The Ministry of Environment and Energy has officially launched the Public Selection Process (PPS) for the development of the Combined Cycle Block I – 400 MW, a key initiative within Ecuador’s energy transition strategy.
A Strategic Project for System Reliability
The PPS aims to award the concession for a natural-gas combined cycle power plant with an approximate capacity of 400 MW (±40 MW). The project is designed to:
- Strengthen the reliability of the national thermoelectric system.
- Reduce greenhouse gas emissions.
- Decrease dependence on hydropower during low-hydrology periods.
- Ensure a minimum dispatch of 60% of effective capacity.
The plant will be developed at one of the designated coastal sites in Guayas or El Oro provinces.
Scope of the Concession
The concession covers:
- Engineering and financing.
- Construction and commissioning.
- Operation and maintenance for 21 years.
- Development of the associated 230 kV transmission line.
- Installation of natural gas facilities (onshore or offshore).
Generation and transmission assets will revert to the State at the end of the concession. Natural gas facilities will not revert.
Investment and Revenue Framework
The project’s estimated costs include:
- CAPEX: USD 838 million.
- OPEX: USD 201 million.
The concession’s revenue structure consists of:
- A fixed availability payment.
- A variable fuel-indexed charge (linked to Henry Hub).
- A variable non-fuel charge indexed to the National CPI.
The winning bidder will be the one offering the lowest Average Energy Price while meeting all technical and legal requirements.
Key Milestones
- From March 2026 – Process launch and initial dissemination.
- April 2 – May 5, 2026 – Prequalification stage.
- June 4 – 24, 2026 – Bidder registration and acquisition of participation rights; questions and clarifications.
- June 25 – November 26, 2026 – Offer preparation.
- Nov 27, 2026 – Jan 11, 2027 – Technical offer evaluation.
- Jan 12 – Feb 25, 2027 – Economic offer evaluation.
- March 5, 2027 – Recommendation for award.
This information is a summary of legal developments of interest, and therefore cannot be considered as provided advice. If you have any questions, please contact the AVL team.