Financial Indicators

IRR: 10%

Recovery Time: 9 years

Management Model

  • Contract for the generation, operation and maintenance of the cascaded plants of the Paute Comprehensive Hydroelectric Complex
  • The Ecuadorian State aspires to receive by the proposed business the minimum investment of 2,000 MM USD at the signing of the contract and guarantees a fee per kWh generated considering an average annual generation of 8,492 GWh, for a 20-year contract period
  • The proposed average rate may be adjusted monthly based on the hydrology and average generation presented, thus ensuring to the investor the coverage of the hydrological risk in the basin and to the Ecuadorian State the optimal operation of the Mazar and Amaluza reservoirs

Benefits for the Investor:

  • Working business with hydrology and real generation for more than 34 years (minimum hydrological risk)
  • 100% captive market guaranteed by the Ecuadorian State
  • Possibility of optimization of operation costs and maintenance that would improve their investment return

Public-private Alliance Incentives:

  • Exemption to the currency outflow tax for funding, dividends or profits, payments for acquisition of shares, rights or participations
  • Through the signing of an Investment Agreement between the State and the Investor, stability is acquired pertaining the following: incentives, taxation and enabling conditions of the service agreement


To obtain for Ecuador a capital in exchange for the provision of services for the generation, operation and maintenance of the Comprehensive Paute Complex (Mazar, Molino and Sopladora).

Project Details

Paute Mazar:

  • Power Output: 170 MW
  • Average annual energy generation: 820 GWh

Paute Molino:

  • Power Output: 1,110 MW
  • Average annual energy generation: 4,872 GWh

Paute Sopladora:

  • Power Output: 487 MW
  • Average annual energy generation: 2,800 GWh

Technical description of the Project

Current state of the centrals:
Optimum conditions and generating base energy for Ecuador.

Paute Mazar:
In operation since December 2010, rock fill gravity dam, 2 Francis type turbines, powerhouse at the dam foot, regulates water inflow to the downstream power projects and retains sediments.

Paute Molino:
In operation Stages A-B since 1983. Stage C since 1991, concrete arch dam and 10 Pelton type turbines.

Paute Sopladora:
In operation since December 2016, receives directly the outlet water from Molino powerhouse and 3 Francis type turbines.


  • The Ecuadorian power system guarantees the purchase of 100% of the energy output; it is the base source of electric energy in the country
  • Average annual output = 8,492 GWh

Regulatory Framework

  • Organic law of Incentives for Public-Private Alliances
  • Organic Law of the Public Service of the Electricity Sector
  • Organic Code of Production, Trade and Investments


  • Provinces: Azuay, Cañar and Morona Santiago
  • Canton: Sevilla, Azogues and Santiago
  • Sector: Mazar, Amaluza, Guarumales and Sopladora