Ecuador utility Empresa Generadora del Austro S.A. (ElecAustro) has named Hidalgo &Hidalgo y Asociados to build the 26-MW Ocana hydroelectric project in Ecuador’s Canar Province.
An ElecAustro official told Business News Americas that the Ecuador construction company is to construct civil works including surge shaft, penstock, and transmission line, and design, supply, install, test, and commission electro-mechanical equipment, including a substation and supervisory control and data acquisition system.
Hidalgo &Hidalgo is to begin work in April, upon approval of the contract by the attorney general, the official said. Construction is to require 852 days.
Ecuador’s Ministerio de Economia y Finanzas said Ocana will generate power for 4 cents per kWh, helping meet demand in southern Ecuador and displacing diesel generation and its environmental emissions.
Ecuador’s energy and hydrocarbon investment fund made Ocana its first actual investment in a hydroelectric project last year, providing it US$14 million and making the Ecuador government a shareholder in its operating company. (HNN 11/7/07)
The technical committee of the Fondo Ecuatoriano de Inversion en los Sectores Energetico e Hidrocarburifero (FEISEH) agreed to make the capital investment in ElecAustro, which is developing Ocana. The US$14 million capital investment is part of US$36.7 million the fund approved for Ocana. The remaining US$22.6 million will be in the form of a 10-year loan.
Ocana is to cost a total of US$44.2 million, of which FEISEH is providing 83 percent. ElecAustro is to contribute the remaining funds from its own resources.