• Santiago Hydroelectric Project Phase 1: 2,638 MM USD
  • Transmission Line: 323 MM USD
  • Aluminium Smelter Plant: 1,553 MM USD
  • Integral Project: 4,514 MM USD

Financial Indicators

IRR: 14.36%

RECOVERY TIME: 11 - 12 years

Management Model

  • Concession for the generation of electric energy, by means of self-generation or large consumer anchored the project for development of the primary aluminum plant, the project also contemplates the sale of surplus electricity generation to the Ecuadorian electricity market
  • The investor must construct, operate and maintain the hydroelectric project and its system of evacuation of electrical energy to the aluminum plant for the negotiated period of concession, at the end of this period, it must be transferred to the Ecuadorian state without cost
  • The investor must build and operate the aluminum plant; the production of this plant may be freely sold in any market according to the investors convenience, the aluminum plant being a purely private business will remain as property of the investor indefinitely

Payment modality for surplus electricity:

The energy that is not used in the aluminium manufacturing process will be remunerated through a regulated contract with the distribution companies.

Benefits for the Investor: Integrated Project:

  • Income tax exemption for the first 10 years of operations
  • Exemption to the currency outflow tax on the importation of goods, acquisition of services, 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
  • Exemption on customs rights and VAT on imported goods

Additionally, for the aluminium plant:

Being located in a Special Economic Development Zone (ZEDE), there is also a 5% reduction of income tax for the following 5 years.


Export electricity through primary aluminium, satisfying Latin American market demand and guarantying supply of future potential demand of Ecuador’s Electric market.

Project Details

Santiago Hydroelectric Project:

  • Civil works for: 3,600 MW
  • Power Phase 1: 1,800 MW
  • Energy generation annual average: 13,000 GWh
  • Evacuation and transmission system: 345km – 500 kV

Aluminium Smelter Plant:

  • Required power: 857 MW
  • Required energy: 8,000 GWh/year
  • Plant capacity: 560 kt/year

Technical description of the Project

Santiago Hydroelectric Project:

  • Feasibility Study and Final Designs of The Santiago Hydroelectric Project developed by Comisión Federal de Electricidad de México (CFE) and validated by LOMBARDI S.A.
  • Preliminary Studies of the Transmission Line

Aluminium Smelter Plant:

  • Feasibility Study of an Aluminium Smelter Developed by China Aluminium International Engineering Corporation Limited (CHALIECO).


  • The energy generation market is divided in to 8,000 GWh/year for producing primary aluminium and 5,000 GWh/Year for Ecuadorian electric market demand
  • Production of 560 KT/year primary aluminium will supply Latin American demand

Regulatory Framework

  • Organic Law of Incentives for Public-Private Associations and Foreign Investments
  • Organic Law of Public Service in Electric Sector
  • Organic Code of Production, Trade and Investments, COPCI


Santiago Hydroelectric Project:

  • Province: Morona Santiago
  • Canton: Limón Indanza, Tiwinza, Santiago
  • Sector: Yukiantza

Aluminium Smelter Plant:

  • Province: Guayas
  • Canton: Guayaquil
  • Sector: Posorja