Ecuador’s state power corporation Celec has awarded BNP Paribas Securities a contract to help structure a revenue model for the operation of hydroelectric plants by the private sector.
BNamericas previously reported that Celec had launched a call to hire a financial firm to evaluate existing plants of over 180 MW capacity that belong to Celec in the lead-up to a potential offering, which would start with its 487-MW Sopladora facility.
The US$755 million facility is located on the Paute River in Azuay and Morono Santiago provinces. The project is the third-largest hydro installation in Ecuador but does not include a dam, instead relying on water discharged by the nearby 1,075-MW Paute.
The 24-week contract with BNP entails structuring the public selection process, recommending financial alternatives, preparing a data room for due diligence, identifying potential investors, and marketing, among other tasks.
Last month, Celec and Consorcio China Gezhouba Group-Fopeca signed documents for the definitive reception of Sopladora, which came online in 2016.
Celec also plans to select a private investor to build and operate the 595-MW Cardenillo hydro.