IDB approves $300 million loan to bolster Ecuador's power grid

QUITO, Nov 26 (Reuters) - - The Inter-American Development Bank (IDB) approved a $300 million loan to help Ecuador strengthen its electrical system, the Andean nation's Finance Ministry said on Wednesday.

• The investments are part of the IDB Group's Amazonia Siempre initiative, focused on sustainable development, forest conservation and improving quality of life in the region.

• The financing includes $270 million in IDB Ordinary Capital with a 22.5-year term, 8-year grace period.

• An additional $30 million comes from the Clean Technology Fund on concessional terms with a 1.19% interest rate over 20 years.

• More than 700 km of transmission lines will be upgraded with advanced conductors to increase system capacity and facilitate integration of new renewable generation.

• The project prioritizes expanding electrical access in the Amazon, with an estimated 5,600 rural and urban-marginal households expected to connect to the national power grid by 2031.

• Funds will help increase renewable energy generation and improve transmission infrastructure.

• Later on Wednesday, the World Bank approved $1.1 billion to improve fiscal sustainability, create jobs, and manage disaster risk.

• The package includes $900 million to support fiscal management, private-sector growth, job creation, and protection of vulnerable groups.

• The remaining $200 million will strengthen government programs to manage climate, geophysical, and public health risks, improving institutional capacity.