Investment Catalogue 2012

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C A T Á L O G O D E

INVERSIÓNPARA PROYECTOSESTRATÉGICOS

I N V E R T I R E N E C U A D O R , E S I N V E R T I R P A R A E L F U T U R O .



CATÁLOGO DE INVERSIÓN PARA PROYECTOS ESTRATÉGICOS

Jorge Glas EspinelMinistro de Coordinación de los Sectores Estratégicos

Wilson PastorMinistro de Recursos Naturales No Renovables

Esteban AlbornozMinistro de Electricidad y Energía Renovable

Jaime GuerreroMinistro de Telecomunicaciones y de la Sociedad de la Información

Walter SolísSecretario Nacional del Agua

Investigación y ProducciónMinisterio de Coordinación de los Sectores Estratégicos

DiseñoMinisterio de Coordinación de los Sectores Estratégicos

Impresión-------------

Quito, enero 2012Tercera EdiciónEspañol - Inglés



Investment Cataloguefor Strategic Projects

INDEX

Message from Jorge Glas, Coordinating Ministerfor Strategic Sectors

IntroductionStrategic Sectors

EcuadorInvest in EcuadorSecurity for Foreign Investment

Electric Projects• Hydro-electric• Geothermic• Distribution

Water ProjectsMining ProjectsOil ProjectsTelecommunications Projects

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Incentives for Foreign Public and Private Investment 9Opportunity to Finance Projects in Ecuador 10Contracting Method 11Technical Denitions 12Focal Point 14

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33445566



Dear friends,

The Government of the Republic of Ecuador has undertaken a responsible path in the process for the

exploitation of natural non-renewable resources, that will insure for future generations a healthy andadequate environment for a good life of its inhabitants; that is, without inhibiting itself from a rationalexploitation to generate economic resources that can be invested in social development, for the welfare of its people.

The changes made by the Government have established the foundations for this process, and are basedupon a deep legal reform, the fundamental instruments of which are the Constitution of the Republicapproved in 2008, the National Plan for the Good Life 2009-2013, codes and laws approved, which genera-te an adequate and stable legal framework, combined with the incentives to attract national and foreigninvestment.

The National Government has undertaken important investments in infrastructure, through importantProjects, that have brought a dynamic character to the economy, the generation of employment, anincrease in the availability of capital and future savings.

Important elements of action have been dened, that strive to diversify products and markets andestablish Strategic Alliances with other nations, to promote the complementation of economies, producti-ve links and the reduction of dierences based on recognizing them, in size and development.

This strategic vision in action, rescues the role of the State as the rector, planner, regulator and organizer of economic activities, based on proactive and long term public policies, complemented with privateinvestment, which constitute an accelerator of velopment.

These policies have permitted, that during 2010, the Ecuadorian economy has consolidated its recovery,following the 2009 crisis, and it has grown at almost a 4%, and in 2011 experienced one of the highest ratesof growth in Latin America, with a percentage greater than 5%. On the other hand, the rate of inationduring 2010 concluded with a 3,33%, a slightly lower percentage than that forecasted by the Government,and the lowest rate in three years. GDP per capita maintained its trend of growth and exceeded 4.000dollars, a fact that transforms Ecuador into a country of middle-high income, in accordance with theinternational classication.

The index of inequality is the lowest in the last decade. According to the Gini Coecient, during the periodbetween June 2007 and June 2011, it went from 0,52 to 0,47, as a result of the public policies implemented,

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which have permitted an improvement in the provision of goods and services in favor of the most vulnera-ble population.

The National Government has invested in Strategic Sectors, which fall under the competence of this StatePortfolio, over 9.500 million dollars between 2007 and 2011, of which 6.305 million correspond to thehydrocarbons sector; 1.500 million to the electric sector; 1.397 million to the telecommunications sectorand 288 million to the water sector.

The investment made by the State in large hydroelectric projects under construction, carried out during2010 and 2011, will signicantly modify the structure of the energy matrix of the country, going from a48,33% of hydroelectric generation which was available in 2006, to a 93,53% projected for 2016. Amongother things, this will contribute to a considerable reduction in CO2 emissions, by replacing thermalgeneration with hydroelectricity.

This increase in hydroelectric generation, in the medium term, will transform Ecuador, into an electricityexporting country. In addition it will cover the internal demand for electricity with a renewable, clean, andfriendly energy towards the environment and at a low cost.

Regarding private investment, it is possible to highlight that on the basis of the renegotiation of oilcontracts, new investments have been committed to in the order of 1.386 million dollars between 2011 to2016; and by means of the process for the negotiation of contracts in large mining (large scale mining) it isestimated that new private investments in this sector will reach 5.160 million dollars during the period2011 - 2016.

What was a challenge is now a reality. As a result of this, I invite the International Community to be a part

of this process, as has already been the case with governments, institutions, private and public companiesthat are presently investing in our country.

I would like to express our sincere thanks to the countries, development agencies, nancing institutionsand national and international companies that have shown their condence in the policies implementedby the Government of Ecuador, a fact that has permitted us to achieve important investments in infrastruc-ture, which have been fundamental to leverage the economic growth of our country

JORGE GLAS ESPINELCoordinating Minister for Strategic Sectors

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Introduction

The construction of infrastructure works that cover the demands of 14 million Ecuadorians, theexploitation of the strategic areas of the Nation to generate resources that will benet the entirepopulation; as well as, obtaining the resources that will permit us to make these and other works areality, are imperative for the Government of Economist Rafael Correa Delgado.

This new edition of the Catalogue of Projects in Strategic Sectors brings up to date the investmentsand the nancing required for the coming years and strives to orient investors and nancial institu-tions regarding the opportunities that our country oers to foreign investment. It also constitutes aguide for governments and companies of the world to become familiar with the areas open toinvestment, as well as the legal and economic conditions that Ecuador oers to its investors.

This document is a joint eort of all the Ministries of State that govern the sectors of: Telecommunica-tions, Hydrocarbons, Mining, Electricity and Renewable Energies, as well as the management of waterresources, with which it has the purpose of strengthening the relations with the countries of theInternational Community, as well as generating new alliances with strategic partners to build greatworks of infrastructure and to take advantage of its natural resources.

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Ecuador

Ecuador limits to the north with Colombia, to the south and east with Peru, and to the west with thePacic Ocean. There are four distinct geographic regions. The rst corresponds to the Sierra orAndean highlands, which traverse the country from the north frontier with Colombia to the frontierwith Peru in the south. The second region corresponds to the Coast, a coastal plain between theAndes and the Paci¬c. The third is the Amazon region, formed by the high basin of the AmazonRiver. The fourth is the Insular, constituted by the Galápagos Archipelago located 1.000 Km. formthe continent, in the Pacic Ocean.

The Ecuadorian territory is divided into 24 provinces, which are divided into cantons, and these inturn into urban and rural parishes. The ocial language is Spanish.

Ecuador enjoys a very rich ora and fauna, a reason that has placed it in the l ist of the most megadiverse nations of the world.

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Invest in Ecuador

Ecuador oers a stable regulatory framework in which the potential for investments in its StrategicSectors is leveraged, with opportunities to generate mutual benets and achieve the developmentof our countries.

As a policy of the Government of Economist Rafael Correa Delgado, is the priority of providing tothe public and private sectors, national and foreign the necessary tools that will permit a consolida-tion of the conditions required to attract investors.

Transparency in Public Contracting.

All public contracting processes are carried out by the National Institute for Public Acquisitions(INCOP in Spanish), by means of agile transparent, ecient and technologically up-to-date proce-dures which facilitate the tasks of control both for contracting entities as well as of suppliers andthe citizenry in general.

The National Institute for Public Acquisitions (INCOP) articulates, harmonizes and controls theexecution of works that are carried out with public resources.

For additional information please visit: www.compraspublicas.gob.ec

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Foreign Investment Security(Organic Code for Production)

EQUALITY, of conditions and protection provided for investments and foreign and nationalinvestors.

PROPERTY: Protection oered to the property of investors (prohibition of all forms of consca-tion).

RIGHTS: Liberty of production, marketing, imports and exports of goods and services, subject tothat stipulated in the Constitution, laws and regulations established under existing legal norms.

TAXATION: National and foreign investments are subject to the same Tax Regime.

RESOLUTION OF CONFLICTS: In all contracts with foreign investors it is possible to agree onarbitration clauses to resolve controversies that may appear between the State and investors, suchconicts may be submitted to international arbitration in accordance with the treaties signed byEcuador.

INVESTMENT CONTRACTS: Provide stability regarding tax incentives and those determined in theProduction Code.

OTHER: Free transfer abroad of prots and investments (once all tax obligations and other respon-sibilities are complied with in accordance with legal norms).

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Incentives for Foreign Public and Private Investment(Organic Code for Production)

COMPLEMENTARY NATURE: Foreign investments shall have a direct complementary nature rolein Strategic Sectors and those that have received priority in the economy that require investmentand nancing.

DEVELOPMENT AND PROMOTION, of Strategic Sectors:

INCENTIVE BY SECTOR: Total exemption of Income Tax for ve years, for new investments, as of the operation phase in the sectors that contribute to the change of the energy matrix; strategicsubstitution of imports; promotion of exports and rural development. For the specic case of Projects in Strategic Sectors, applicable to:

Delegate to private initiative the investment in Strategic Sectors, in those cases established

by the laws of each sector.

New Projects, of private enterprises for the generation of electricity, under an equaltreatment concept regarding the mechanisms and conditions of guarantee and/or paymentin the purchase of energy, as that applied to international transactions.

Renewable Energy, including bio-energy or energy from biomass (eolian, biogas, photovol-taic, geo-thermal and hydroelectric power plants of up to 50 MW of installed capacity,tide-generated energy, biomass and development of the production of bio-fuels).

Petrochemicals; production of substances on the basis or basic raw materials derived fromgas and oil (production of rivates of hydrocarbons, manufacture of plastics in primary formand synthetic rubber, synthetic or articial bers, plastic products and articles, paints, varnis-hes, etc.)

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-

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-

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Companies that enjoy an internationally recognized trajectory.An economic oer within market parameters.Quality of materials, equipment and service.Percentage of national aggregate.

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Firm oer for nancing with an internationally recognized lending entity.

Percentage of nancing over the amount of the investment.Terms of the credit.Period of grace for payment of capital (at least equal to the period for the execution of theproject).Rate of interest (all in cost).

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Opportunity to Finance Projects in Ecuador(Public Planning and Finances Organic Code)

FINANCIAL AGREEMENT: Financing may establish stipulations related to the participation of companies in the country that provide loans for the execution of Projects, under the condition thatthe nancing is provided under protable, advantageous or concessional terms for Ecuador.

GUIDELINES TO OFFER:What is observed when evaluating an oer:

If the oer includes nancing:

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CONTRACTING MODALITIES

Projects in this Catalogue, in accordance with each sector and Government policies, may be undertakenthrough dierent contracting modalities, as follows:

International Tenders: Contracting processes in which the interested parties are invited to presenttheir technical and economic oers to develop a project nanced by the Ecuadorian State.

Tenders with nancing: Selection processes in which several interested parties are invited topresent their technical and economic oers to develop a project, additionally, accompanying theoer for nancing, supported with a letter of intention or other analogous documents issued byinternationally recognized nancial institutions.

Strategic Alliances: Includes several associative modalities between public or mixed Ecuadorianenterprises, for the development of specic Projects. Included in this are alternatives such as associa-tion contracts, joint venture, creation of subsidiaries and other analogous forms. The selection of partners or allies may be done on a direct basis for national or foreign public companies; and fornational or foreign private companies must be carried out through a special selection process. In anyevent, the associated Ecuadorian public enterprise must have a majority participation in such associa-tion.

Direct Investment: Refers to those modalities in which public or private institutions, dierent fromEcuadorian public entities, agree to develop in a direct manner, under their exclusive responsibilityand risk, a specic project. Included in this mechanism are alternatives such as concessions(electricity, mining, telecommunications), contracts for the provision of specic services(hydrocarbons), BOT, BOOT.

Contracting with international public companies: Ecuadorian legislation permits direct contrac-ting (commercial and for the development of Projects) with public or subsidiary enterprises of theInternational Community.

International Tenders

Tenders with nancing

Strategic Alliances

Direct Investment

Contracting with internatio-nal public companies

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MINNING

PROSPECTION STUDIES.- Consist of the reconnaissance of the eld in extensive areas, in which thefollowing are performed:

Geochemistry of sediments (taking samples in ravines and rivers).

Geochemistry of rocks, which is taking samples to determine the existence of minerals of economicinterest.

Geochemistry of soils, which is carried out in places that have obtained relevant results both in thegeochemistry of sediments, as in the geochemistry of soils.

Geophysical Survey (non-destructive studies that measure the electric current, magnetism or gravityof the earth’s crust) this is done in sectors or areas in which the geochemical study of the soil gavepositive results.

EXPLORATION STUDIES.- These studies are performed in areas in which Prospecting Studiesprovided positive results when dening an area with a geologic potential for the presence of minerals of an economic interest.

Consists in performing drillings at dierent depths with the recovery of cores (rock samples fromwithin the depths of the earth).

Exploration studies may consist of various phases, which will depend on the results of each one of them. For example: initial exploration, advanced exploration, etc.

TECHNICAL DEFINITIONS

(Glossary of Terms)

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TECHNICAL DEFINITIONS

(Glossary of Terms)

PROJECTS IN GENERAL

BASIC STUDIES.- This is a simplied description of the project; it denes the objective and the impor-tance of the project, presents a rst estimate of the activities and of the total investment that will berequired, as well as annual operational costs. If the projects are aimed to income generation, itconsiders the annual income besides the technical viability of the solution of alternatives, rejectingthe ones that are not technically feasible.

PRE-FEASIBILITY.- It is a study of a preliminary assessment to determine the alternatives of aninvestment project in terms of technical, nancial, economic, environmental, social and institutionalviability.

FEASIBILITY.- It starts from the dierent alternatives established in the Pre-feasibility study and nalviability is determined when the best alternative is chosen and upon this a study is made whichincludes a complete technical, nancial, environmental, institutional and economic assessment. TheFeasibility phase leads to the taking of a nal decision to execute the project.

BASIC ENGINEERING.- Once the Feasibility stage has been approved and the decision to executethe project has been taken, there is a conceptual design where the technical requirements that theprojects needs are established. In this stage there is a ne-tuning of costs and an execution plan of theinvestment project is drafted.

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FOCAL POINT

Direction of International Management • Ministerio Coordinador de los Sectores Estratégicos

• [email protected] • Telephone: (593-2) 2260670

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P R O J E C T S

ELECTRIC

Increase the coverage of electric services, assure reliability and quality of the service aswell as self-suciency; promote the ecient and rational use of energy and developregional energy integration, are some of the objectives that Ecuador strives to reach

through the formulation and promotion of an eective policy in the electric sector andthe management of Projects.



E L E

C T R I C P R O J E C T S

GOVERNING ENTITY Ministry of Electricity and Renewable EnergySCOPE AND LOCATION Provinces of Pichincha and Imbabura

Name of the Project | HYDROELECTRIC PROJECT TORTUGO

DESCRIPTION:Construction of the Hydroelectric Project Tortugo which consists of a gravity type concrete dam with aheight of 68 m, and installed capacity of 201 MW to generate 863 GWh/year.

LEVEL OF STUDIES Engineering and Final Designs.

Technical Data

FINANCING REQUIRED USD 375´000.000

Financial Indicators

CONTRACTING METHOD Direct Investment.

Tenders with nancing.Contracting with international public companies.

E L E


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Name of the Project | HYDROELECTRIC PROJECT CHESPI

DESCRIPTION:Construction of the Hydroelectric Project Chespí, which consists of a dome type which consists of a gravitytype concrete dam with a height of 68 m, an installed capacity of 460 MW to generate 2.000 GWh/year.


Technical Data



CONTRACTING METHOD Direct Investment.Tenders with nancing.Contracting with international public companies.

E L E


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Name of the Project | HYDROELECTRIC PROJECT CHONTAL

DESCRIPTION:Construction of the Hydroelectric Project Chontal, which consists of a gravity type concrete dam with aheight of 120 m, an installed capacity of 184 MW to generate 1.034,4 GWh/year.


Technical Data





E L E


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Name of the Project | HYDROELECTRIC PROJECT CHIRAPI

DESCRIPTION:Construction of the HIDROELECTRIC PROJECT Chirapi that will use the water from the Chontal Project, and iscomprised by an interconnection chamber with an installed capacity of 169,2 MW to generate 968,4GWh/year.


Technical Data




E L E


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GOVERNING ENTITY Ministry of Electricity and Renewable EnergySCOPE AND LOCATION Province of Morona Santiago

Name of the Project | HYDROELECTRIC PROJECT RÍO ZAMORA

DESCRIPTION:System with various waterfalls and the advantageous use of the Zamora River. At present, the integral studyof the basin is being developed to comprise a possible generation of 4.000 MW.

LEVEL OF STUDIES Basic Studies.

Technical Data

FINANCING REQUIRED UNDETERMINED.



E L E C T R I C P R O J E C T S

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GOVERNING ENTITY Ministry of Electricity and Renewable EnergySCOPE AND LOCATION Provinces of Azuay and Morona Santiago

Name of the Project | HYDROELECTRIC PROJECT CARDENILLO

DESCRIPTION:The Paute Cardenillo power plant corresponds to the fourth stage of the Integral Paute Complex , that usesthe waters that have passed through the turbines of the Paute-Sopladora power station and is located on theright margin of the Paute River, between elevation contours 925 and 525 a.s.l., approximately. Power rating400 MW.


Technical Data

CONTRACTING METHOD Strategic Alliances.International Tenders.Contracting with international public companies.

FINANCING REQUIRED USD 507’000.000



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GOVERNING ENTITY Ministry of Electricity and Renewable EnergySCOPE AND LOCATION Province of Napo

Name of the Project| HYDROELECTRIC PROJECT BAEZA

DESCRIPTION:Construction of the Hydroelectric Project Baeza of 50 MW that is planned to generate 317,5 GWh/year and isdirectly related to the Quijos Project.

LEVEL OF STUDIES Pre-feasibility studies.

Technical Data






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GOVERNING ENTITY Ministry of Electricity and Renewable EnergySCOPE AND LOCATION Province of Cotopaxi

Name of the Project | HYDROELECTRIC PROJECT ANGAMARCA SINDE

DESCRIPTION:Construction of the Hydroelectric Project Angamarca Sinde of 32,10 MW that is expected will generate 182GW/year by means of the vertical axis Francis type turbines


Technical Data






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GOVERNING ENTITY Ministry of Electricity and Renewable EnergySCOPE AND LOCATION Province of Napo

Name of the Project | GEOTHERMAL PROJECT CHACANA

DESCRIPTION:This constitutes the central part of the volcanic complex Plio-Cuaternario Chacana, of the followingdimensions: 65 km (North-South) by 25 km (East-West). Elevations uctuate between 3.200 and 4.500 a.s.l.Potential to be developed up to 438 MW.


Technical Data




Tenders with nancing.Contracting with international public companies.Strategic Alliances.


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GOVERNING ENTITY Ministry of Electricity and Renewable EnergySCOPE AND LOCATION Province of Imbabura

Name of the Project | GEOTHERMAL PROJECT CHACHIMBIRO

DESCRIPTION:It forms a part of the Chachimbiro volcanic complex. Potential to be developed up to 130 MW.


Technical Data

CONTRACTING METHOD Strategic Alliances.

International Tenders.Contracting with international public companies.




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GOVERNING ENTITY Ministry of Electricity and Renewable EnergySCOPE AND LOCATION Province of Carchi

Name of the Project | GEOTHERMAL PROJECT CHALPATÁN

DESCRIPTION:Chalpatán is a 5 km in diameter crater basin, located some 20 km southeast of the city of Tulcan. It isestimated that its age corresponds to the early Pleistocene. Potential to be developed must still bedetermined.

LEVEL OF STUDIES Basic and Prospecting Studies.

Technical Data




Tenders with nancing.Contracting with international public companies.Strategic Alliances.

E L

E C T R I C P R O J E C T S

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GOVERNING ENTITY Ministry of Electricity and Renewable EnergySCOPE AND LOCATION Province of Carchi (Ecuador)Department of Nariño (Colombia)

Name of the Project | GEOTHERMAL PROJECT TUFIÑO - CHILES - CERRO NEGRO

DESCRIPTION:By-national project with Colombia, with potential to be developed in stages up to 114 MW.

LEVEL OF STUDIES Basic and Prospecting Studies.

Technical Data


Tenders with nancing.



This project is under the framework of the By-national Agenda Colombia - Ecuador.

E L


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GOVERNING ENTITY Ministry of Electricity and Renewable EnergySCOPE AND LOCATION Everywhere in Ecuador

Name of the Project | PLAN FOR THE REDUCTION OF ENERGY LOSSES - PLANREP - 2012*

DESCRIPTION:Implementation and standardization of measurement systems. Change from open networks to pre-assembled(antitheft). Implementation of a plan of technical and non-technical losses in distribution networks. Monitoring,revision and control of measuring systems for clients. Change of voltage level in primary elements. Acquisitionand change of electro-mechanic metering to electronic systems.


Technical Data

CONTRACTING METHOD International Tenders.




*According to the business plan.

E L


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GOVERNING ENTITY Ministry of Electricity and Renewable EnergySCOPE AND LOCATION Everywhere in Ecuador

Name of the Project | PLAN FOR THE IMPROVEMENT OF ELECTRIC DISTRIBUTIONSYSTEMS PMD 2012 *

DESCRIPTION:Implementation of Projects designed to improve the quality level of electric services, increase coverage andassist in the reduction of technical losses in the electric distribution systems in the following functionalstages:LS: Sub-transmission Lines SE: Sub-stationsCP: Primary Circuits TD: Distribution TransformersRS: Secondary Networks RD: Distribution NetworksAC: Service Connections ME: MetersIG: General Investments.


Technical Data

CONTRACTING METHOD International Tenders.Tenders with nancing.Contracting with international public companies.



*According to the business plan.

E L


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GOVERNING ENTITY Ministry of Electricity and Renewable EnergySCOPE AND LOCATION Provinces of Sucumbíos, Pichincha, Los Ríos,Guayas and Azuay.

Name of the Project | 500 kV TRANSMISSION LINE SYSTEM PROJECT

DESCRIPTION:System of four sub-stations of 500 kV - 230 kV each in Coca- Pifo – Yaguachi - Sopladora, its extension isestimated in 750 km of 500 kV line.

LEVEL OF STUDIES Conguration Studies (2010).Final design of the system (2012).

Technical Data




Tenders with nancing.

E L


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Project Summary



oject Su a y

NAMELOCATION -PROVINCE

TYPE OF PROJECTSTARTING DATE OF

CONSTRUCTION(Estimated)

AMOUNT OFINVESTMENT

ESTIMATED AMOUNTOF EQUIVALENT

TON OF CO2 (MDL)

La Merced deJondachi

Napo Hydroelectric January 2013 $ 38’270.000 67.510 tCo

Baeza Napo Hydroelectric October 2013 $ 89’900.000 176.560 tCoAngamarca Sinde Cotopaxi Hydroelectric March 2013 $ 51’900.000 101.210 tCo

Tortugo Pichincha, Imbabura Hydroelectric February 2013 $ 375’000.000 479.910 tCo

Chespi Pichincha, Imbabura Hydroelectric April 2013 $ 755’000.000 1’112.200 tCo

Chontal Pichincha, Imbabura Hydroelectric August 2012 $ 425’800.000 575.230 tCo

Chirapi Pichincha, Imbabura Hydroelectric August 2012 $ 362’400.000 538.530 tCo

Río Zamora Morona Santiago Hydroelectric January 2015 $ 2.760’000.000 4’092.900 tCoCardenillo Morona Santiago Hydroelectric January 2014 $ 507’000.000 1’279.000 tCo

Chacana Napo Geothermic January 2015 $ 185’000.000 254.800 tCo

Chachimbiro Imbabura Geothermic January 2015 $ 162’500.000 254.800 tCo

Chalpatán Carchi Geothermic January 2015 $ 175’000.000 254.800 tCo

Tuño – Chiles – CerroNegro

Carchi – Nariño Geothermic January 2015 $ 150’000.000 254.800 tCo

PlanRep 2012 Everywhere in Ecuador Distribution 2012 $ 126’495.000----------------------------

PMD 2012 Everywhere in Ecuador Distribution 2012 $ 348’424.050----------------------------

Sistema detransmisión Línea de500 kV

Sucumbíos, Pichincha,Los Ríos, Guayas andAzuay.

Distribution January 2013 $ 450’000.000 ----------------------------

TOTAL $ 6.962’689.050

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S



GOVERNING ENTITY National Secretariat for WaterSCOPE AND LOCATION Hydrographic Demarcation ofGuayas(Province of Guayas)

Name of the Project | FLOOD CONTROL IN MILAGRO

DESCRIPTION:Construction of an infrastructure to evacuate waters which are a product of the overowing of the Milagroand its tributaries, the Chirijo and Berlín inlets, during extreme ooding that aect the city of Milagro. Provideirrigation water during times of draught.

LEVEL OF STUDIES Feasibility Stuides.Technical Data

CONTRACTING METHOD Tenders with nancing.Contracting with international public companies.



W A T E R P R O J E C T S

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T S



GOVERNING ENTITY National Secretariat for Water

SCOPE AND LOCATION Hydrographic Demarcation of Guayas(Province of Guayas)

Name of the Project | NUEVO PEDRO CARBO

DESCRIPTION:Diversion of waters from the Daule River to the parishes of Valle de La Virgen, Sabanilla, Cascajal, Cascol,Guale, Lascano, Las Cañas, Bachillero and Las Saibas for the agricultural development of 25.000 hectareslocated at a middle level of the sub-basins of the Carbo and Colimes Rivers.


Technical Data




W A T E R P R O J E C T

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T S



GOVERNING ENTITY National Secretariat for WaterSCOPE AND LOCATION Hydrographic Demarcation of Guayas

(Provinces of Guayas and Los Ríos)

Name of the Project | WATER DEVELOPMENT AND CONTROL PLAN FOR THE PROVINCE OF LOS RÍOS

DESCRIPTION:Construction of three inter-basin transfer canals for irrigation water for the south western, central and southregions de la province of Los Ríos which are: Quevedo Chojampe, Quevedo Puebloviejo, Calabi, Lechugal,Aguacatal and Puebloviejo.

LEVEL OF STUDIES Basic Studies.Technical Data





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T S




SCOPE AND LOCATION Hydrographic Demarcation ofGuayas(Provinces of Guayas and Santa Elena)

Name of he Project | SHEATHING OF THE CERRO – AZUL TUNNEL

DESCRIPTION:Sheathing of the Cerro Azul tunnel, in a length of 7 km, thus guaranteeing its stability throughout the entiresection, providing the appropriate conditions for the stability of the inter-basin transfer system Daule – SantaElena in order to insure the supply of human consumption and irrigation waters for the province of SantaElena and several parishes in Guayas.

LEVEL OF STUDIES Feasibility Stuides.

Technical Data





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C T S




SCOPE AND LOCATION Hydrographic Demarcation of Pastaza(Province of Pastaza)

Name of the Project | MULTI-PURPOSE PROJECT FOR CHALUPAS

DESCRIPTION:Construction of the infrastructure for the inter-basin transfer of the waters from the Cutuchi River fromnearby basins, to satisfy the needs of human, irrigation and electric generation water.


Technical Data




W A T E R P R O J E C

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C T S




SCOPE AND LOCATION Hydrographic Demarcation of Mira(Provinces of Carchi and Imbabura)

Name of the Project | MULTI-PURPOSE PROJECT FOR PURUHANTA – PIMAMPIRO – YAHUARCOCHA

DESCRIPTION:Construction of the infrastructure for the supply of water for human consumption of the inhabitants of thecommunities of Ibarra, Ambuqui, Pimampiro, Carpuela, Juncal, Chota y San Alfonso and irrigation destinedto agricultural production.


Technical Data




W A T E R P R O J E C

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C T S




SCOPE AND LOCATION Hydrographic Demarcation of Puyango(Province of Loja)

Name of the Project | MULTI-PURPOSE PROJECT FOR MATALA CASA VIEJA NAMBACOLA

DESCRIPTION:Construction of the infrastructure necessary to provide drinking water, irrigation and hydroelectricgeneration. Construction includes the structure for the impounding of water from the Catamayo River thatpermits the derivation of the necessary ow to be directed to the turbo-pumps system, construction of thewater storage and distribution systems for irrigation and human consumption, as well as the construction of a Mini-Station for Hydroelectric Energy of 3.4 MW.


Technical Data




W A T E R P R O J E

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E C T S




SCOPE AND LOCATION Hydrographic Demarcation of Manabí (Province of Manabí)

Name of the Project | MULTI-PURPOSE PROJECT FOR JAMA

DESCRIPTION:Construction of a dam in the upper part of the basin of the Jama River to provide water for humanconsumption to the populations of the Jama canton and Eloy Alfaro. Irrigation water for agriculturalproduction in the high and low zones of the valley of the Jama River, as well as transferring water from thebasin of the Briceño, Don Juan and San Ramón Rivers to irrigate 6.600 hectares. Hydroelectric generation of 10 MW.


Technical Data




W A T E R P R O J E

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E C T S



GOVERNING ENTITY National Secretariat for WaterSCOPE AND LOCATION Hydrographic Demarcation of Puyango

(Province of Loja)

Name of the Project | REDIRECTING OF THE RIVERS CATAMAYO AND VILCABAMBA

DESCRIPTION:Construction of 30 km of civil works for redirecting the two margins of the Catamayo and Vilcabamba Rivers,complementary works of earth dams with rock ll for protection, as well as the impounding and constructionof the water intakes of the irrigation canals and their derivations.

LEVEL OF STUDIES Engineering and Final DesignsTechnical Data




W A T E R P R O J

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J E C T S



GOVERNING ENTITY National Secretariat for WaterSCOPE AND LOCATION Hydrographic Demarcation of Santiago

(Province of Azuay)

Name of the Project | MULTI-PURPOSE PROJECT FOR PUMA

DESCRIPTION:Construction of the infrastructure necessary to provide drinking water, irrigation and hydroelectricgeneration. The construction of principal works includes a dam on the Ningar River for the regulation of theow of this river, as well as the respective works for impounding in 12 additional sources during the rst 24km of conduction. Construction of a siphon of approximately 1.6 km and two tunnels with a length of 3 km.The total scope of the project is 50 km. Hydroelectric generation is estimated at 2 MW.

LEVEL OF STUDIES Pre-feasibility studies.Technical Data




W A T E R P R O J

42

Project Summary




DEMARCATIONSTARTING DATE OF CONSTRUCTION(Estimated)

AMOUNT OFINVESTMENT

Flood Control inMilagro

Guayas Hydrographic Demarcation of Guayas May 2013 $ 154’570.484

Nuevo Pedro Carbo Guayas Hydrographic Demarcation of Guayas October 2013 $ 154’181.056

Water Developmentand ControlProv. Los Ríos

Guayas –Los Ríos Hydrographic Demarcation of Guayas July 2013 $ 350’000.000

Sheathing of the CerroAzul Tunnel

Guayas Hydrographic Demarcation of Guayas October 2012 $ 20’221.839

Multiple PurposeChalupas

Pastaza Hydrographic Demarcation of Pastaza May 2013 $ 270’514.000

Multiple PurposeTumbabiro

Carchi Hydrographic Demarcation of Mira June 2013 $ 180’529.516

Multiple PurposePuruhanta– Pimampiro –Yaguarcocha

Carchi Hydrographic Demarcation of Mira June 2013 $ 75’000.000

Multiple Purpose MatalaCasa Vieja Nambacola

Loja Hydrographic Demarcation of Puyango April 2013 $ 20’000.000

Multiple Purpose Puma Azuay Hydrographic Demarcation of Santiago May 2 013 $ 45’000.000

Multiple Purpose Jama Manabí Hydrographic Demarcation of Manabí October 2013 $ 213’133.251

Re-channeling of theCatamayo and Vilcabamba

Rivers

Loja Hydrographic Demarcation of Puyango 2012 $ 12’000.000

TOTAL $ 1.495’150.146

45



P R O J E C T S

MINING

Ecuador is a country that has a great potential for growth in the exploration anddevelopment of Deposits and minerals. The objective of this sector is to generate asustainable development with public policies that facilitate, norm and promoteinvestments in extractive activities for Ecuador. The mining sector represents animportant source of resources for the development of the nation, as a leveraging factorfor the generation of employment, and a factor for a balanced local and regionaldevelopment.

O J E C T S



GOVERNING ENTITY National Mining Company EP

SCOPE AND LOCATION Province of Cañar

LEVEL OF STUDIES Prospecting Studies.Determination of anomalous zones

Name of the Project | PILZHUM

Technical Data

DESCRIPTION:Geologic exploration, Pre-feasibility and Feasibility Studies.The mineralization that exists is an argentiferous galena rich in silver, gold, lead and zinc. There exist miningworks with approximately 600 m of galleries; geologic resources 500.000 ounces of silver.




M I N I N G P R O

47

O J E C T S




SCOPE AND LOCATION Province of Azuay

LEVEL OF STUDIES Prospecting Studies.Determination de anomalous zones


Name of the Project | ANGAS

Technical Data

DESCRIPTION:Geologic exploration, Pre-feasibility studies and Feasibility.Prospect located within three areas of approximately 4.500 hectares each, a high sulfur content system witha potential for gold and silver. Geological Resources of 300.000 ounces of gold.



M I N I N G P R O

48

O J E C T S




SCOPE AND LOCATION Province of Bolivar

LEVEL OF STUDIES Basic exploration studies in anomalous zones.

Name of the Project| SAN MIGUEL

Technical Data

DESCRIPTION:Geologic exploration, Pre-feasibility studies and Feasibility.Sub-divided into six anomalous zones and within six areas of approximately 5.000 hectares each,mineralization and alteration related to porphyries of copper– molybdenum with a geologic potential of 500 MT/0,6% of copper.




M I N I N G P R O

49

R O J E C T S



GOVERNING ENTITY National Mining Company EPSCOPE AND LOCATION Province of Zamora Chinchipe


Name of the Project | CORDILLERA DE NANGUIPA (MINA REAL)

Technical Data

DESCRIPTION:Advanced Geologic Exploration, Pre-feasibility and Feasibility.Prospect and explore for copper, molybdenum and gold in the mining concession in the Zamora ChinchipeProvince located in the southeast of the national territory.




M I N I N G P R

50



R O J E C T S



GOVERNING ENTITY National Mining Company EPSCOPE AND LOCATION Province of Esmeraldas


Name of the Project | LA TOLA NORTE

Technical Data

DESCRIPTION:Geologic exploration, Pre-feasibility and Feasibility studies.Evaluate and certify the level of proven and probable reserves in the ferrous sand deposits (titanium –magnetiferous) existing in the coastal zone of the Esmeraldas Province, in order to reach the level of Pre-feasibility, conceptual designs for exploitation and the design of the iron and steel industry.




M I N I N G P

52

P R O J E C T S



GOVERNING ENTITY National Mining Company EPSCOPE AND LOCATION Province of Bolívar and Los Ríos

Name of the Project | EL TORNEADO



Technical Data



DESCRIPTION:Geologic exploration, Pre-feasibility studies and Feasibility.Prospect and explore for copper, molybdenum and gold in the mining concession of El Torneado located inthe provinces of Bolívar and Los Ríos which are in the central eastern part of the national territory.

M I N I N G P

53

Project Summary



Project Summary

NAMELOCATION -

PROVINCEDEPOSIT

BEGINNING OFOPERATIONS(Estimated)

AMOUNT OF INVESTMENT

Pilzhum Cañar 2012 UNDETERMINED

Angas Azuay 2012 UNDETERMINED

San Miguel Bolívar 2012 UNDETERMINED

Cordillera de Nanguipa Zamora Chinchipe 2012 UNDETERMINED

Telimbela Bolívar 2012 UNDETERMINED

La Tola Norte Esmeraldas 2012 UNDETERMINED

El Torneado Bolívar and Los Ríos

Gold, silver, plomo and zinc

Gold and silver

Copper

Gold, copper and molybdenum

Copper and molybdenum

Arenas Ferrosas

Gold, copper and molybdenum 2012 UNDETERMINED

TOTAL UNDETERMINED

54

P R O J E C T S



GOVERNING ENTITY Mining ViceministryFINANCING REQUIRED UNDETERMINED.

Name of the Project | FIRST MINING TENDER


POTENCIALG_M

FGMINTRUSIVE

FGMVOLCANIC

FGMMETAMORPHIC

ALLUVIAL ENVIRONMENTMETALIC

N° EVIDENCES (OCCUR)MM

LEVEL OFSTUDIES

La Sofía Province of Sucumbíos Medium Medium - High Medium Medium - Low Partially Favorable

Partially Favorable

6 Prospection

Magdalena Province of Imbabura High Medium Medium - High Medium - Low 0 Prospection

Río Jalligua Province of Cotopaxi High Medium - Low High Medium - Low Partially Favorable 0 Prospection

Balzapamba Province of Bolívar High Medium - High Medium Medium - Low Not Favorable 10 Prospection

AlaoProvincia of Chimborazo Medium - High Medium - Low Medium Medium Partially Favorable 7 Prospection

Purubin Province of Cañar High Medium - High Medium Medium - Low Not Favorable 10 Prospection

San Miguelde Cuyes

Provinces of MoronaSantiagoandAzuay

Medium - High Medium Medium Medium - High Totally Favorable 5 Prospection

Paccha Province of El Oro High Medium - High Medium Medium - Low Partially Favorable 6 Prospection

YacuambiProvince of ZamoraChinchipe

High Medium - Low Medium - High Medium - Low Partially Favorable 1 Prospection

Namirez AltoProvince of ZamoraChinchipe

High High Medium - Low Medium - Low Not Favorable 2 Prospection

Note: All existing minig rights inside de mining tender will be entirely respected.

M I N I N G

55

P R O J E C T S



Name of the Project | FIRST MINING TENDER Projects Location

La Sofía

Magdalena

Río Jalligua

Balzapamba

Alao

Purubin

San Miguel de Cuyes

Paccha

Yacuambi

Namirez Alto

M I N I N G

56



P R O J E C T S

OIL

Ecuador strives to eciently exploit its energy resources by promoting the explorationof new oil and gas elds, as well as investment in the rening of crudes, with theobjective of guaranteeing autonomy in the consumption of derivates.

L P R O J E C T S



LEVEL OF STUDIES Certication of Reserves (Ryder Scott)Basic Engineering studies (Mustang Engineering International)

Technical Data




GOVERNING ENTITY Petroamazonas EPSCOPE AND LOCATION Province of Francisco de Orellana

Name of the Project | EXPLORATION AND PRODUCTION OF HYDROCARBONS IN THEAPAIKA AND NENKE FIELDS OF BLOCK 31

DESCRIPTION:Produce approximately 30,000 bppd, of 15 to 17 °API, incorporating 60 MMBLS.

O I L

58

L P R O J E C T S



LEVEL OF STUDIES Studies: geological, geophysical, seismic 2D, andcalculation of reserves in the Charapa eld.

Technical Data

CONTRACTING METHOD Direct Investment.Contracting with international public companies.



GOVERNING ENTITY Secretariat for HydrocarbonsSCOPE AND LOCATION Province of Sucumbios.

Name of the Project | EXPLORATION AND PRODUCTION OF THE CHARAPA BLOCK

DESCRIPTION:Exploration and development of non-drilled structure in the northern sector of the Eastern Basin of Ecuador.In this area there are wells in production and prospects to be developed.

O I

59

I L P R O J E C T S



LEVEL OF STUDIES Studies: geological, geophysical, seismic 2D, andcalculation of reserves.

Technical Data




GOVERNING ENTITY EP PetroecuadorSCOPE AND LOCATION Province of Sucumbíos

Name of the Project | EXPLORATION AND PRODUCTION OF THE LAGO AGRIO BLOCK

DESCRIPTION:Exploration and development of the Lago Agrio eld, with the possibility of increasing by 40 MM thehydrocarbon reserves.

O I

60

I L P R O J E C T S



LEVEL OF STUDIES Studies: geological, geophysical, seismic 2D, drilling of wells.

Technical Data

CONTRACTING METHOD Direct Investment.International Tenders.Contracting with international public companies.



GOVERNING ENTITY Secretariat for HydrocarbonsSCOPE AND LOCATION South-East of Ecuador

(Provinces of Morona Santiago, Pastaza and

part of Napo).

Name of the Project | EXPLORATION AND PRODUCTION IN THE SOUTH-EAST OF ECUADOR

DESCRIPTION:Exploration and development of 21 blocks. Possibility of nding 690 MMBLS of POES, 5 blocks have seismic2D data, and only one block has wells.

O

61

O I L P R O J E C T S



LEVEL OF STUDIES Studies: geological, geophysical, seismic 2D, and calculation of reserves of the Pacoa Field.Seismic interpretations of the block inland as well as o-shore.

Technical Data




GOVERNING ENTITY EP PetroecuadorSCOPE AND LOCATION Province of Santa Elena

Name of the Project | EXPLORATION AND PRODUCTION OF BLOCK 01 – PACOA FIELD

DESCRIPTION:Exploration in Block 1 has a total area of 400,000 Hectares (inland and o-shore).

O

62




LEVEL OF STUDIES There are 1.593,87 km of seismic 3D, an evaluation has been made of reservoirs,correlations with existing wells, AVO studies, seismic stratigraphy and theidentication of some 72 prospects.

Technical Data




GOVERNING ENTITY EP PetroecuadorSCOPE AND LOCATION Province of Guayas

Name of the Project | EXPLORATION AND PRODUCTION OF BLOCK 05 – CUENCA PROGRESO

DESCRIPTION:Exploration of Block 05, Progreso basin, located on the Ecuadorian Coast, the POES in 4 structures is of 221MMBLS.

O

63




LEVEL OF STUDIES Seismic 2D studies, denition of potential areas for theaccumulation of methane hydrates.

Technical Data




GOVERNING ENTITY EP PetroecuadorSCOPE AND LOCATION O-Shore

Name of the Project | OFF COAST EXPLORATION: METHANE HYDRATES

DESCRIPTION:Investigation to ratify the existence of methane hydrates. A preliminary evaluation carried out based onseismic information determines an area of 5.381 km with methane hydrates, calculating the followingresources:Optimistic scenario: 779,11Tcf (trillion cubic feet), and a conservative scenario: 112,19Tcf.In the event of ratifying the existence of these resources of gas hydrates, it will be convenient to develop theadequate technology for exploitation and development in the generation of energy.

O

64




LEVEL OF STUDIES FeasibilityBasic Engineering

Technical Data

CONTRACTING METHOD Tenders with nancingInternational TendersContracting with international public companies.



GOVERNING ENTITY EP PetroecuadorSCOPE AND LOCATION Provinces of Guayas and Azuay

Name of the Project | PIPELINE PASCUALES - CUENCA

DESCRIPTION:Construction of a multiple-product pipeline of 210 km, from the terminal of Pascuales in the province of Guayas to the terminal of Chaullabamba in Cuenca, Azuay Province. Pumping stations in Pascuales, ElChorrillo, La Troncal and the necessary intermediate stations to be determined in the hydraulic design of themultiple-product pipeline.

65



Project Summary




TYPE OF PROJECTSTARTING DATE OFCONSTRUCTION (Estimated)

AMOUNT OFINVESTMENT

Exploration and productionof hydrocarbons of theApaika and Nenke elds

of Block 31

Orellana Exploitation of crude oil 2012 $ 500’000.000

Exploration and productionof the Charapa Block

Sucumbíos Exploitation of crude oil 2012

Exploration and productionof the Lago Agrio Block

Sucumbíos Exploitation of crude oil 2012

Exploration and productionin the Southeast of Ecuador

Southeast Ecuador Exploitation of crude oil 2012

Exploration and productionof Block 01 - Pacoa Field

Santa Elena Exploitation of crude oil 2012

Exploration and productionof Block 05 - Cuenca Progreso

Guayas Exploitation of crude oil 2012

O-shore Exploration:Methane Hydrates

Ecuadorian Coast Exploration 2012

UNDETERMINED

UNDETERMINED

UNDETERMINED

UNDETERMINED

UNDETERMINED

UNDETERMINED

Pipeline Pascuales - Cuenca Guayas y Azuay Crude oil transport 2012 $ 280’000.000

Renería del Pacíco Manabí Rening 2012 $ 12.800’000.000

TOTAL $ 13.580’000.000

67



P R O J E C T S

TELECOMMUNICATIONS

By means of the creation of the Ministry of Telecommunications and of the Society of Information, on August 13, 2009, the State recognized the need of guaranteeing to allEcuadorians, an equal access to the Technologies of Information and Communication,taking over the responsibility of assuring the creation of a solid base for the transition of our country towards the society of information.

T I O N S P R O J E C T S



GOVERNING ENTITY Ministry of Telecommunications and theSociety of Information

SCOPE AND LOCATION Everywhere in Ecuador

Name of the Project | | TERRESTRIAL DIGITAL TELEVISION (TDT)

DESCRIPTION:Implementation of the national network RTVECUADOR with the standard of terrestrial digital television

LEVEL OF STUDIES Feasibility Studies

Technical Data




T E L E C O M M U N

I C A T

69

T I O N S P R O J E C T S



GOVERNING ENTITY Ministry of Telecommunications and theSociety of Information

SCOPE AND LOCATION City of Quito

Name of the Project | NATIONAL CENTER FOR PUBLIC DATA

DESCRIPTION:Implementation of the National Center for Public Data, principal and alternate, that includes civil andtechnological infrastructure, that will permit the Ecuadorian State have available a National Center forPublic Data, that will provide technological information and communication services in a standardizedmanner, guaranteeing their eciency, condentiality, integrity, availability, compliance and reliability;optimizing the technological investment of the State and facilitating the implementation of electronicgovernment.

LEVEL OF STUDIES Pre-feasibility Study.Technical Data

CONTRACTING METHOD Direct Investment



T E L E C O M M U N

I C A T

70



Project Summary


DESCRIPTIONSTARTING DATE OF

CONSTRUCTION(Estimated)

AMOUNT OF INVESTMENT

Terrestrial DigitalTelevision

Quito, Guayaquiland Cuenca

RTVECUADOR NationalNetwork

July 2012 $ 23’000.000

National Center forPublic Data

QuitoNational Centerfor Public Data

March 2012$ 70’000.000

TOTAL$ 93‘ 000.000

71

Documents

Investment Catalogue 2012