0 100 100
External audits 0.0 150 150
Contingencies 0.0 500 500
TOTAL 150,000 19,500 169,500 * Amount to be contributed by CELEC EP
C. Results Matrix
1.26 The program has a results matrix showing outcome indicators and targets
associated with its objectives and components. The indicators selected for the
35
The specific scope will be defined in the terms of reference for the final designs to be prepared.
- 11 -
overall outcomes are: (i) reserve transmission capacity (MVA) for meeting demand
in the SNI; (ii) average maximum loadability in transmission lines and substations;
and (iii) incremental demand met from new installations associated with the
program (MWh per month). In addition, the thermal generation displaced will be
measured as will the reduction in electricity losses. The results and targets have
been formulated and projected for five years (2014-2019) (see Annex II, Results
Matrix).36
II. FINANCING STRUCTURE AND MAIN RISKS
A. Financing instruments
2.1 The program will be financed as a specific investment loan. The funds will be
disbursed over a period of five years, starting on the loan contract’s effective date:
Table 2. Disbursement schedule (US$ millions)
Source Year 1 Year 2 Year3 Year 4 Year 5 Total
IDB 10.8 43.2 39.7 29.5 26.8 150
Counterpart 1.38 5.52 5.0 3.8 3.8 19.5
Cumulative 12.3 48.7 44.7 33.3 30.5 169.5
2.2 Economic and financial analysis. The economic evaluation of component I
identified the type of impact on electricity service of the various works included in
the component, grouping them into 10 projects. The economic rate of return was
calculated for each of the proposed projects. Starting with a technical analysis of
demand, load flow, and simulations of load dispatch in the national grid, projections
were obtained as needed to estimate the annual costs and benefits associated with
each project over the period 2014-2023. The results for recent years were
extrapolated over the remaining useful life of the assets, estimated at 40 years. The
economic return was evaluated at market prices and at efficiency prices, using
shadow price relationships. The economic evaluation of the program at efficiency
prices indicates an economic internal rate of return (EIRR) of 28.1% and a net
present value (NPV) of net benefits to the country, discounted at 12%, of
US$194.1 million. The sensitivity analysis shows that, under adverse changes on
the order of 15% in the main parameters used in the evaluation, the program’s
EIRR is still above 12%. The evaluation of the program’s financial impact took into
account additional revenues from transporting greater amounts of electricity and
replacing thermal generation, resulting in an IRR of 15.3% and an NPV of
US$29.9 million. The analysis for component II yields an NPV of US$428 million,
a cost recovery period of three years, and an IRR of 34%.
36
The indicators, their baselines, and target values have been analyzed and agreed with CELEC EP. These
indicators will be used for monitoring and evaluation of the program, with the support of Transelectric.
- 12 -
B. Environmental and social safeguard risks and associated mitigation
measures
2.3 The program will have positive impacts by improving the reliability and quality of
the country’s electricity supply, reducing losses, and transferring the greater volume
of energy generated. Any potential adverse social and environmental impact would
arise primarily during the construction phase37
for the new substations and
transmission lines, and to a lesser extent during operation.38
There is not expected
to be any involuntary resettlement or economic displacement of people. The
impacts will be moderate and easy to handle through standard procedures.39
Consistent with the Bank’s Environment and Safeguards Compliance Policy
(Operational Policy OP-703), the program was classified as a category “B”
operation. Because of its characteristics, the program is also subject to Operational
Policies OP-704 scenario I and OP-765,40
and these have been considered in the
Environmental and Social Management Plan (ESMP).
2.4 With respect to the social and environmental risks, in addition to observing the
operating conditions established for this purpose, the executing agency will present
to the Bank’s satisfaction, before beginning construction on any of the works:
(i) the Environmental Impact Assessment and the ESMP, together with the budget
for their execution; (ii) the corresponding environmental license; (iii) the resolution
reserving rights-of-way for the new transmission lines; (iv) evidence of legal
ownership of the land where the substations are to be located; (v) inclusion of the
required environmental technical specifications and the ESMP in the contracts for
construction and supervision of the planned works; and (vi) evidence that at least
one public consultation has been held for each project, including: (a) project
description; (b) description of probable impacts; (c) description of measures for
mitigating the identified impacts (ESMP); (d) description of the system for
receiving and processing complaints and claims; and (e) arrangements for receiving
suggestions concerning the proposed project or its ESMP. The Bank will supervise
the environmental and social aspects of the works financed on a semiannual basis,
including visits at the beginning of the works and upon their acceptance.
37
These include: (i) the impact on air quality through the uncontrolled emission of particulate matter into the
atmosphere as a result of construction work on the transmission lines and substations; (ii) noise generated in
the vicinity of works through the operation of construction machinery and equipment and the installation of
towers, in particular; (iii) generation of liquid, solid, and gaseous wastes; and (iv) increased risk of accidents
due to the presence of machinery, faulty disposal of debris or materials, or lack of work signage. 38
These include: (i) changes in land use along the route of the transmission lines and at substation sites;
(ii) depreciated economic value of adjacent properties due to restricted use for other activities; (iii) non-
ionizing radiation emissions in the direct zones of influence of the power transmission networks; and
(iv) generation of common and hazardous wastes through maintenance work, especially on the
transformers. 39
The Environmental and Social Management Report (IDBDOCS 38228050) presents an analysis of the main
potential impacts, as well as the measures for mitigating them. 40
Operational Policy OP-704, Disaster Risk Management Policy; Operational Policy OP-765, Indigenous
Peoples Policy.
- 13 -
C. Fiduciary risk
2.5 The evaluation of the fiduciary capacity of CELEC EP and its Transelectric
business unit showed that the executing agency has sufficient capacity to carry out
the planning, financial management, and procurement activities for the program. No
significant fiduciary risks were identified.
D. Execution risks
2.6 Program management risks. Risks identified relate to events that could cause
delays during execution: (i) timely transfer of program funds from the Ministry of
Finance (MF) to the executing agency; (ii) changes in the PMU and its full-time
dedication to the program; and (iii) the capacity to prepare bidding processes for
complex works. To mitigate these risks, as a condition precedent to the first
disbursement, a suitable mechanism will be agreed for transferring program funds
from the MF to the executing agency’s consolidated account and for ensuring that
those funds are used in accordance with the terms and purposes established in the
loan contract. Furthermore, in setting up the PMU, the executing agency will
confirm full-time dedication of the team assigned to program execution and the
profile of the team will be agreed upon in order to mitigate risks in the preparation
of complex bidding processes.
2.7 Procurement risks. The potential risks lie in the capacity of executing agency
personnel to follow IDB procurement policies properly. Although good
procurement practices were evident during implementation of loan 2457/OC-EC,
potential personnel turnover within the organization may pose the need for further
training. To mitigate this risk, every effort will be made to retain the PMU
personnel who have been successfully executing loan 2457/OC-EC, or to select
new personnel in accordance with the profile of each position, as well as to provide
ongoing training to the PMU on Bank procurement policies.
2.8 Political risk. This risk relates to the possibility of changes in the decision to
pursue regional electrical integration. The integration initiative is spelled out in the
PME, which places special emphasis on the electrical interconnection with Peru.
This risk is not expected to affect component II of the program. Moreover, the
inclusion of support for designing the EHV interconnection infrastructure with Peru
will facilitate monitoring of the bilateral negotiations and the final agreements for
the future construction of the EHV line with Peru.
E. Other special considerations and risks
2.9 Technical and economic viability.41
The technical viability of these projects is
ensured by the preparation of designs and the construction approval process. The
designs of program projects are prepared in accordance with current technical,
regulatory, social, and environmental specifications in the sector. This process will
help to mitigate risks associated with social objections in the areas of influence of
41
Technical, economic, and financial evaluation, DOCNUM=38270587.
- 14 -
the projects to be financed. Development of these projects is an integral part of the
PET, and their priority is described in the PME. During project selection, a rigorous
analysis of their economic viability was performed to determine their sustainability,
along with a sensitivity analysis of the results to changes in investment costs,
operating and maintenance costs, the cost of electric power, the average rate to the
end consumer, the price-elasticity of demand, the benefits arising from greater
reliability, savings in terms of electricity losses, and savings in generation costs;
that analysis demonstrated the robustness of the estimated economic and financial
viability of the program.
2.10 CELEC EP has already requested the budgetary item for executing the PET, which
includes this program. Asset replacement and operations and maintenance will be
financed through power rates approved by CONELEC for regulated transmission
services, and this will ensure the program’s sustainability. The expected economic
and financial benefits from the projects relate primarily to: (i) the reduction in
thermal generation using high-cost liquid fuels; (ii) the reduction in technical losses
in the national grid; (iii) the satisfaction of demand that is unmet or anticipated
through natural growth; and (iv) improvements in the quality and reliability of the
power supply.
III. SUMMARY OF IMPLEMENTATION MEASURES
A. Execution arrangements and period
3.1 The program’s planned execution period is five years. The executing agency is
CELEC EP, through the Transelectric business unit. Execution of the following
activities will be part of the special contractual conditions precedent to the first
disbursement:42
(i) signing and entry into effect of a subsidiary agreement
between the Finance Ministry and the executing agency establishing the
obligation to use the funds in accordance with the terms and purposes agreed
in the loan contract; (ii) the executing agency’s establishment of the PMU,
devoted to the program’s execution and comprising a general coordinator, a
procurement specialist, a financial specialist, an environmental specialist, an
electrical engineer, and a computer engineer, as agreed with the IDB; and
(iii) establishment by the executing agency of a short list for hiring an external
firm to audit the program’s financial statements and preparation of the
corresponding terms of reference, approved by the IDB.
3.2 Procurement plan. The IDB team and the executing agency have agreed on a
procurement plan for the first 12 months of execution. The executing agency will
update the plan annually with the planned annual monitoring reports and before the
42
The Program will be executed on the basis of the documents included in the Initial Report according to the
General Conditions 4.01(d) of the loan contract. The program management unit (PMU) will review and
update these documents in accordance with the General Conditions and submit them to the IDB for its no
objection.
- 15 -
end of each calendar year or whenever there are substantial changes covering the
remaining months of the program execution period.
3.3 Retroactive financing and recognition of expenditures. The Bank may provide
retroactive financing, charged to the loan proceeds, and recognize expenditures,
charged to the local contribution, up to an amount equivalent to 20% of the loan or
the local contribution, respectively, for eligible expenditures incurred prior to the
loan approval date related to preinvestment studies for the program, provided that
such expenditures meet requirements substantially similar to those established in
the loan contract.43
3.4 Disbursements and advances of funds. The loan will be disbursed in the form of
advances of funds in accordance with the program’s estimated liquidity needs based
on the annual work plan and the procurement plan. Cash needs will be programmed
with a moving 12-month horizon, and advances will cover the needs of five months
of execution.
3.5 Audits. External audit services for the program will be provided by a firm of
external auditors acceptable to the IDB, which will be contracted on the basis of
terms of reference agreed with the executing agency. The cost of external audits
will be covered by the local counterpart resources.
3.6 Project Operating Manual. The program’s procedures have been clearly spelled
out in the Project Operating Manual for loan 2457/OC-EC. They include a full
system for monitoring and evaluating actions and outcomes, both for the CELEC
EP itself and for the external auditors. Presentation of an updated version of the
manual, duly approved by CELEC EP, and its entry into effect with the IDB’s
no objection, will be a special contractual condition precedent to the first
disbursement.
3.7 Special execution conditions. Before starting the works under component I, the
executing agency will present, to the Bank’s satisfaction, evidence that it has the
permits and licenses required by Ecuadorian law for construction of the projects
under the program, and that it is in compliance with the environmental conditions
described above (paragraph 2.4).
B. Summary of arrangements for results monitoring and evaluation
3.8 Monitoring arrangements. The IDB will conduct semiannual technical visits to
the executing agency to review progress under the program and to make any
adjustments needed in its execution. Fiduciary oversight visits will be take place
once a year. External audits of program accounts and operations are planned to
validate the use of the loan proceeds and the internal operating processes and
controls followed within the executing agency.
43
Such expenditures must have been incurred beginning 7 March 2014.
- 16 -
3.9 Program evaluation arrangements. Evaluation of the program is reflected in the
Monitoring and Evaluation Plan44
and will include a midterm and a final
evaluation, financed with the counterpart funds. The midterm evaluation will be
contracted by the executing agency within two months after 50% of the IDB loan
proceeds have been committed. The final evaluation will be contracted by the
executing agency within two months after 95% of the Bank’s loan proceeds have
been disbursed.45
The semiannual and annual progress reports will be submitted by
the executing agency as described in the Program Monitoring and Evaluation
document. The IDB team will conduct semiannual visits to the works sites and will
maintain ongoing collaboration through the Energy Division (INE/INE) and the
Country Office in Ecuador (CAN/CEC).
44
Monitoring and Evaluation Plan (M&E), DOCNUM=38270583. 45
As part of the final evaluation of the program, and in order to assess its impacts, an ex post cost-benefit
evaluation will be performed to verify the assumptions and determine the impacts of the operation.
Annex I - EC-L1117
Page 1 of 1
1. IDB Strategic Development Objectives
Lending Program
Regional Development Goals
Bank Output Contribution (as defined in Results Framework of IDB-9)
2. Country Strategy Development Objectives
Country Strategy Results Matrix GN-2680
Country Program Results Matrix GN-2756
Relevance of this project to country development challenges (If not aligned to country
strategy or country program)
II. Development Outcomes - Evaluability Evaluable Weight Maximum Score
8.8 10
3. Evidence-based Assessment & Solution 10.0 33.33% 10
3.1 Program Diagnosis 3.0
3.2 Proposed Interventions or Solutions 4.0
3.3 Results Matrix Quality 3.0
4. Ex ante Economic Analysis 10.0 33.33% 10
4.1 The program has an ERR/NPV, a Cost-Effectiveness Analysis or a General Economic
Analysis4.0
4.2 Identified and Quantified Benefits 1.5
4.3 Identified and Quantified Costs 1.5
4.4 Reasonable Assumptions 1.5
4.5 Sensitivity Analysis 1.5
5. Monitoring and Evaluation 6.4 33.33% 10
5.1 Monitoring Mechanisms 2.5
5.2 Evaluation Plan 3.9
Overall risks rate = magnitude of risks*likelihood
Identified risks have been rated for magnitude and likelihood
Mitigation measures have been identified for major risks
Mitigation measures have indicators for tracking their implementation
Environmental & social risk classification
The project relies on the use of country systems
Fiduciary (VPC/PDP Criteria) Yes
Non-Fiduciary
The IDB’s involvement promotes improvements of the intended beneficiaries and/or public
sector entity in the following dimensions:
Gender Equality
Labor
Environment
Additional (to project preparation) technical assistance was provided to the public sector
entity prior to approval to increase the likelihood of success of the projectYes
The ex-post impact evaluation of the project will produce evidence to close knowledge gaps in
the sector that were identified in the project document and/or in the evaluation plan
Financial Managemente: i) Budget; ii) Treasury; iii) External
control.
Procurement: i) Information System
The Ecuadorian Electrification Master Plan is based on the need to ensure satisfaction of the projected energy demand considering the energy reserves and the need for cost optimization. In order
to achieve this goal, it is critical to have a reliable system with quality and safety in the generation, transmission and distribution services. The POD explains in detail the structure of the system
including a description of the National Transmission System and the challenges and progress in its operational management. The challenges ahead are also presented in a context in which the
demand has outgrown planned supply requiring not only greater generation capacity but also a more robust, reliable transmission system with higher capacity.
The proposed project is clearly articulated with this detailed analysis of the energy situation, and proposes funding for two components: (i) Expansion and strengthening to improve the capacity and
transmission quality of the National Transmission System (96% of resources) and (ii) Final designs for the development of the Infrastructure for Electrical High Voltage Interconnection with Peru.
As a result of this diagnosis, the intervention that is proposed has a clear vertical logic and its final impacts are associated with the project's contribution to mitigating climate change and improving
the efficiency of the transmission system as a whole. These impacts will be achieved by increasing the reserve capacity of the system in the transmission lines and substations to be funded, the level
of "chargeability" in transmission lines and the incremental demand to be satisfied with the additional Power Substations.
The distributed package contains a full economic analysis which in the base case scenario results in a 28.1% Economic Internal Rate of Return and US$194.1 million in Net Present Value. Simulations
show that, under unfavorable variations of the order of 15% in the main parameters involved in the assessment, the Internal Rate of Return is always above 12%
The Monitoring and Evaluation Plan proposes a reflexive socioeconomic analysis and an ex post Cost Benefit evaluation.
The Government of Ecuador received technical assistance to
improve its capacitites to design and evaluate photovoltaic
systems (EC-T1235). In addition, a TC (EC-T1280) is expected to
support the current operation.
Low
Yes
III. Risks & Mitigation Monitoring Matrix
IV. IDB´s Role - Additionality
Yes
Yes
B
(i) Km of electricity transmission and distribution lines installed or upgraded (ii) Number of cross
border and transnational projects supported.
Aligned
Create a long-term energy strategy that promotes a sustainable
energy framework, facilitates adequate energy supply, and
improves access to electric power.
The operation is included in the 2014 Country Program
Document.
Development Effectiveness Matrix
Summary
Aligned
(i) Lending to small and vulnerable countries; (ii) Lending to support climate change initiatives,
renewable energy and environmental sustainability and (iii) Lending to support regional
cooperation and integration.
I. Strategic Alignment
Annex II
Page 1 of 4
RESULTS FRAMEWORK
MATRIX OF INDICATORS
Output indicator Baseline
(2013) Year 1 Year 2 Year 3 Year 4 Year 5
Final
target Means of verification
Component I – Expansion and strengthening to improve the transmission capacity and quality of the SNT
1.1 Santo Domingo-Esmeraldas
transmission system completed
(US$000)
0.0 5,850 23,399 12,998 12,998 9,705 64,993 Project progress report
1.1.1 163 km of 230 kV
transmission lines completed
(US$000)
0.0 4,298 17,190 9,550 9,550 7,162 47,750 Project progress report
1.1.2 Expansion Esmeraldas
230/138 kV substation completed
(US$000)
0.0 1,328 5,313 2,951 2,951 2,213 14,756 Project progress report
1.1.3 Modernization 138 and 69 kV
substation completed (US$000) 0.0 224 896 497 497 373 2,487 Project progress report
1.2 Tabacundo transmission
system completed (US$000) 0.0 2,951 11,807 6,559 6,559 4,919 32,795 Project progress report
1.2.1 25 km of 230 and 138 kV
transmission lines completed
(US$000)
0.0 1,122 4,489 2,494 2,494 1,870 12,470 Project progress report
1.2.2 Construction 230/138 kV
substation completed (US$000) 0.0 1,829 7,318 4,065 4,065 3,049 20,328 Project progress report
1.3 Durán transmission system
completed (US$000) 0.0 1,249 4,994 2,774 2,774 2,080 13,874 Project progress report
1.3.1 10 km of 230 kV transmission
lines completed (US$000) 0.0 263 1,052 584 584 438 2,921 Project progress report
Objectives
To help improve the operating conditions of the National Transmission System (SNT) and ensure the supply of high-quality energy to
consumption centers, nationally and regionally. The specific objectives are: (i) to reinforce the 230 kV and 138 kV systems of the
SNT; (ii) to increase the reliability of the SNT; and (iii) to contribute to regional Extra High Voltage energy integration, as part of the
Andean Electric Corridor.
Annex II
Page 2 of 4
Output indicator Baseline
(2013) Year 1 Year 2 Year 3 Year 4 Year 5
Final
target Means of verification
1.3.2 Construction 230/69 kV
substation completed (US$000) 0.0 986 3,942 2,190 2,190 1,642 10,950 Project progress report
1.4 La Concordia-Pedernales
transmission system completed
(US$000)
0.0 0.0 0.0 12,512 5,775 10,585 28,875 Project progress report
1.4.1 95 km of 138 kV transmission
lines completed (US$000) 0.0 0.0 0.0 8,022 3,702 6,787 18,511 Project progress report
1.4.2 Construction 138/69 kV
substation completed (US$000) 0.0 0.0 0.0 2,860 1,320 2,420 6,600 Project progress report
1.4.3 138 kV substation sectioning
completed (US$000) 0.0 0.0 0.0 1,629 752 1,378 3,759 Project progress report
1.5 Expansion transmission
system completed (US$000) 0.0 1,726 6,902 5,409 4,960 2,840 21,837 Project progress report
1.5.1-Expansion of Yanacocha
138/69 kV substation completed
(US$000)
0.0 390 1,561 1,064 1,064 354 4,435 Project progress report
1.5.2 Expansion of Riobamba
230/69 kV substation completed
(US$000)
0.0 377 1,506 837 837 627 4,184 Project progress report
1.5.3 San Gregorio 30 MVAR
substation capacitors completed
(US$000)
0.0 82 329 224 224 74 933 Project progress report
1.5.4 Expansion of San Gregorio
230/69 kV substation completed
(US$000)
0.0 527 2,108 1,437 1,437 479 5,988 Project progress report
1.5.5 Expansion of El Inga
230/138 kV substation completed
(US$000)
0.0 350 1,398 777 777 582 3,884 Project progress report
1.5.6 Quality improvement
Esclusas substation, 2x60 MVAR,
completed (US$000)
0.0 0.0 0.0 1,070 621 724 2,415 Project progress report
Annex II
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Output indicator Baseline
(2013) Year 1 Year 2 Year 3 Year 4 Year 5
Final
target Means of verification
Component 2 – Final design studies for the EHV Electrical Interconnection with Peru
Infrastructure design for the
500 kV interconnection line with
Peru, completed (US$000)
0.0 200 800 1,000 1,000 0.0 3,000 Project progress report
Environmental and social studies
of the 500 kV interconnection line
with Peru completed (US$000).
0.0 100 400 500 1,000 0.0 2,000 Project progress report
1 Load capacity of the transmission lines and substations.
Outcome indicators Baseline
(2013) Year 6 Means of verification Observations
Component I – Expansion and strengthening to improve the transmission capacity and quality of the SNT
Increased reserve capacity in the transmission
lines of projects financed in order to meet
power demand in the areas of influence (MVA)
0.0 970 Final project evaluation Baseline and target validated by TRANSELECTRIC
(100% of thermal limit)
Average maximum loadability level1 in the
transmission lines financed (MVA) 0.0 ≤ 775.96 Final project evaluation
Final target in light of current CONELEC regulations
(80% of thermal limit)
Increased reserve capacity in the substations of
projects financed in order to meet power
demand in the areas of influence (MVA)
400 1,936.70 Final project evaluation Baseline and target validated by TRANSELECTRIC
(90% of installed capacity)
Incremental demand satisfied through the
substations financed (MW) 0.0 395 Final project evaluation Baseline and target validated by TRANSELECTRIC
Component 2 – Final design studies for the EHV Electrical Interconnection with Peru
Government decision to finance construction of
the 500-kV line for the EHV interconnection
with Peru (official notice published).
0.0 1 Government notice
CELEC EP through its business unit
TRANSELECTRIC will be responsible for building
the 500-kV line with Peru.
Annex II
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2 Evaluates the cost of not supplying incremental demand at cost of ENS= US$1,533/MWh.
3 Based on the impact of the 230 kV Santo Domingo-Esmeraldas transmission system.
Impact indicators Baseline
(2013)
Final target
Year 5 Means of verification
Climate change mitigation
Reduced thermal generation (MW) 0.0 130 Final project evaluation
CO2 avoided through the program (Tons of CO2 eq./year) 0.0 Tbc
Transmission efficiency
Savings from improved capacity and quality of electricity transmission in the
SNT2 (US$/day)
0.0 26,145 Final project evaluation
Average level of electricity losses in the SNT (%) 3.32 2.343
Annex III
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FIDUCIARY AGREEMENTS AND REQUIREMENTS
Project number: EC-L1117
Name: National Transmission System Strengthening Program
Executing agency: Corporación Eléctrica del Ecuador (CELEC EP)
Prepared by: Patricio Crausaz and Gumersindo Velásquez (FMP/CEC)
I. EXECUTIVE SUMMARY
1.1 The executing agency for this program will be the public enterprise CELEC EP,
through its business unit Transelectric. CELEC EP will be responsible for the
tendering, contracting, and technical and fiduciary management of the goods,
works, and nonconsulting services, as well as the consulting services to be
financed by the loan. The executing agency has the capacity and the means to
carry out its responsibilities under the program, and the overall fiduciary risk is
assessed as low. The proposed supervision plan is consistent with that assessment.
II. FIDUCIARY CONTEXT OF THE COUNTRY
2.1 The National Public Procurement System (SNCP) was created by law in August
2008, and applies to all entities of the public sector, including public enterprises.
Article 34 of the Organic Law on Public Enterprises (LOEP) provides that all
contracting by public enterprises for the procurement of works, goods, and
services, including consulting services, will be subject to the National
Development Plan, with due regard to the national and corporate budgets, and
must be substantiated in a strategic plan and an annual procurement plan.
2.2 The National Public Finance System (SINFIP), under the stewardship of the
Ministry of Finance (MF), contains all the standards, policies, instruments,
processes, activities, records, and operations that Ecuador’s public sector entities
and agencies and the public financial system are to use in programming and
managing public revenues, expenditures, and financing. The LOEP (general
provision 5) provides that public enterprises are not required to keep their
accounts in accordance with the government’s accounting standards, nor are they
obliged to manage their financial resources through the Single Treasury Account
or through e-SIGEF. Public enterprises may apply generally accepted accounting
principles and international accounting standards for producing all the financial
information needed to measure their management performance, both
administrative and financial. Public enterprises are required to report their
Annex III
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financial management outcomes to the MF in the formats determined by the
Ministry.
III. FIDUCIARY CONTEXT OF THE EXECUTING AGENCY
3.1 The new program will be executed by CELEC EP, through its business unit
Transelectric. CELEC EP will be responsible for all aspects of the project cycle
and for management of the IDB loan proceeds and the local contribution, and will
periodically report the results of the program to the MF and the Bank. The
executing agency’s fiduciary capacity has been evaluated as satisfactory, and it
has the human and technical resources and the information systems needed to
execute the program properly and to manage its finances and procurement.
3.2 The executing agency will rely on the same Program Management Unit (PMU)
that is currently managing program EC-L1070, Support for the Transmission
Program, financed under loan 2457/OC-EC. This PMU will consist of a general
coordinator, a financial specialist, a procurement specialist, an environmental
specialist, an electrical engineer, and a computer engineer, who will be dedicated
full-time to these activities. The executing agency will maintain this structure in
order to ensure efficient execution of the new program.
3.3 The PMU will rely on the relevant offices of CELEC EP to carry out its tasks.
Transelectric has a document, “Organizational Structure and Functions,” which
systematizes the principal activities that the various offices must perform and
focuses staff efforts on fulfilling the mission and vision established by the
strategic plan 2013-2017, which covers the projects to be financed by this
operation.
IV. FIDUCIARY RISK EVALUATION AND MITIGATING MEASURES
4.1 On the basis of available information regarding the executing agency’s experience
with management of project 2457/OC-EC financed by the IDB, as well as the
institutional capacity assessment of the Transelectric business unit of CELEC EP,
the fiduciary risk, in both its financial and procurement aspects, was deemed to be
low. No fiduciary risks were identified that would merit specific mitigation
measures. However, it is recommended that CELEC EP maintain and strengthen
the Management Unit devoted exclusively to execution of the program.
V. CONSIDERATIONS FOR THE SPECIAL CONDITIONS OF THE CONTRACT
5.1 Present evidence of the approval and entry into force of the updated Program
Operating Manual for project 2457/OC-EC, adapted to the new program.
5.2 Confirmation that the PMU will be devoted full-time to the program and will
comprise a general coordinator, a procurement specialist, a financial specialist, an
environmental specialist, an electrical engineer, and a computer engineer.
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5.3 Agreement between the executing agency and the Bank on the firms eligible to
conduct the program audit and the content of the corresponding terms of
reference.
VI. AGREEMENTS AND REQUIREMENTS FOR PROCUREMENT EXECUTION
A. Procurement execution
6.1 The initial procurement plan agreed between the executing agency and the Bank
will establish the procurement operations initially included in the program, which
will be carried out in accordance with the tendering methods and thresholds
established therein.
6.2 The program calls for the procurement of works, goods, and nonconsulting, as
well as consulting services under the framework established in documents
GN-2349-9 and GN-2350-9, respectively. Use of the Procurement Plan Execution
System (SEPA) is recommended for planning and monitoring program
procurement.
Procurement of works, goods, and nonconsulting services
6.3 The threshold for the use of international competitive bidding1 (ICB) will be made
available to CELEC EP at the website http://www.iadb.org/procurement. Below
this threshold, the selection method will be determined on the basis of the
complexity and characteristics of the procurement, which will be reflected in the
procurement plan approved by the Bank.
6.4 Contracts for goods, works, and nonconsulting services arising under the program
and subject to ICB will be executed using the standard bidding documents (SBDs)
issued by the Bank. Requests for proposals subject to national competitive
bidding (NCB) and shopping (S) will be executed using national bidding and
shopping documents agreed upon with the Bank.
6.5 In addition, in ICB processes, reducing to four weeks the period established by
the policies for the submission of bids for works, goods, and nonconsulting
services applicable in the case of noncomplex procurement will be accepted, and
the period established by local regulations will be accepted for NCB.
Contracting of consulting services
6.6 Any of the methods described in the policy on consultants may be used for the
selection and contracting of consulting services (document GN-2350-9), provided
that the method has been identified for the respective procurement in the
procurement plan approved by the Bank. The threshold for preparation of a short
1 Currently the ICB threshold is for amounts of US$3 million or more for works; and US$250,000 or more
for goods and nonconsulting services.
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list of international consultants2 will be made available to the program at
www.iadb.org/procurement.
6.7 Consulting services contracts under the program will be executed using the
request for proposals issued by the Bank. For consulting services with an
estimated budget of up to US$200,000, the executing agency will promote the use
of the selection method based on the consultants’ qualifications, as provided in
paragraph 3.7 of the policies.
B. Table of threshold amounts (US$)
Works Goods Consulting services
ICB NCB Shopping ICB NCB Shopping International
publicity
Shortlist
100%
national
≥ 3,000,000 < 3,000,000
≥ 250,000 < 250,000 ≥ 250,000
< 250,000
≥ 50,000 < 50,000 > 200,000 < 200,000
6.8 For contracting of simple works and off-the-shelf goods, the shopping method
may be used up to the ICB thresholds. The executing agency must justify the use
of this procedure and submit it for approval in the procurement plan.
2 When contracting consulting firms, the threshold is for amounts of US$200,000 or more; for lesser
amounts, the short list may comprise entirely national consulting firms.
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C. Main procurement items
Activity Type of
bidding Estimated date
Estimated
amount
(US$000)
Works
Santo Domingo – Esmeraldas 230-kV transmission line,
double circuit, 1200 ACAR, 163-km. ICB January 2015 42,636
Esmeraldas 230/138 kV, 167 MVA substation; modernization
138 & 69 kV. ICB January 2015 13,177
Expansion Santo Domingo 230 kV substation, expansion of
2 line bays NCB January 2015 2,223
230 & 138 kV transmission line segments, 25 km, connection
Tabacundo substation ICB January 2015 11,135
Tabacundo substation 230/138 kV 167 MVA & 230/69 kV
100 MVA. ICB January 2015 18,150
El Inga substation expansion, 230/138 kV, second three-phase
autotransformer 300 MVA ICB January 2015 3,469
Riobamba substation expansion, second transformer
230/69 kV, 100 MVA ICB January 2015 3,738
Transmission line connection Durán substation, 230 kV,
double circuit, 2 x 750 ACAR, 10 km NCB January 2015 2,610
Durán substation, 230/69 kV, 225 MVA ICB January 2015 9,778
San Gregorio substation expansion 230/69 kV 167 MVA ICB January 2015 5,349
Yanacocha substation expansion to 138/69 kV 67 MVA ICB October 2015 3,960
La Concordia-Pedernales 138 kV transmission line, double
circuit, 750 ACAR, 95 km ICB October 2015 16,530
Pedernales substation 138/69 kV, 66 MVA ICB October 2015 5,895
La Concordia substation 138 kV, sectioning ICB October 2015 3,357
Goods
Esclusas substation, installation capacitor banks 2 x 60 MVAR ICB October 2015 2,159
Consulting Services
Studies and final designs and EIA for the Chorrillos-Frontera
Sur transmission line & Frontera Sur 500kV substation QCBS February 2015 5,000
D. Procurement supervision
6.9 All ICB processes for goods and works, selection of consulting services with an
estimated amount above US$200,000, and single-source selection will be subject
to ex ante review by the Bank.
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6.10 The Bank will conduct ex post review visits at least once every 12 months.
Ex post review reports will include at least one physical inspection visit, as
appropriate. It should be noted that no less than 10% of the contracts reviewed
will be physically inspected during the program.
6.11 Advance procurement/retroactive financing and recognition of expenditures: The
Bank may provide retroactive financing, charged to the loan proceeds, and
recognize expenditures, charged to the local contribution, up to an amount
equivalent to 20% of the loan or the local contribution, respectively, for eligible
expenditures incurred prior to the loan approval date related to preinvestment
studies for the program, provided that such expenditures meet requirements
substantially similar to those established in the loan contract.3
Ex post review thresholds (US$)
Works Goods Consulting services Individual
consultants
Single-source
selection
< 3,000,000 < 250,000 < 200,000 < 50,000 All
Note: The threshold amounts established for ex post review are based on the fiduciary execution capacity of the
executing agency and may be modified by the Bank in the corresponding procurement plan, as greater institutional
capacity and experience are acquired. In addition, the first three contracts for amounts below the ICB threshold will
be reviewed on an ex ante basis.
E. Records and files
6.12 The executing agency will create a specific programming and budgetary structure
for identifying the program in its financial management system; it will maintain
updated records, and keep its files properly organized so they can be periodically
reviewed by the Bank. The file containing the documentation for program
procurement and contracting will be in a single folder that is readily
distinguishable from the processes financed with local contribution resources or
nonprogram resources, and must be available at all times for auditing purposes.
VII. FINANCIAL MANAGEMENT AGREEMENTS AND REQUIREMENTS
A. Programming and budget
7.1 Programming and budgeting of the program will be done in accordance with
national legislation and the in-house procedures of CELEC EP-Transelectric. The
executing agency has already developed its 2014 AWP and has a multiyear work
plan 2013-2017, and these include the projects that make up this program. The
executing agency budget also incorporates the disbursements anticipated from
IDB loan 2457/OC-EC.
3 Such expenditures must have been incurred beginning 7 March 2014.
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B. Accounting and information systems
7.2 The program’s accounting will be based on Ecuadorian accounting standards for
public enterprises, using the IFS information system of CELEC EP.
C. Disbursements and cash flow
7.3 The Bank will disburse the loan using the advance of funds modality. The
monetary value of each advance will be based on the estimated cash flow
necessary for executing planned program activities for periods of six months (two
advances per year). Cash flow programming must be consistent with the annual
work plan and the procurement plan approved by the Bank, and must span a
moving horizon of 12 months. Drawings will be deposited to the designated
account opened by CELEC EP in the Central Bank of Ecuador for this purpose.
Both the MEER and the executing agency undertake to use these resources
exclusively to pay for transactions relating to program activities.
D. Internal control and internal audit
7.4 The internal audit unit of CELEC EP, which was established in September 2013,
will include specific control activities for the program in its annual work plan.
This unit will be strengthened in 2014 with the addition of five new members. In
performing its work, this unit applies the Government Audit Manual, Government
Audit Standards, and Technical Standards for Internal Control.
E. External control and reports
7.5 External control of the program will be performed by an external auditing firm
acceptable to the Bank. This firm will be contracted using local counterpart funds
through a competitive process based on terms of reference agreed upon between
CELEC EP-Transelectric and the IDB. The annual report on the audited financial
statements and the report on the integrated ex post review of procurement and
disbursements will be delivered to the IDB no later than 120 days after the close
of the corresponding fiscal year.
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F. Fiduciary supervision plan
Supervision
activity
Supervision plan
Nature and scope Frequency Responsible party
Bank Third party
Operational
Review of progress
report Every six months
Fiduciary and
sector team
Review of portfolio
with executing agency
In accordance with MF
requirements
Fiduciary and
sector team MF
Financial
Update of cash flow
programming and
disbursements
Every six months, or with
each request for advance
when program circumstances
so require.
Fiduciary and
sector specialist CELEC EP
Inspection visits Annual Fiduciary
specialist Consultant
Financial audit and
ex post review Annual
Fiduciary
specialists
Executing agency /
external auditor
Procurement
Ex ante review of
procurement processes During program execution
JEP/executing
agency Executing agency
Update of procurement
plans Annual
JEP/executing
agency Executing agency
Compliance
Fulfillment of
conditions precedent Once; Q2 2014 Fiduciary team Consultant
Budgetary allocation Annual, in January of each
year
Fiduciary
specialist Executing agency
Delivery of audited
financial statements Annual
Fiduciary
specialist
Executing agency /
auditor
G. Execution arrangements
7.6 The borrower and the Bank have agreed that CELEC EP, through its business unit
Transelectric, will serve as executing agency for the program and will have
general responsibility for fiduciary reporting and for overall management of the
program.
7.7 The Program Operating Manual for program EC-L1070 will be updated and
supplemented for application in this program, and it will establish in detail the
requirements for this program’s overall management.
DOCUMENT OF THE INTER-AMERICAN DEVELOPMENT BANK
PROPOSED RESOLUTION DE-___/__
Ecuador. Loan ____/OC-EC to the Republic of Ecuador National Transmission System Strengthening Program
The Board of Executive Directors RESOLVES:
That the President of the Bank, or such representative as he shall designate, is authorized, in the name and on behalf of the Bank, to enter into such contract or contracts as may be necessary with the Republic of Ecuador, as Borrower, for the purpose of granting it a financing to cooperate in the execution of a national transmission system strengthening program. Such financing will be for an amount of up to US$150,000,000 from the Ordinary Capital resources of the Bank, and will be subject to the Financial Terms and Conditions and the Special Contractual Conditions of the Project Summary of the Loan Proposal.
(Adopted on __ ______ 201_)
LEG/SGO/CAN/IDBODOCS#38348296-14 EC-L1117