Termoguayas Generation S.A.
MIGA has provided $102.6 million in investment insurance to Rodeo Power Pte. Ltd. (Rodeo) and New Energy Industrial Ltd. (New Energy), wholly owned subsidiaries of Keppel Energy Pte. Ltd. (Keppel Energy). Rodeo and New Energy have respectively provided a shareholder loan for five years and equipment leases of seven years to Termoguayas Generation S.A. (TGSA), another wholly owned subsidiary of Keppel Energy. TGSA, the project enterprise, has entered into a 15-year concession contract with the National Electricity Council of Ecuador. MIGA’s insurance covers against the risks of transfer restriction, expropriation, and breach of contract over the period of the loan and leases.
Keppel Energy, through TGSA, has installed and is operating a 150 MW barge power project in Guayaquil, Ecuador. TGSA leases the project assets from New Energy, which consist of five barges mounted with engines and generator sets and shore-based support facilities, including fuel storage tanks, an electrical switchyard, and a 230-kV transmission line connecting the project to the national grid.
Ecuador has experienced severe power shortages, particularly in the dry season, as hydro-generation makes up more than 50 percent of the country’s total installed capacity. The majority of installed thermal capacity in Ecuador consists of older and less efficient plants, resulting in high generation costs. TGSA’s power barges will be able to provide reliable and competitive energy to alleviate electricity shortages and to prevent “brownouts” that would have a serious negative impact on the economy. The project is also expected to result in significant cost savings to the energy sector of Ecuador due to its ability to dispatch electricity at a lower cost than most of the existing thermal plants.
MIGA’s participation in this project is aligned with its commitment to support infrastructure projects and promote South-South investments.