Skip to navigation Skip to main content Skip to site map

Projects

Project Brief

Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.

 

Project name
Hidropastaza S.A.
Project ID
4011
Fiscal year
2001
Status
Not Active
Guarantee holder
Construtora Norberto Odebrecht S.A.
Investor country
Brazil
Host country
Ecuador
Sector
Power
Gross exposure
 $150.0 million
Project type
Non-SIP

Construtora Norberto Odebrecht of Brazil received a $150 million MIGA guarantee for its loan guaranty to BNDES (Brazil's national economic and social development bank) for its loan to Hidropastaza S.A. The guarantee covers the risk of breach of contract, with an additional amount is to be covered under the Cooperative Underwriting Program. The project involves the construction and operation of a run-of-river hydroelectric plant, called San Francisco Hydroelectric, southeast of Quito. The 230 MW power plant will be located almost entirely underground, with water from a nearby river fed to generators via an underground tunnel. Electricity generated at the plant will be sold either on a spot basis in Ecuador or through short-term purchase agreements with public and private organizations. The hydroelectric project is expected to significantly help the country's power sector expand its capacity, leading to a reduction in the average energy price in the wholesale market and helping to alleviate current bottleneck problems. The project will play a pilot role in the sector's privatization. Major savings will result from the plant as the energy will substitute for expensive fossil fuel imports. Moreover, the project will have a positive downstream effect on industries heavily dependent on power, such as cement plants and steel mills.

The project is expected to give priority to the use of local labor, infrastructure, and services during construction. Hidropastaza will generate about 1,500 jobs during the construction phase and approximately 70 local permanent positions thereafter. Employees will receive extensive training, both in Brazil and Ecuador, using advanced technology. Over the first five years of operation, an estimated $27 million will accrue to the government in the form of taxes and dividends.

 
Apply for an Investment Guarantee
The World Bank Group logo