CAF approves USD 303mn for the Quito Metro and improvements to Ecuador's power transmission system

This press release was published in English using an automatic translation system

CAF

CAF -development bank of Latin America and the Caribbean- approved US$303 million (mn) to finance two major projects in Ecuador, which will enhance urban mobility and ensure the stability of the national electricity sector.

The first approval, for an amount of USD 223mn, will be allocated to the National Transmission System Expansion Program (PESNT), designed to improve the country's power transmission infrastructure through the installation of new transformation equipment and the construction of transmission lines. Its main objective is to meet the sustained growth in demand and facilitate the incorporation of non-conventional renewable generation projects into the National Interconnected System, thus ensuring the reliability and operational security of the energy supply. The PESNT includes three projects:

1. La Paz - Molino Transmission System (230 kV) in Azuay, which will reinforce the system to allow the entry of wind and photovoltaic generation.
2. Membrillo - Matala - La Ceiba - Colectora - Pasaje Transmission System (500 kV), which connects several substations in Loja and includes a 500 kV line that will allow the entry of at least 350 MW of non-conventional renewable generation into the transmission system.
3. Chorrillos - Lago de Chongón Transmission System (230 kV) in Guayas, which is aimed at supplying growing power demand and mitigating the risk of an energy deficit in Guayaquil, improving supply security.

The second loan, for US$80mn, will be used to partially finance the extension of Quito Metro’s First Line, specifically on the section between El Labrador and La Ofelia. This expansion will consolidate the system’s operation, extending coverage toward the north of the city along an underground corridor of approximately 5.346 kilometers, which will include the construction of four new stations.

This project is expected to reduce travel times between the existing El Labrador station and the future La Ofelia station to 8 minutes compared to the current 48 minutes required for a typical peak-hour trip, and to increase demand for the Metro, improving connectivity for more than 70 neighborhoods and strengthening sustainable and equitable urban mobility.

With these two projects, CAF reaffirms its role as a strategic partner of Ecuador. Investing in sustainable urban mobility and in improvements to energy services is key to improving the quality of life of Ecuadorians and the competitiveness of cities, and also to accelerating the energy transition

Sergio Díaz-Granados, executive president of CAF

In addition, in an extraordinary meeting, CAF’s Board of Directors reelected Sergio Díaz-Granados as executive president for the 2026-2031 period. With this decision, CAF looks to the future with stability, leadership, and a clear vision to continue being the driving force behind sustainable development in the region. Among the achievements of Díaz-Granados’s administration highlighted by the Board are the USD 7.000 billion (bn) capitalization, geographic expansion, the best risk ratings in its history, and the boost to the private sector.