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IADB to fund electric mobility in Ecuador [free access]

December 14, 2020

The Inter-American Development Bank (IADB) has approved a USD43 million conditional credit line to provide funding support for the procurement of clean vehicles and the replacement of internal combustion engine vehicles. The bank has approved an initial USD33 million loan which will be used to subsidise electric mobility.

 

The credit line comprises two elements: a USD33 million concessional component from the Clean Technology Fund (CTF) having an amortisation period of 40 years and a grace period of 10.5 years as well as a USD10 million tranche from IADB having a tenure of 25 years, a grace period of six years, and carrying an interest rate of London Interbank Offered Rate (LIBOR). The funds will be used to finance the procurement of about 80 electric buses and 370 electric taxis by transport concessionaires. In addition, USD1 million will be provided to fund the technical, financial, and legal structuring of the projects in support of national and municipal government agencies and transport operators.