Minas-San Francisco Hydroelectric Project underwritten by SINOSURE

On April 8, 2021, Harbin Electric International Co., Ltd. (HEI) and CORPORACION ELECTRICA DEL ECUADOR, the owner of Ecuador Minas-San Francisco Hydroelectric Project, officially signed the final turn-key minutes of the 3*90MW Minas-San Francisco Hydroelectric Project, which marked the formal overall handover of the project. 

Its construction kicked off in May 2013 and it started power generation and grid connection in October 2018. It was officially put into commercial operation in September 2019, and the transfer of civil engineering was completed in June 2020. 

In April 2013, SINOSURE issued an export buyer's credit policy that provided the medium- and long-term financing of over USD 300 million for the Minas-San Francisco Hydroelectric Project undertaken by HEI as an EPC contractor, and the financing term was 15 years.

In December 2014, SINOSURE issued another export buyer's credit policy for Ecuador 500kV UHV Transmission and Transformation Line Project undertaken by HEI. The 15-year financing of over USD 500 million supports Ecuador in building a UHV transmission network connecting the northern and southern parts of the country, and breaks the bottleneck of outbound transmission of the large hydropower plants in the country.

Regarded as one of the most important hydraulic projects in the Ecuadorian Pacific water system, the Minas-San Francisco Hydroelectric Project has a total installed capacity of 270MW and a maximum annual output of 1,290 GWh. As the third largest hydroelectric power station in the country, Minas-San Francisco Hydroelectric Power Station contributes 1,300 GWh of clean energy each year. 

In addition to its primary function of power generation, it also serves as the facility for water and soil conservation and tourism. Since the start of grid-connected power generation, it has benefited over 220,000 households, and provides Ecuador and South American with uninterrupted electricity energy in a clean and environmental-friendly manner. Moreover, it reduces the coal-fired power and keeps optimizing the local energy mix. The Ecuadorian statistics show that each year it reduces a carbon emission of 690,000 tons and the use of fossil fuel.

As the most mature clean energy, hydropower is featured with large quantity, stable supply and flexible energy storage. However, the construction of hydroelectric power stations is under high pressure of environmental protection, and challenged by the issues of maintaining biodiversity and ecological balance. 

Located on a high plateau, the country boasts a wide variety of flora and fauna and thus its environmental regulations are rigid. During the environmental impact assessment of the Minas-San Francisco Hydroelectric Project, SINOSURE carried forward the concept of green development, and strictly observed the environmental criteria on technological feasibility, economic feasibility, social benefits, etc. 

As the EPC contractor, HEI adhered to the high standards of environmental-friendly design and construction, which was a key precondition for the approval of the project. During the construction, HEI attached great importance to the environmental and biodiversity protection around the intended site, and executed a pertinent plan of animal and plant rescue that relocated and preserved the critical species within the reservoir scope. The results of environmental monitoring made by the Ecuadorian side during the project construction show that the local biodiversity increased after the completion of construction. Before the construction, 66 plant species were founded in the intended site while in the latest environmental monitoring, 141 plant species were found including 5 unique species of Ecuador. This area is also the habitat for a wide variety of birds, mammals, amphibians, reptiles and fish, including some rare species.

To cope with global warming and the frequent occurrence of extreme weather, green development has turned out to be a significant target of future global development. On the journey of boosting the green development of BRI together, Minas-San Francisco Hydroelectric Power Station witnessed the friendship between the Chinese and Ecuadorian peoples, and demonstrated China's responsibility as a big country to participate in, contribute to and lead the global ecological progress. As a policy-oriented financial institution, SINOSURE targets at a world-class green credit risk management organization with a top international reputation, fully implements China's major decisions and deployments like carbon peaking & carbon neutrality, and construction of the green BRI, upholds the philosophy of green development, establishes and optimizes the mechanism of green financial sustainability, and improves the green financial service capability as a whole.