Investment Catalogue in Strategic Sectors 2015 - 2017

Investing in Ecuador is investing for the future.

Investment cataloguein strategic sectors2015 - 2017

REPÚBLICA DEL ECUADOR

INVESTMENT CATALOGUEIN STRATEGIC SECTORS 2015-2017

Rafael Poveda BonillaMinister Coordinator of Strategic Sectors

Pedro MerizaldeMinister of Non-Renewable Natural Resources

Esteban Albornoz Minister of Electricity and Renewable Energy

Augusto Espín Minister of Telecommunications and Information Society

Walter Solís National Secretary for Water

Research and Production Ministry Coordinator of Strategic Sectors

Editing and proofreading:Andrea Zumárraga V. Translation:Sara Herrera C. Graphic Design:Diego Corrales D. Printing:Impresora Flores

2015

Investment cataloguein strategic sectors2015 - 2017

REPÚBLICA DEL ECUADOR

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1. INDEX 2

2. MESSAGE OF RAFAEL POVEDA, MINISTER COORDINATOR 3 OF STRATEGIC SECTORS

3. EXECUTIVE SUMMARY 4

4. MINISTRY COORDINATOR OF STRATEGIC SECTORS 5a. About usb. Strategic Objectives

5. INVEST IN ECUADOR 6a. Growing economyb. Safe and transparent country.c. Qualifiedhumantalentd. Consolidated infrastructure networks

6. SECURITY FOR FOREIGN INVESTMENT 8

7. INCENTIVES FOR PUBLIC AND PRIVATE FOREIGN INVESTMENT 9

8. OPPORTUNITY TO FINANCE PROJECTS IN ECUADOR 10

9. MODALITIES OF INVESTMENT 11

10. CONTACT 12

11. BASIC INDUSTRIES PROJECTS 13

12. MINING PROJECTS 25

13. PRIVATE MINING SECTOR PROJECTS 61

14. OIL SECTOR PROJECTS 74

15. BIOENERGETIC SECTOR PROJECTS 97

16. ELECTRIC PROJECTS 101

17. WATER SECTOR PROJECTS 116

18. TELECOMMUNICATION SECTOR PROJECTS 121

19. TECHNICAL DEFINITIONS 123

20. ABBREVIATIONS AND ACRONYMS 124

21. SYMBOLS AND MEASURES 125

INVESTMENT CATALOGUEIN STRATEGIC SECTORS 2015-2017

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Investment cataloguein Strategic Sectors 2015-2017

MESSAGE OF THE MINISTER COORDINATOROF STRATEGIC SECTORS

The Government of the Republic of Ecuador has promoted public policies focused on the responsible governance of our natural resources. With this judicious vision, the Ministry Coor-dinator of Strategic Sectors was created with the mission of directing the policies and actions of the institutions that make up hydrocarbons, mining, electricity, telecommunications, water, and environment sectors.

In these eight years, the government of President Rafael Correa Delgado has reached a sig-nificantgrowthinGDPof4.3%comparedto3.15%ofLatinAmericanaverage.Basedontheeffectivenessofpublicpolicies,investmentinstrategicprojectsandtheirimplementation,wehave focused on transforming our energy matrix as a means to change the production matrix. These investments are intended to generate a dynamic economy focused on knowledge and innovation,diversified,inclusiveandenvironmentallysustainable,producing93%ofenergygenerated fromrenewablesourcesby2017.This is low-costpureenergy thatwillbenefitproduction processes, enabling the good governance of our natural resources.

In our policy to change the production matrix, a fundamental pillar for the cross-sectional development of the country is the creation of basic industries to enable that our economy makes a quantitative leap, thus enhancing the use of our natural resources, adding value and improving the competitiveness of Ecuador. This will generate in the short, medium and long term, high potential for exports, imports substitution, and productive chaining.

With this background we present the updated edition of the 2015-2017 Investment Cat-alogue in Strategic Sectors, which includes investment opportunities, strategic alliances and other contracting modalities totaling more than 37,000 million dollars.

This document could not have been prepared without the valuable cooperation of all the MinistriesandaffiliatedinstitutionsthatruletheStrategicSectorsand,especially,withoutthepassion and drive of our employees.

Basedonproperstrategicplanning,efficientmanagementofour resources,anddecisivecommitment to transform the country, we invite you to join us in the near future. We are sure that, together, we are making true the dream that we started in 2007.

Rafael Poveda Bonilla Minister Coordinator of Strategic Sectors

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EXECUTIVE SUMMARY

The Investment Catalogue in Strategic Sectors 2015-2017 is an essential guide for national and international investorsandfinancial institutionsabout theopportunities forpublicandprivateinvestmentsthecountryoffers.

Projects are divided according to the sector they belong to: basic industries, mining, oil, bio-nergetic, electric, water and telecommunications.

In total, this cataloge includes 94 projects, both public and private, of which 83 are of the Ecuadorian state and require an investment of 37,153 million dollars.

Prepared by: Ministry Coordinator of Strategic Sectors

Nº. Projects Mumber of projects Investment amount (Millions of USD)1 Basic industries 10 11,9552 Mining 8 1333 Mining blocks for bidding 25 -4 Private mining 11 -5 Oil 21 17,0346 Bioenergy 2 1,1557 Electric 13 5,7868 Water 3 7279 Telecommunications 1 363 TOTAL 58 37,153

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MINISTRY COORDINATOR OF STRATEGIC SECTORS

ABOUT US The Constitution of the Republic of Ecuador considers that energy in all its forms, telecom-munications, non-renewable natural resources, hydrocarbons, biodiversity, genetic heritage, the radio electric spectrum and water, among others, constitute the strategic resources of the country.

We are the agency responsible for leading the policies and actions of the institutions that make up the Strategic Sectors; Ministries of Non-Renewable Natural Resources, Electricity and Renewable Energy, Telecommunications, Environment, and the National Secretariat for Water in order foster, through the coordinated, structuredandefficient implementationofplans,programsandsectoralandintersectoralprojects,andthroughinternationalfinancing,compliance with the National Plan for Development, improving the quality of life of citizens, andfosteringefficiencyintheinstitutions.

STRATEGIC OBJECTIVES

1. BESOVEREIGN,withself-sufficiencyinelectricgeneration,refiningofderivatives,accessto Information and Communication Technologies, and management of water resources.

2. BE PRODUCTIVE, providing quality in electric and telecommunications services, in the exploitation of hydrocarbons and minerals, and in the management of water resources.

3. BE INCLUSIVE, in the provision of public services accessible to all the population, and in the access to resources exploitation to the revenue produced by them.

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INVEST IN ECUADOR

GROWING ECONOMY

Ecuador has become one of the most dynamic economies in Latin America. Since 2007 has maintainedanaveragegrowth rateof4.3%1 and currently is the country with the highest publicinvestment,whichreaches11%oftheGDP2. Moreover, Ecuador is in the position 71 of the Global Competitiveness Index, the best position since 20073.

These successes have been achieved thanks to the political stability of the country that has made it possible to make proper decisions during the Government of the Citizen’s Revolution.

Ecuadorian currency is the USD dollar, which has contributed to make our country attractive forforeigninvestment.Inflationisofonlyonedigit,lowerthantheLatinAmericanaverage.

For more information, please visit: www.bce.fin.ec

SAFE AND TRANSPARENT COUNTRY

In order to strengthen a culture of honesty, ethics and quality in public administration, Ecuador has enacted laws that promote transparency in all contracting processes, which are carried out by the National Service for Public Acquisition (SERCOP in Spanish), through agile,efficientand technologicallyupdatedprocedureswhich facilitate thecontrolofbothcontracting entities and suppliers, and of the general public.

For more information, please visit: www.compraspublicas.gob.ec

Similarly, public companies can carry out contracting procedures through a special regime determinedby their specific lineof business and, in case theyhave subscribed strategicalliances, alliances or others documents of similar nature, such processes shall be determined by the agreement.

1 Source: Economic Commission for Latin America and the Caribbean, ECLAC, Preliminary Overview of the Economies of Latin America and the Caribbean 2014, updated at December 2014.

2CentralBankofEcuador,EconomicCommissionforLatinAmericaandtheCaribbean,ECLAC,basedonofficialfigures.2014dataforEcuadorcorresponds to the projection made by ECLAC, published in the Preliminary Overview of the Economies of Latin America and the Caribbean (updated at December 2014).

3 Source: World Economic Forum. The Global Competitiveness Index Historical Dataset © 2005 - 2014.

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QUALIFIED HUMAN TALENT

We are the country that has made the highest investment in post-secondary education in theentireregion,reaching2.12%oftheGDP4. From 2007 to 2014, young Ecuadorians are studying in the best universities of the world thanks to the delivery of 10, 482 scholarships5. To progress towards a social economy of knowledge, more than 1,000 million dollars will be invested in new universities, including Yachay, thus enhancing the capacity for innovation and research in the country.

The experience that Ecuadorian labor has on megaprojects of the strategic sectors makes it highly productive and with great capacity learning. Salaries of Ecuadorian workers are com-petitive in relation to other countries. Ecuador has one of the lowest unemployment rates in SouthAmericawhichisofabout4.5%.Ecuadorianpopulationis15,492,2646 and more than 44%ofthembelongtotheeconomicallyactivepopulationaffiliatedtosocialsecurity7, which reflectssocialcohesionandaccesstopublicservicesthatensureabetterqualityoflife.

For more information, please visit: www.ecuadorencifras.gob.ec

CONSOLIDATED INFRASTRUCTURE NETWORKS

Ecuador is strategically positioned in terms of infrastructure and logistics.

According to the Ministry of Transport and Public Works, Ecuador has a transportation infra-structure of 43,197 km of roads, this being the main means of communication in the country. Thanks to major public investment, two new airports have been built and the existing ones have been modernized.

The port system of Ecuador consists of seven public ports and ten private docks, specialized in general cargo and oil. On the other hand, river transport is consolidated through several navigable rivers, such as Guayas, Napo and Morona, some of which are part of to the Man-ta-Manaus inter-oceanic corridor.

In technological terms, Ecuador has installed 37,418 km of fiber optic8, representing an annualgrowthrateofInternetaccessof32.8%9,whichisreflectedinsophisticatedtelecom-munications services.

4 Source: National Secretariat of Higher Education, Science, Technology and Innovation (SENESCYT), based on information from the Ministry of Economy and Finance 2014, UIS-UNESCO and OECD 2011.

5Source:Senescyt,2007-2014.For2014,thecutoffdateisDecember31st.6 Source: National Institute of Statistics and Censuses7 Source: National Institute of Statistics and Censuses, National Survey on Urban and Rural Employment, Unemployment and Underemployment,

conducted in December. 8 Source: Ministry of Telecommunications and Information Society9 Source: Ministry of Telecommunications and Information Society

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SECURITY FOR FOREIGN INVESTMENT

(Organic Code of Production)

• Equality: of conditions and protection for national and foreign investments and investors.

• Property: protection of investors’ property (prohibition of all forms of forfeiture).

• Rights: liberty of production, marketing, import and export of goods and services, subject to the provisions of the Constitution, laws and regulations established by the current legislation.

• Taxation:national and foreign investments are subject to the same tax regime.

• Resolutionofconflict:investment contracts with foreign investors may include arbitration clauses to solve disputes that arise between government and investors. The dispute may be subject to international arbitration in accordance with the treaties signed by Ecuador.

• Investmentcontracts: provide stability on tax incentives and those stated in the Organic Code of Production. They may include contractual commitments that are necessary for the development of the new investment. Also, for investments above 100 million Dollars, investorscanbenefitfromtaxstabilityincentivesovertherateschargedtoincometax,taxon funds sent abroad, and other national direct taxes.

• Other:Freetransferofprofitsabroadandinvestment(uponcompletionoftaxobligationsand other responsibilities, as stated in legal regulations).

For more information, please visit: www.produccion.gob.ec

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INCENTIVES FOR FOREIGN PUBLIC AND PRIVATE INVESTMENT (Organic Code of Production)

• Complementarynature:Foreign investments shall have a role of direct complementarity in Strategic sectors and those prioritized in the economy that require investment and financing.

• DevelopmentandpromotionofStrategicSectors:- Delegate to private initiatives the investment in Strategic Sectors in those cases estab-

lished by the law for each sector.- New projects of private companies for the generation of electricity, under an equal

treatment in terms of mechanisms and conditions of guarantee and/or payment in the purchase of energy, than those applied to international transactions.

• Sectoralincentive:TotalexemptionofIncomeTaxforfiveyearsfornewinvestments,asof the operation phase in the sectors that contribute to the change of the energy matrix; strategic substitution of imports, promotion of exports and rural development. Their implementation in strategic sectors is limited to electric generation projects of renewable energies. - InthespecificcaseofBasicIndustries,IncomeTaxexemptionisfor10yearsasofthe

operation of the industry.

For more information, please visit: www.produccion.gob.ec

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OPPORTUNITY TO FINANCE PROJECTS IN ECUADOR

(Organic Code of Public Planning and Finances)

• FinancialAgreement:Financing may establish provisions related to the participation of national companies that provide the loans for the implementation of projects, under the condition that fundsaregranted inprofitable, advantageousorconcessional terms forEcuador.

• Guidelinesforbidding:

¿Whatdoweobservewhenevaluatinganoffer? - Companies with internationally recognized trajectory. -Aneconomicofferwithinmarketparameters. - Quality of materials, equipment and service. - Percentage of national aggregate.

Iftheofferincludesfinancing: -Firmofferforfinancingwithaninternationallyrecognizedlendingentity. -Percentageoffinancingovertheamountofinvestment. - Term of the credit. - Period of grace for payment of capital (at least equal to the period of time for the implementation of the project). - Interest rate (all in cost).

For more information, please visit: www.finanzas.gob.ec

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INVESTMENT MODALITIES

Projects in this catalogue, in accordance with each sector and Government policies, may be implementedthroughdifferentmodalities,namely:

PRIVATE

• DIRECT INVESTMENT: Refers to those modalities in which public or private insti-tutions, different fromEcuadorian public entities, agree to develop in a directmanner,undertheirsoleresponsibilityandrisk,aspecificproject.Inthismechanismareincludedalternatives such as concessions (electricity, mining, telecommunications), or contracts for theprovisionofspecificservices(hydrocarbons),BOT.

• STRATEGIC ALLIANCES: Includes several associative modalities between public or mixed Ecuadorian companies with national or foreign public or private companies for the implementation of projects. This modality includes alternatives such as partnership agreements, joint ventures, 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, in the case of national or foreign private companies, a special selection process should be conducted.

PUBLIC

• CONTRACTING WITH INTERNATIONAL PUBLIC COMPANIES: Ecuadorian laws permit direct contracting (commercial and for projects development) with public or subsidiary companies of the International Community.

• BIDDINGS WITH FINANCING: Selection processes in which several interested partiesare invited topresent their technical andeconomicoffers todevelopaproject,attachingalsothefinancingofferdulysupportedwithaletterofintentorotheranalogousdocumentsissuedbyinternationallyrecognizedfinancialinstitutions.

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CONTACT

Ministry Coordinator of Strategic [email protected]:(593-2)2260670

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Basic industries projects

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Basic industries are based on the responsible exploitation of natural resources (raw materials) that are transformed into intermediate products that constitute the chaining source to generate growth and added valueinintermediateandfinalindustries.

They constitute one of the pillars of the strategy to change the production matrix. Their implementation shall generate acceleration of the economic growth and shall be of support to overcome the major social challenges of the country.

Ecuador is seeking strategic partners to participate actively in the development of Ecuadorian industries. This development will take place under an investment modality that prioritizes foreign and/or local private partners, with potential involvement of the Government. Participation or ownership structures are open.

Regarding basic industries, two ways to participate in these projects have been considered:

1. Direct investment2. Strategic public-private alliances

Basic industries will be located in development poles that are leveraged through the optimization of logistics, transport and services infrastructure, already existing and/or being implemented. These industries have the following incentives:

• Stabilitythroughaninvestmentcontract

• ExemptionofIncomeTax(22%)forthefirst10yearsof industry operation

• Special Development Zone, ZEDE (Zona Especialde Desarrollo) with the following incentives:

· Exemption of Value Added Tax (12%) for theimport of goods for 20 years.

· Exemption of Customs Duties and Taxes for the import of goods for 20 years.

· ExemptionofTaxonFundssentAbroad(5%)forgoods and services for 20 years.

Source: Ministry Coordinator of Strategic Sectors

Basic industries

PROJECTS OF THE BASIC INDUSTRIES SECTOR

Nº. Project name Location Type Investment amount (millions of USD)1 Linear alkyl benzene (LAB) petrochemical plant Manabí industrial 5002 Polyethylene terephthalate (pet) petrochemical plant Manabí industrial 1,4003 Flat steel plant - direct reduced iron (DRI) Manabí industrial 1,1004 Flat steel plant - ferrous-titaniferous sand Manabí industrial 6755 Repair shipyard Guayas industrial 1806 ShipyardforOffshoreSupportVessel(OSV) Guayas industrial 1007 Large vessels shipyard Guayas industrial 7008 Aluminum smelting plant Manabí industrial 2,5009 Coppersmeltingandrefiningplant Manabí industrial 2,00010 Pulp plant Manabí industrial 2,800 TOTAL 11 955

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Construction of a petrochemical plant for the production of Linear Alkyl Benzene (LAB) with capacity to produce 115 kton/year using locally sourced

benzene produced in the “Refinería del Pacífico” refinery, and imported paraffin. Production shall supply local and regional markets.

PROJECT STATUS:

✓ Pre-feasibility study in process, prepared by Fluor. It is expected to be completed in March 2015

✓ Estimated operation start date: 2019.

COMPETITIVENESS:

• Theconstructionofthe“RefineríadelPacífico”(RDP)refinery,isstra-tegic for the country.

• LAB petrochemistry enables tochain products to the detergents market.

• Growingdemandintheregion.• Synergiesthankstotheinfrastruc-

ture developed for the Refinery(roads access, basic services, port, etc.).

ESTIMATED INVESTMENT:

500 MMUSD

MODALITY OF INVESTMENT:

• DirectInvestment.• Strategicpublic-privatalliances.

LinearAlkylBenzene(LAB) petrochemicalplant

BASI

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Guayaquil

Quito

C O L O M B I A

P E R U

0º

0 50 100 km

PA

CIF

IC

OC

EA

N

MANTA

El AromoRDP

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Construction of three petro-chemical plants for the pro-duction of Polyethylene Tere-phthalate (PET) with capacity to produce 450 kton/year using

locally sourced xylene produced in the “Refinería del Pacífico” refinery, and imported ethylene glycol. Production shall supply local and regional markets.

Polyethyleneterephthalate(PET) petrochemicalplant

PROJECT STATUS:

✓ Pre-feasibility study in process, prepared by Fluor. It is expected to be completed in March 2015.


COMPETITIVENESS:

• Theconstructionofthe“RefineríadelPacífico”(RDP)refineryisstra-tegic for the country.

• PET petrochemistry enables tochain products to the plastic bot-tles market.

• Growingdemandintheregion.• Synergiesthankstotheinfrastruc-

ture developed for the Refinery(roads access, basic services, port, etc.).


1,400 MMUSD


• DirectInvestment.• Strategicpublic-privatealliances.

Guayaquil

Quito

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PA

CIF

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OC

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MANTA

El AromoRDP

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Construction of a plant for the production of flat steel with capacity to produce 1,000 kton/year using natural gas and imported iron ore. Market focuses on covering the local demand (substituting imports

of hot rolled coils - HRC - and scrap), and the demand of the regional markets of Colombia, Peru and Chile. Other potential uses are in associated industries of cold rolled coils - CRC - and galvanized coils.

PROJECT STATUS:

✓ Pre-feasibility study completed by Idom on January 2015.


COMPETITIVENESS:

• Domestic demand justifies localproduction.

• Neighboringcountriesarenetim-portersofflatsteel.

• Competitive cost to replace im-ports of HRC and scrap.

• Potentialityofnaturalgasatcom-petitive prices.


1,100 MMUSD



Flatsteelplant–DirectReducedIron(DRI)

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DUST

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Quito

C O L O M B I A

P E R U

0º

0 50 100 km

PA

CIF

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OC

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GUAYAS

Posorja

Shipyard

Iron

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Construction of a plant for the production of flat steel with capacity to produce 500 kton/year using locally sourced

ferrous-titaniferous sand and imported coal. The plant will be focused on the substitution of hot rolled coil (HRC) imports.

Flatsteelplant-ferrous-titaniferoussand

PROJECT STATUS:

✓ Sand characterization study in process. It is expected to be com-pleted in February 2015.

✓ Pre-feasibility study should start with the Hatch Company in March 2015.


COMPETITIVENESS:

• Domestic demand justifies localproduction.

• Neighboringcountriesarenetim-portersofflatsteel.

• Competitivecost to replaceHRCimports.

• Projects for sand mining in TolaNorte and Mompiche under evaluation.

• Export potential for titanium andother byproducts to generate ad-ditional income.


675 MMUSD



Quito

C O L O M B I A

P E R U

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0 50 100 km

PA

CIF

IC

OC

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GUAYAS

Posorja

Shipyard

Flat steel

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Construction of a repair service shipyard with capacity for 80 repairs/year. This project leverages on the relocation of the Astinave shipyard, which is property of the Ecuadorian government. Market focuses on

covering the local demand and potentially serving other ships from the region. The shipyard will have additional potential to build 2 vessels/year of up to 120m length (e.g. fishing boats).

PROJECT STATUS:

✓ Pre-feasibility study completed by ISDEFE on January 2015.

✓ Estimated operation start date: January 2017.

COMPETITIVENESS:

• Shipyardsindustryisapriorityforthe government.

• Captive market for the repair ofEcuadorianflagvessels(theaver-age age of vessels is high, so fre-quent repairs are required).

• Strategic location on the Pacificcoast to absorb the demand of ships heading to the Panama Canal.

• Potential for vessels constructiontoreplacethelocalfleet(e.g.fish-ing vessels).


180 MMUSD

(Including repairs and construction)



Repairshipyard

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Quito

C O L O M B I A

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CIF

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GUAYAS

Posorja

Repairshipyard

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Construction of a shipyard for the construction of vessels of OSV class (e.g. PSVs, light platforms), with capacity of 2 units a year.

Initial focus is on the local market of offshore gas exploration with the potential of future exports to the regional market.

ShipyardforOffshoreSupportVessels(OSV)

PROJECT STATUS:


✓ Estimated operation start date: July 2017.

COMPETITIVENESS:

• Shipbuilding industry is a priorityfor the government.

• Estimated demand of 16 PSVsand 5-8 light platforms over the next8yearsfortheindustryofoff-shore natural gas exploration.

• Competitivelaborcosts.


100 MMUSD



Quito

C O L O M B I A

P E R U

0º

0 50 100 km

PA

CIF

IC

OC

EA

N

GUAYAS

Posorja

Shipyard

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Construction of a shipyard for the production of large vessels (e.g. Aframax type tankers), with capacity to produce 4 units/year. Initial focus is on the local market

of tankers for crude oil export with potential for future export and production of other vessels such as bulk carriers.

PROJECT STATUS:



COMPETITIVENESS:

• Shipbuilding industry is a priorityfor the government.

• Captive market for Ecuadorianvessels:

• Exportofcrudeoilisapriorityforthe country.

• Potentialdemandfor20tankersinthe next 6 years.

• Potential Ecuadorian demand tobuild bulk carriers.

• Competitivelaborcosts.


700 MMUSD



Largevesselsshipyard

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Quito

C O L O M B I A

P E R U

0º

0 50 100 km

PA

CIF

IC

OC

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N

GUAYAS

Posorja

Shipyard

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Construction of a plant for aluminum smelting with capacity to produce 500 kton/year of primary aluminum using imported

alumina. Production will be primarily focused on exports, especially to the region (South America).

Aluminumsmeltingplant

PROJECT STATUS:

✓ Pre-feasibility study is being pre-pared by Hatch. It is expected to be completed in May 2015.


COMPETITIVENESS:

• Specialrateforelectricitygenera-tion at low cost.

• SouthAmericawillbecomeanetimporter of primary aluminum in the coming years.

• Privileged location which favorslow-cost transport: alumina may be imported from Brazil/Jamaica, and exports will be focused on South America.

• Potentialbilateralagreementsbe-tween Ecuador and its target mar-ket (South America).


2,500 MMUSD



Quito

C O L O M B I A

P E R U

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0 50 100 km

PA

CIF

IC

OC

EA

N

GUAYAS

Posorja

Shipyard

Aluminum

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Construction of a plant for copper smelting and refining with production capacity of ~280 kton/year of copper cathodes

using ~1000 kton of imported and/or local concentrate. Focus is on Asiatic markets, especially China.

PROJECT STATUS:

✓ Pre-feasibility study carried out by SNC-Lavalin and completed in December 2014.

✓Development of feasibility study should begin in April 2015.

✓ Estimated operation start date: 2018 for smelting, 2019 for refining.

COMPETITIVENESS:

• Privileged location to export re-finedcoppertoChinaandimportconcentrated copper from Chile and/or Peru.

• Futureintegrationwithlocallypro-duced concentrated copper.

• Potential to increase revenuesbyexporting sulfuric acid byproduct to Chile at competitive prices.

• Competitivenessfactorsatregion-al and global scale (competitive electricity and labor costs).


2,000 MMUSD



Coppersmeltingandrefiningplant

BASI

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Quito

C O L O M B I A

P E R U

0º

0 50 100 km

PA

CIF

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OC

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N

GUAYAS

Posorja

Shipyard

Copper

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Construction of a mixed plant for the production of BHKP and BSKP with capacity to produce 1,000 kton/year using wood pulp (eucalyptus and pine) of local

origin and imported chemicals. The target market is pulp export to high-demand markets (espe-cially China and Europe).

Pulpplant

PROJECT STATUS:

✓ The study of the Indicator of Annual Average Growth and avail-ability of land is in process and is being carried out by STCP. It is expected to be completed in July 2015.

✓ Pre-feasibility study should start in August 2015.


COMPETITIVENESS:

• Climate and geography are suit-able for planting eucalyptus and pine.

• Availability of land suitable forforests.

• Strategiclocationforexportingtovarious regions, mainly China.

• Ecuador can achieve very quick-ly the automation of crops to in-crease productivity.

• Competitiverawmaterialcosts.• Lowinternallogisticcosts.• Highpotential for integrationwith

the development of the paper in-dustry to replace imports.


2,800 MMUSD



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Guayaquil

Quito

Esmeraldas

Portoviejo

Santa Elena

Machala

Loja

CuencaAzogues

GuarandaAmbato

Tena

Nueva Loja

Franciscode Orellana

Macas

Zamora

PuyoRiobamba

Latacunga

Babahoyo

Ibarra

Tulcán

Santo Domingo

Mining sector projects

MIN

ING

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Ecuador is a country with great geological wealth throughout its territory. For many years, dozens of leading companies have performed research activities in Ecuador and their explorations have discovered large gold and copper mining projects in the provinces of Azuay, Zamora Chinchipe, Morona Santiago andImbabura, among others.

Ecuador has granted mining concessions to private companies whose projects are under prospection, exploration, and some close to come into production. In this catalogue are include projects of the private sector that need investments in order to be developed.

Also, the decision to carry conduct biddings of new mining areas has been taken in order to delegate, through concession, these areas to companies that ensure the use of the best exploration and exploitation practices of areas that have been considered of interest due to their important geological potential. Auction processes can be performed by request of the government or by request of an interested party, which iswhyfinancialbidsshallnotberated,onlythebidderwithregardtotheirexperienceandfinancialcapacity,as well as the technical and environmental proposal they submit.

In 2010 the Ecuadorian Government created the Empresa Nacional Minera, ENAMI (National Mining Company) that has projects in prospection and explo-ration stages. Most of them have all legal permits to

begin operations, and others are already in advanced stages of exploration. This catalogue includes the ENAMI projects that need investments through pub-lic-private alliances.

Two main ways to participate in these projects have been considered:

1. Direct investment2. Strategic public-private alliances

Mining projects in Ecuador have several competitive advantages for potential investors:

• Highmineralrecoveryrates(verygoodmininglaws)• Lowstrippingratio(proximityofmineral)• Accesstowater• Sufficientprovisionofelectricityatattractivecosts• Moderninfrastructureinroads,portsandairports• Monetarystability

Besides the natural advantages of projects, the Ecua-dorian State accompanies mining development in a responsible manner, ensuring productive development and providing incentives:

• Taxstabilityandincentives• Accelerateddepreciationofthemachineryused• Clear and established rules based on Ecuadorian

legislation

MINING SECTOR PROJECTS

Nº. Project name Location Stage Mineral Investment amount (province) (millions of USD)1 Llurimagua Imbabura Advanced exploration Copper-molybdenum 292 Tola Norte Esmeraldas Advanced exploration Ferrous-titaniferous sand 263 Nanguipa ZamoraChinchipe Initialexploration Goldandcopper 194 El Torneado Bolívar Advanced exploration Copper and molybdenum 185 La Bonita Sucumbíos Initial exploration Gold and copper 146 Telimbela Bolívar Advanced exploration Copper and molybdenum 147 Pacto Pichincha Initial exploration Gold and polymetals 78 Sangola ZamoraChinchipe Initialexploration Goldandcopper 6 TOTAL 133

Source: ENAMI EP

Mining sector

27


Advanced exploration of copper and molybdenum within an area of 4,839 Ha.

Location: Province of Imbabura

Llurimaguaminingproject

PROJECT STATUS:

✓ Environmental license.

✓ First drilling phase 15,000 m.

✓ The drilling campaign is scheduled to start on March 15th, 2015.

POTENTIAL:

• Inferredresource:318milliontonsof minerals.

• Coppergrade:0.7%• Molybdenumgrade:0.026%• Projectlifetime:30years.


29 MMUSD


• Directinvestment.• Strategicpublic-privatealliances.

GEOLOGICAL MODEL:

I M B A B U R A

COTACACHI

Llurimagua

Ibarra

C A R C H I

E S M E R A L D A S

P I C H I N C H AS U C U M B I O S

MIN

ING

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

(MagnifiedimageinenclosedCD)

28

Advanced exploration of Ferro-ti-taniferous sand (beach sand), within an area of 4,648 Ha.

Location: Province of Esmeraldas

TolaNorteminingproject

PROJECT STATUS:


✓ First drilling phase (completed).

✓ Analysis and interpretation of samples obtained for the deter-mination of inferred resources (February 2015).

✓ Second drilling phase scheduled (April 2015).

✓ Third drilling phase scheduled (2016).

POTENTIAL:

• Geological potential: 70 MMT(VHM: South American Iron and Steel. SAIS 2005-2010).

• Projectlifetime:35years.


26 MMUSD


• Directinvestment.• Strategicpublic-private alliances.

GEOLOGICAL MODEL:

Esmeraldas

PA C I F I C O C E A N

C O L O M B I A

C A R C H I

I M B A B U R A

P I C H I N C H A

M A N A B Í

S A N T O D O M I N G OD E L O S T S Á C H I L A S

E S M E R A L D A S

LA TOLA

TOLA NORTE

VALDEZ (LIMONES)

TAMBILLO

BORBÓN LAS PEÑAS

PACIFIC OCEAN

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km


29


PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

Initial exploration until identifying resources that make it feasible the conduction of a pre-feasibility mining study in order to quantify probable reserves of gold and

copper within an area of5,066 Ha.

Location: Province of Zamora Chinchipe

PROJECT STATUS:

✓ Initial exploration plan (under development).

✓ Environmental license (being processed).

POTENTIAL:

• Geologicalpotential: 300MMTwith0.5%coppergrade

(CODELCO 2012)


19 MMUSD



GEOLOGICAL MODEL:

Nanguipaminingproject

Zamora

P E R U

L O J A

M O R O N A S A N T I A G O

A Z U AY

NANGUIPA

NANGUIPA1

NANGARITZA

CENTINELA DEL CÓNDOR

ZAMORA

Z A M O R A C H I N C H I P E

MIN

ING


30

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

Advanced exploration of copper and molybdenum mineral resources within an area of approximately 17,878 Ha.

Location: Province of Bolívar

ElTorneadominingproject

PROJECT STATUS:

✓ Environmental license granted

✓Identification of three zones withhigh mineralization potential and high values of copper and molybdenum

✓Implementationof thefirstdrillingstage of 500 m divided into 3 drill-ings in anomalies for massive sul-phide sulphide.

POTENTIAL:

• Inferredresources:200MMT• Projectlifetime:25to30years


18 MMUSD


• Directinvestment• Strategicpublic-private alliances

GEOLOGICAL MODEL:

B O L I V A R

Guaranda

C O T O PA X I

L O S R I O S

G U AYA S

CH I M BOR A ZO

T U N G U R A H U A

CALUMA

GUARANDA

CHIMBO

San Antonio

Gualazay

ChicalomaEl Cristal

CerroGrande


31


PROJECT STATUS:

✓ Environmental license (being processed)

✓ Geological, structural and hydro-thermal alterations mapping

✓ Geochemistry of stream sedi-ments, rocks and soils.ils

✓ Airborne geophysical studies (scheduled)

POTENTIAL:

• Resources (under determinationprocess): geochemistry of stream sediments indicates presence of coarse gold panning

• Possiblecontinuationof tjhepor-phyry copper system of Mocoa Colombia

• Largeareasofhydrothermalalter-ation (12 km2)


14 MMUSD


• Directinvestment• Strategicpublic-private alliances

GEOLOGICAL MODEL:

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

S U C U M B I O S

Nueva Loja

SUCUMBIOSC O L O M B I A

O R E L L A N A

N A P O

C A R C H I

I M B A B U R A

P I C H I N C H A

P E R U

Initial exploration of gold and copper to determine the mineral resources existing within an area of 13,610 Ha.

Location: Province of Sucumbíos

LaBonitaminingproject

SUCUMBIOS

COLOMBIA

CASCALES

La Bonita

Rosa Florida

La Chispa

MIN

ING


32

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

Advanced exploration of copper and molybdenum to determine mineral resources existing within an area of 4,033 Ha.


Telimbelaminingproject

PROJECT STATUS:

✓ Environmental license granted

✓Soilsamples reflectabnormalitiesin:

✓ North Telimbela: 0.4 g/t Au, 5.8 g/t Agand1.65%Cu.(400x1200m)

✓ Center Telimbela: 0.2 g/t Au; 1.6g/tAgand1.60%Cu (500x300m)

✓SouthTelimbela:0.05%Cu

✓ 4000n drilling in Ashuaca sector

POTENTIAL:

• Geologicalpotential:250MTM• ClosetoSouthCurimpambaproj-

ect, with 2.33 & Cu and 2.99 g/t gold.

• Projectlifetime:23years


15 MMUSD.



GEOLOGICAL MODEL:

B O L I V A R

Guaranda

C O T O PA X I

L O S R I O S

G U AYA S

CH I M BOR A ZO

T U N G U R A H U A

Telimbela

CALUMA

CHIMBO

GUARANDA


33


PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0º QUITO

Guayaquil

0 50 100 km

Initial exploration of gold and polymetals to determine the mineral resources that exist within an area of 4,645 Ha.

Location: Province of Pichincha

PROJECT STATUS:


✓ Determination of three areas of exploration interest within the Urcutambo concession

✓ Development of drilling plan of 1,800min“ElViudo”sector.

POTENTIAL:

• GeologicalPotential: 250,000 ounces of gold


7 MMUSD



GEOLOGICAL MODEL:

Pactominingproject

I M B A B U R A

E S M E R A L D A S

S A N T O D O M I N G O D E L O S T S Á C H I L A S

N A P O

S U C U M B I O S

C O T O PA X I

Quito

DISTRICTMETROPOLITANQUITO

P I C H I N C H A

MIN

ING


GUALEA

CANTÓN QUITO

PACTO

INGAPICOD: 4030082394 Ha

URCUTAMBOCOD: 4030092351 Ha

34

Initial exploration of gold and copper to determine mineral resources that exist within an area of 6,507 hectares.


Sangolaminingproject

PROJECT STATUS:

✓ Initial exploration plan (being developed).


POTENTIAL:

• 3mainveinswithaconfirmedandsampled area with a longitude of 250m to 300m, and with tenors ranging from 4.7 to 102g/t Au.

• Polymetallicveineddepositoflowsulphidationt.

• Located in the geological stripof Fruta del Norte and Mirador projects.


6 MMUSD.



GEOLOGICAL MODEL:

Zamora P E R U

L O J A

M O R O N A S A N T I A G OA Z U AY


Chorocoto

Palma

Rebeca

Karina 6

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km


35


Mining blocks for bidding

MIN

ING

Nº. Name of Area Location Potential (occurrences) the block (Ha) Province Reference coordinate1 1 A 23.724 Esmeraldas Lat: 1.073 N; Long: 78.63 W Gold2 1 B 24.278 Esmeraldas Lat: 0.989 N; Long: 78.730 W Gold3 1 C 17.551 Esmeraldas Lat: 0.900 N; Long: 78.860 W Gold4 2 A 6.612 Carchi Lat: 0.807 N; Long: 78.244 W Gold and manganese5 2 B 8.853 Imbabura Lat: 0.679 N; Long: 78.346 W Gold6 3 A 20.400 Esmeraldas Lat: 0.460 N; Long: 79.050 W Platinum, cobalt, manganese and tellurium7 3 B 4.500 Imbabura Lat: 0.330 N; Long: 78.760 W Gold8 4 3.300 Santo Domingo Lat: 0.301 S; Long: 78.900 W Gold, silver, copper, lead and zinc de los Tsachilas 9 5 33.500 Napo Lat: 0.896 S; Long: 77.80 W Gold10 6 A 16.000 Cotopaxi Lat: 1.063 S; Long: 79.19 W Gold and copper11 6 B 39.500 Bolívar Lat: 1.312 S; Long: 79.08 W Gold and copper12 6 C 5.304 Los Ríos Lat: 1.580 S; Long: 79.29 W Gold and copper13 7 37.100 Chimborazo Lat:1.940S;Long:78.49W Zinc,copperandsilver14 8 10.890 Cañar Lat: 2.540 S; Long: 79.12 W Gold, silver and zinc15 9 28.175 Morona Santiago Lat: 3.240 S; Long: 78.83 W Gold, magnetite and pyrite and Azuay 16 10 A 9.562 El Oro Lat: 3.37 S; Long: 79.540 W Gold, zinc, cobalt and tellurium17 10 B 7.310 El Oro Lat: 3.54 S; Long: 79.620 W Gold and polymetals18 11 A 9.350 ZamoraChinchipe Lat:3.84S;Long:78.830W Goldandsilver19 11B 5.000 ZamoraChinchipe Lat:3.93S;Long:78.900W Goldandsilver20 12 A 31.160 Loja Lat: 3.92 S; Long: 79.780 W Gold, lead and antimony21 12 B 12.680 Loja Lat: 4.17 S; Long: 79.790 W Gold, silver, lead, zinc and molybdenum22 12 C 5.000 Loja Lat: 4.28 S; Long: 79.510 W Gold, copper and lead23 13A 9.850 ZamoraChinchipe Lat:4.65S;Long:78.920W Gold,copper,leadandzinc24 13B 22.425 ZamoraChinchipe Lat:4.82S;Long:79.010W Gold25 13C 39.777 ZamoraChinchipe Lat:4.80S;Long:79.210W Molybdenum,thorium,barium, uranium, cerium, tungsten, niobium, tin and lead Source: Instituto Nacional de Investigación Geológico Minero Metalúrgico, INIGEMM (National Institute for Geological, Mineral and Metallurgical Research)

36

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

This block is located north of Ecuador in the foothills of the Toisán range which is part of the Cordillera Occidental Range. Altitude varies from 50 to 500 meters above sea level. The area of the block is 23,724 Ha.

Location: Province of EsmeraldasCoordinates: Lat: 1.073 NReference GCS: Long: 78.63 W

Block1A

POTENTIAL:

Occurrences of gold in alluvial depos-its and Quaternary age terraces.


• Directinvestment.

BLOCK GEOLOGY:

The block is located on rocky out-crops that are part of a forearc sed-imentary basin of the Tertiary age, corresponding to the Borbon and Canoa formations, covered by San Tadeo formation and estuarine ma-rine clays.

GEOLOGICAL MODEL:

Esmeraldas


C O L O M B I A

C A R C H I

I M B A B U R A

P I C H I N C H A

M A N A B Í

E S M E R A L D A S

Block 1A

SAN LORENZO


37


PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km



POTENTIAL:




BLOCK GEOLOGY:

In the block outcrop sedimentary rocks of the tertiary basin corre-sponding to Zapallo, Playa Rica,Angostura, Onzole and Borbón for-mations; estuarine marine clays cov-er the area.

GEOLOGICAL MODEL:

Block1B

Esmeraldas


C O L O M B I A

C A R C H I

I M B A B U R A

P I C H I N C H A

M A N A B Í

E S M E R A L D A S

Block 1B

SAN LORENZO

MIN

ING


38

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km



Block1C

P I C H I N C H A

M A N A B Í

Esmeraldas


C O L O M B I A

C A R C H I

I M B A B U R A

E S M E R A L D A S

ELOY ALFARO

SAN LORENZO

Block 1C

POTENTIAL:




BLOCK GEOLOGY:

In the block outcrop sedimentary rocks of the tertiary basin corre-sponding to Zapallo, Playa Rica,Angostura, Onzole and Borbón for-mations; estuarine marine clays cov-er the area.

GEOLOGICAL MODEL:


39


PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km


Location: Province of CarchiCoordinates: Lat: 0.807 NReference GCS: Long: 78.244 W

Block2A

POTENTIAL:

Traces of gold and manganese are found in samples of active river sediments. This block is ad-jacent to Cascabel project of the CORNERSTONE - SOLDGOLD Company.



BLOCK GEOLOGY:

Bedrock is made up, to the west, by volcanic rocks that are part of an is-landsarcoftholeiiticaffinitywhichareincluded in the Naranjal Unit of the Cretaceous age and east by sedi-mentary rocks of the Cretaceous age that are part of the Pilatón unit. To the west, bedrock is in tectonic contact with Eocene sedimentary rocks of El Laurel unit. Sequences are covered by continental volcanic rocks of calc-alkaline affinity of the San Juan deLachas unit of the Oligocene.

GEOLOGICAL MODEL:

C O L O M B I A

E S M E R A L D A S

S U C U M B I O S

P I C H I N C H A

Tulcán

C A R C H I

MIRA

Block 2A

MIN

ING


40

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

This block is located north of Ecuador in the foothills of the Toisán range which is part of the Cordillera Occidental Range. Altitude is 500 meters above sea level. The area of the block is 8,853 Ha.

Location: Province of ImbaburaCoordinates: Lat: 0.679 NReference GCS: Long: 78.346 W

POTENTIAL:

Traces of gold are found in samples of active river sediments. This block is adjacent to Cascabel project of the CORNERSTONE – SOLDGOLD Company.



BLOCK GEOLOGY:

Bedrock is made up, to the west, by volcanic rocks that are part of an islands arc of tholeiitic affinitywhichare included in the Naranjal Unit of the Cretaceous age and east by sed-imentary rocks of the Cretaceous age that are part of Pilatón unit. Sequences are overlain by Eocene sedimentary rocks of El Tortugo and El Laurel units to the west and to the east, respectively. Sequences are covered by continental volca-nic rocks of calc-alkaline affinity ofthe San Juan de Lachas unit of the Oligocene. Pluton of La Merced de Buenos Aires, of granodiorite and diorite composition from the Miocene, intrudes the pre-Oligocene sequences.

GEOLOGICAL MODEL:

Block2B

C A R C H I

E S M E R A L D A S

S U C U M B I O SP I C H I N C H A

Ibarra

I M B A B U R A

IBARRA

SAN MIGUEL DE URCUQUÍ

Block 2B


41


PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

This block is located in the foothills of the Cordillera Occidental Range, with heights not higher than 800 meters above sea level. The area of the block is 20,400 Ha.


Block3A

POTENTIAL:

Traces of platinum, cobalt, manga-nese and tellurium are found in sam-ples of active river sediments. This block is located east of Llurimagua project of the ENAMI and north of El Corazón project.



BLOCK GEOLOGY:

The region bedrock is made up by mafic and ultramafic rocks includedin the Naranjal Unit which is part of the Caribe plateau, overlain by marine sedimentary rocks of the Colorado Unit and volcanoclastic rocks of Río Desgracia Unit. A gabbroic intrusive is placed in the cretaceous rocks. The area is crossed by the Canandé fault.

GEOLOGICAL MODEL:

Esmeraldas


C O L O M B I A

C A R C H I

I M B A B U R A

E S M E R A L D A S

ELOY ALFARO

QUININDÉ

Block 3A

MIN

ING

M A N A B Í

S U C U M B I O S


42

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

This block is located in the foothills of the Cordillera Occi-dental Range at an average altitude of 200 meters above sea level. The area of the block is 4,500 Ha.

Location: Province of ImbaburaCoordinates: Lat: 0.33 SReference GCS: Long: 78.76 W

POTENTIAL:

Traces of gold are found in samples of active river sediments in the drains located at the southwest of the block. The block is located between El Corazón (Au) and Llurimagua (Cu-Mo) mining projects.



BLOCK GEOLOGY:

The region bedrock is made up by mafic and ultramafic rocks includedin the Naranjal Unit, which is part of the Caribe plateau, overlain by ma-rine sedimentary rocks of El Tortugo Unit from the Eocene. In the east area, Apuela batholith rocks intrude the pre-Oligocene sequences. The area is crossed by the Toachi fault.

GEOLOGICAL MODEL:

Block3B

C A R C H IE S M E R A L D A S


Ibarra

I M B A B U R A

COTACACHIBlock 3B


43


This block is located in the Cor-dillera Occidental Range at an average altitude of 1,500 meters above sea level. The area of the block is 3,300 Ha.

Location: Province of Santo Domingo de los TsáchilasCoordinates: Lat: 0.301 SReference GCS: Long: 78.90 W

Block4

POTENTIAL:

Two traces of gold, silver, copper, lead and zinc have been found in La Palma and Dos Ríos areas. The block is located northeast of La Plata mine (VMS), which is currently inactive.



BLOCK GEOLOGY:

The bedrock is constituted by ma-rine sedimentary rocks included in Malaute and Pilatón units of the Cretaceous age. The western part of the area has volcanic rocks which are part of an arc of islands of tholeiitic affinity included in theMacuchiUnit.Eocene intrusive bodies elongated with north-south direction and of di-orite composition intrude the rocks of the Cretaceous units. Quaternary ter-races cover partially the above men-tioned rocks in the south of the block. A branch of the Toachi regional fault is the contact between the rocks of the Macuchi and Mulaute units.

GEOLOGICAL MODEL:

Santo Domingo


Block 4

P I C H I N C H A

C O T O PA X I

L O S R I O S

M A N A B Í

E S M E R A L D A S

ALLURIQUÍN

MIN

ING

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km


44

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

This block is located in the foothills of the Real Oriental range at an average altitude of 1,000 meters above sea level. The area of the block is 33,500 Ha.

Location: Province of Napo Coordinates: Lat: 0.896 SReference GCS: Long: 77.80 W

POTENTIAL:

Indications of alluvial gold in three rivers that cross the block. Adjacent to the ar-eas of Terra Earth Resources S.A.



BLOCK GEOLOGY:

The oldest sequence is the Misahuallí Unit of the Jurassic age, constituted mainly by calc-alkaline volcanic rocks of continental arc. Overlaying incon-gruously in the Misahuallí Unit we can findtheHollínandNapomarinesedi-mentary formations and the Tena for-mation of the upper Cretaceous age of continental origin. Cenozoic conti-nental sediments cover sequences in the western sector. In the northwest of the area, Abitagua granite from the Jurassic age is exposed.

GEOLOGICAL MODEL:

Block5

Tena

N A P O

S U C U M B I O SP

ICH

INC

HA

C O T O PA X I

T U N G U R A H U A

PA S TA Z A

O R E L L A N A

ARCHIDONA

TENA

Block 5


45


PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

This block is located in the Cordillera Occidental Range, southwest of the province of Cotopaxi at an average altitude of 1,500 meters above sea level. The area of the block is 16,000 Ha.

Location: Province of Cotopaxi Coordinates: Lat: 1.063 SReference GCS: Long: 79.19 W

Block6A

POTENTIAL:

Traces of gold and copper are found in samples of active river sediments col-lected in the northeast and southwest of Block 6A.

Block 6A is located southwest of the old Macuchi (VMS) mine which was exploited in the last century, and near Curipamba projects of Curimining S.A.


• Directinvestment

BLOCK GEOLOGY:

This block is made up mostly by volcanic, volcanoclastic and volca-nosedimentary rocks, predominantly of mafic composition and tholeiiticaffinity included in theMacuchiUnit,which is part of an islands arc that developed in the Paleocene-Eocene. By geological correlation, it is estab-lished that bedrock is the Caribbean Plateau. This sequence is intruded by plutons of quartz dioritic, dioritic and tonalitic composition, of calc-alkaline affinity. Several alluvial deposits andterraces cover the above mentioned sequences, south-west of the area.

GEOLOGICAL MODEL:

C O T O PA X I

S A N T O D O M I N G OD E L O S T S A C H I L A S

L O S R I O S

P I C H I N C H A

N A P O

T U N G U R A H U A

B O L I V A R

Latacunga

PANGUA

Block 6A

MIN

ING


46

This block is located in the Cor-dillera Occidental Range, north of the province of Bolívar, at an average altitude of 2,500 meters above sea level. The area of the block is 39,500 Ha.

Location: Province of Bolivar Coordinates: Lat: 1.312 SReference GCS: Long: 79.08 W

POTENTIAL:

Several areas of hydrothermal alteration and places with pyrite and chalcopyrite mineralization. Occurrences of copper and gold. Located near Curipamba Projects of Curimining S.A.


Direct investment.

BLOCK GEOLOGY:

This block is constituted by volca-nic rocks included in the Macuchi Unit and vocanosedimentary rocks of the Arrayanes Unit. In the south-eastern part, sequences are covered by volcanosedimentary rocks of the ZumbahuaGroup.Severalintrusionsof Miocene age of variable composi-tion (quartz dioritic, dioritic and tonal-itic), including plutons of El Corazón and Chazo Juan, intrude the above described sequences.

GEOLOGICAL MODEL:

Block6B

B O L I V A R

Guaranda

C O T O PA X I

L O S R I O S

G U AYA S

CH I M BOR A ZO

T U N G U R A H U A

GUARANDA

Block 6B

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km


47


This block is located in the west flank of the Cordillera Occidental Range, east of the province of Los Ríos, at an average altitude of 700 meters above sea level. The area of the block is 5,304 Ha.

Location: Province of Los Ríos Coordinates: Lat: 1.580 SReference GCS: Long: 79.29 W

Block6C

POTENTIAL:

Several areas of hydrothermal alter-ation and places with pyrite and chal-copyrite mineralization. Occurrences of copper and gold. Located northeast of Telimbela project of the ENAMI.



BLOCK GEOLOGY:

The bedrock is constituted by volca-nic rocks of Macuchi Unit. An intru-sive of the Oligocene-Miocene age of granodioritic to tonalitic composition intrudes the paleoscenic sequences which make up most of the north-western part of the area.

GEOLOGICAL MODEL:

Quevedo

Block 6CURDANETA

L O S R I O S

G U AYA S

M A N A B Í

C O T O PA X I

B O L I V A R

MIN

ING

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km


48

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

This block is located in the central area of the Real Oriental range in Sacraurcu sector, northeast of the Province of Chimborazo, at an average altitude of 3,500 meters above sea level. The area of the block is 37,100 Ha.

Location: Province of Chimborazo Coordinates: Lat: 1.94 SReference GCS: Long: 78.49 W

POTENTIAL:

Several signs of volcanogenic mas-sive sulphides with occurrences of zinc, copper and silver. Adjacent to the Yurac Rumi project of the CONMINAS S.A. Company.



BLOCK GEOLOGY:

The oldest rocks are included in the Alao-Paute Unit of the Jurassic age, interpreted as an arc of islands locat-ed west of the rocks that form the core of the metamorphic belt of the Cordillera Real. In the western part of the block, in tectonic contact, are the metaturbidites of Maguazo Unit which are also from the Jurassic age. On the western edge appears the PeltetecUnitconsistingofmaficandultramaficrockswhicharepartofanophiolitic complex. Sequences are intruded by Alao pluton of the Tertiary age. The southern region is covered by Tertiary and Quaternary volcanic rocks.

GEOLOGICAL MODEL:

Block7

Riobamba

Block 7

C H I M B O R A Z O

GUAMOTE

RIOBAMBA

CHAMBO


G U AYA S

B O L I V A R

C A Ñ A R

T U N G U R A H U A


49


PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

This block is located in the Cor-dillera Occidental Range, in the center of the province of Cañar at an average altitude of 2,400 meters. The area of the block is 10,890 Ha.

Location: Province of Cañar Coordinates: Lat: 2.54 SReference GCS: Long: 79.12 W

Block8

POTENTIAL:

Areas with hydrothermal alteration with pyrite mineralization and oc-currences of zinc, silver and gold. Adjacent to ELIPE and AMEGOLD S.A. projects.



BLOCK GEOLOGY:

The oldest sequences are the subaer-ial volcanic and intermediate calc-al-kaline to acid rocks of the Saraguro Group, which include the Ocaña for-mation, overlain by the Tomebamba Unit, the Chanlud and Cerro Caucay formations whose age ranges from the Late Middle Eocene to the Early Miocene. There is a predominance of andesitic lavas interbedded with vol-canic sediments and andesitic mas-sive tuffs with lithic lapilli, producedbyashflows.Rhyoliticdomesintrudeinto the Chanlud formation.

GEOLOGICAL MODEL:

C A Ñ A R

Azogues

CAÑAR

SUSCAL

Block 8

EL TAMBO

CH I M BOR A ZO

A Z U AY

G U AYA S MIN

ING



50

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

This block is located on the western flank of the Cordillera Real range, southeast of the province of Azuay and on the border with the province of Morona Santiago at an average altitude of 2,900 meters above sea level. The area of the block is 28,175 Ha.

Location: Provinces of Morona Santiago and Azuay Coordinates: Lat: 3.24 SReference GCS: Long: 78.83 W

POTENTIAL:

Several rivers with presence of alluvi-al gold, in addition to gold, magnetite and pyrite mineralization. Traces of zinc, arsenic, antimony and barium in samples of river sediments and, in heavy sediments, tungsten, tin, cerium, yttrium and chromium. This block is adjacent to the projects of TERRASOURCES S.A.



BLOCK GEOLOGY:

The bedrock is made up by meta-morphic rocks of the Chiguinda unit. Regarding lithology, bedrock includes low-grade metamorphic rocks, inter-preted as a part of an intracratonic ba-sic and correlated with Carboniferous and Devonian rocks of the Peru – Bolivia Depression. To the west there is an outcrop of Type S metagranites of the Tres Lagunas unit. Contact be-tween the two units is tectonic. Minor intrusive bodies of the Tertiary age are located in the pre-Cretaceous units. Units are covered by tertiary conti-nental volcanic rocks.

GEOLOGICAL MODEL:

Block9

Cuenca

Macas


A Z U AY

GUALAQUIZA

NABÓN

C A Ñ A R

G U AYA S

E L O R O

L O J A

Z AMOR A C H I N CH I P E

PA S TA Z A

P E R U

T U N G U R A H A

CH I M BOR A ZO

Block 9


51


PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

This block is located south of the Cordillera Occidental Range, northeast of the province ofEl Oro, at an average altitude of 1,400 meters above sea level. The area of the block is 9,562 Ha.

Location: Province of El Oro Coordinates: Lat: 3.37 SReference GCS: Long: 79.54 W

POTENTIAL:

Occurrences of gold, zinc, cobalt and tellurium. Close to the San Gerardo mining areas.



BLOCK GEOLOGY:

The block is located southwest of the Cordillera Occidental range, bedrock is made of rocks of El Oro Metamorphic Complex which in-cludes rocks of the Piedras Maphic Complex and of the Moromoro Granitoyd Complex of the Triassic age, overlaid incongruously by rocks related to the Oligocene volcanism of the Saraguro Group from the Middle Late Eocene to the Early Miocene, and volcanosedimentary rocks of the Santa Isabel formation. Rocks of granodioritic composition from the Miocene intrude the metamorphic, volcanic and sedimentary rocks.

GEOLOGICAL MODEL:

Block10A

E L O R O

Machala

CHILLA

ZARUMA


A Z U AY

L O J A

P E R U

Block 10A

MIN

ING


52

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

This block is located on the southwest of the Cordillera Occidental Range, east of the province of El Oro and at an average altitude of 2,400 meters above sea level. The area of the block is 7,310 Ha.

Location: Province of El Oro Coordinates: Lat: 3.54 SReference GCS: Long: 79.62 W

Block10B

POTENTIAL:

Occurrences of metallic minerals of gold and polymetals. There is also a mesothermal mineralization area with presence of tourmaline, quartz, seric-ite, epidote and arsenopyrite. Traces of gold, zinc, cobalt-mercury-antimo-ny-lead-tellurium and arsenic in sam-ples of active stream sediments.



BLOCK GEOLOGY:

The bedrock is made up by rocks of El Oro Metamorphic Complex which includes rocks of the Piedras Maphic Complex and of the Moromoro Granitoyd Complex of the Triassic age, overlaid incongruously by rocks related to the Oligocene volcanism of the Saraguro Group from the Middle Late Eocene to the Early Miocene. Rocks of granodioritic composition from the Miocene are largely spread and intrude the metamorphic and vol-canic rocks of the Saraguro Group.

GEOLOGICAL MODEL:

E L O R O

Machala

CHILLA

ZARUMA


A Z U AY

L O J A

P E R U

Block 10BATAHUALPA


53


This block is located south of the Cordillera Real range in the Pan de Azúcar Mountain, at an average altitude of 1,800 meters above sea level. The area of the block is 9,350 Ha.

Location: Province of Zamora Chinchipe Coordinates: Lat: 3.84 SReference GCS: Long: 78.83 W

Block11A

POTENTIAL:

Occurrences of gold and silver. This block is located west of the Fruta del Norte project (AURELIAN S.A.).



BLOCK GEOLOGY:

In this sub-Andean belt appears the Misahualli Unit, made up by conti-nental calc-alkaline lavas, intruded by theZamorabatholithwhich ismadeup by granodiorites and diorites.

GEOLOGICAL MODEL:

Zamora

P E R U

L O J A



CENTINELADEL CÓNDOR

CHILLA

ZAMORA

Block 11A

MIN

ING

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km


54

This block is located south of the Cordillera Real range in San José, Cumbaratza and La Ramada hills, at an average altitude of 1,600 meters above sea level. The area of the block is 5,000 Ha.


POTENTIAL:

Occurrences of gold and silver, and also of alluvial gold. The block is lo-cated west of the Fruta del Norte project (AURELIAN S.A.)



BLOCK GEOLOGY:

In the sub-Andean belt appear most-ly rocks from the Zamora batolite,which are made up by granodiorites anddioritesofcalc-alkalineaffinity.

GEOLOGICAL MODEL:

Block11B

Zamora

PERU

LOJA

MORONA SANTIAGOAZUAY


ZAMORA

Block 11B

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km


55


PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

This block is located in the Cor-dillera Occidental Range, in the north central part of the Province of Loja, at an average altitude of 1,600 meters above sea level. The area of the block is 31,160 Ha.

Location: Province of Loja Coordinates: Lat: 3.92 SReference GCS: Long: 79.78 W

Block12A

POTENTIAL:

Traces of lead, gold and antimony. Adjacent to projects of ELIPE S.A.



BLOCK GEOLOGY:

This block is located in the Alamor Lancones Basin, south of El Oro Metamorphic Complex and is made up by volcanoclastic rocks of the Celica Unit from the Lower Cretaceous Age, overlain by volca-nosedimentary rocks of the Alamor Group(QuillosaraandZapotillounits)of the Upper Cretaceous.

GEOLOGICAL MODEL:

SARAGURO

PERU

EL ORO

AZUAY

ZAMORACHINCHIPEL O J A

Loja

Block 12A

PALTAS

CHAGUARPAMBA

OLMEDO

MIN

ING


56

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

This block is located on the Cor-dillera Occidental Range, in the east central part of the Province of Loja at an average altitude of 1,600 meters above sea level. The area of the block is 12,680 Ha.

Location: Province of LojaCoordinates: Lat: 4.17 SReference GCS: Long: 79.79 W

Block12B

POTENTIAL:

Traces of polymetals with gold, sil-ver, lead, zinc and molybdenum. Adjacent to ELIPE S.A. projects.



BLOCK GEOLOGY:

Block 12B begins in Alamor Lancones Basinandismadeupbybasiceffu-sive and intrusive rocks of tholeiitic affinity of the Punta de Piedra Unitfrom the Lower Cretaceous age. In most of the area occurs the Tangula batholithofcalc-alkalineaffinity fromthe Cretaceous age, which intrudes the volcanic rocks.

GEOLOGICAL MODEL:

SARAGURO

PERU

EL ORO

AZUAY

ZAMORACHINCHIPE

L O J A

Loja

Block 12BCELICA

SOZORANGA

Block 12B


57


PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

IThis block is located on the Cor-dillera Occidental Range, in the central-east part of the Province of Loja at an average altitude of 1,600 meters above sea level. The area of the block is 5,000 Ha.

Location: Province of Loja Coordinates: Lat: 4.28 SReference GCS: Long: 79.51 W

Block12C

POTENTIAL:

Traces of polymetals with gold, cop-per and lead. Adjacent to ELIPE S.A. projects.



BLOCK GEOLOGY:

This block is located in the east edge of the Alamor Lancones Basin and is made up by volcanic and volca-noclastic rocks from the Paleocene-Eocene age of the Sacapalca Unit.

GEOLOGICAL MODEL:

EL ORO

AZUAY

ZAMORACHINCHIPE

SARAGURO

PERU

Loja

Block 12BL O J A

Block 12C

CARIAMANGA

GONZANAMÁ

QUILANGA

MIN

ING


58

This block is located south of Ecuador in the Cordillera Real range in San Francisco del Vergel sector, at an average altitude of 2,000 meters above sea level. The area of the block is 9,850 Ha.


POTENTIAL:

Several rivers have traces of allu-vial gold, lead, zinc and copper in samples of river sediments, and in heavy sediments there are traces of chrome and vanadium. Close to ar-eas of the National Mining Company andBIRA S.A.



BLOCK GEOLOGY:

Located in the Cordillera del Cóndor range, the block is made up by conti-nental calc-alkaline volcanic rocks of the Misahuallí Unit from the Jurassic age, intruded by granodiorites and dioritesofZamorabatholithfromtheJurassic age. Sequences are overlain incongruously by sedimentary rocks of the Hollin and Napo formations of the Cretaceous age. Contact be-tween all sequences is tectonic and is represented by La Canela fault of north-south direction.

GEOLOGICAL MODEL:

Block13A

Zamora

P E R U

L O J A



Block 13A

CHINCHIPE

PALANDA

NANGARITZA

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km


59


This block is located on the southern border of Ecuador with Peru in the Chito sector of the Cordillera Real range, at an average altitude of 1,500 meters above sea level. The area of the block is 22,425 Ha.


Block13B

POTENTIAL:

Several rivers with traces of alluvial gold. Adjacent to areas of the National Mining Company and BIRA S.A.



BLOCK GEOLOGY:

Located in the Cordillera del Cóndor range, this block is made up by con-tinental calc-alkaline volcanic rocks of the Misahuallí Unit from the Jurassic age, intruded by granodiorites and dioritesoftheZamorabatholithfromthe Jurassic age. Sequences are overlain incongruously by sedimen-tary rocks of the Hollin and Napo formations from of the Cretaceous age. Contact between all sequences is tectonic and is represented by La Canela fault of north-south direction.

GEOLOGICAL MODEL:

Zamora

P E R U

L O J A


A Z U AY


Block 13B

CHINCHIPE

PALANDA

MIN

ING

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km


60

This block is located in the southern border of Ecuador with Peru in Chito sector of the Cor-dillera Real range, at an average altitude of 1,500 meters above sea level. The area of the block is 39,777 Ha.

Location: Province of Zamora Chinchipe Coordinates: Lat: 4,80 SReference GCS: Long: 79,21 W

Block13C

POTENTIAL:

Presence of molybdenum, thori-um, barium, uranium, cerium, tung-sten, niobium, tin and lead has been reported.



BLOCK GEOLOGY:

The block is located in the Cordillera Real range and is mostly made up by metamorphic rocks of the Sabanilla Unit from the Triassic age, which are in tectonic contact with rocks of the Isimanchi Unit and the Zamorabatholith, along the Palanda fault of north-south direction.

GEOLOGICAL MODEL:

Zamora P E R U

L O J A



Block 13C

PALANDA

CHINCHIPE

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km


61


Private mining projects

PRIV

ATE

MIN

ING

62

No. Project name Location Stage Type of mineral (province) 1 Vetas Grandes Azuay Advanced exploration Gold and Silver2 Caña Brava Loja and El Oro Initial exploration Gold, Silver and Copper3 Bella María El Oro Initial exploration Gold and copper4 Barranco Colorado Azuay Exploitation Gold, Silver and Copper5 El Palmar-Los Mandariyacus Manabí Advanced exploration Gold, silver, copper, zinc and lead6 Loma Larga Azuay Pre-feasibility Gold7 RíoZarza Azuay Advancedexploration Goldandcopper8 CondorGold Zamora Advancedexploration Gold9 Warints Morona Santiago Initial exploration Copper10 Cangrejos El Oro Advanced exploration Gold and copper11 Zaruma ElOro Exploitation Gold

PRIVATE MINING PROJECTS

63


PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

Advanced exploration of a low sulphidation epithermal deposit with high grades of gold and silver within an area of 4,700 Ha.

Location: Province of Azuay

VetasGrandesminingproject

PROJECT STATUS:

✓ Geology, geochemistry, geophys-ics, trenching and mapping works have been completed.

✓ Environmental license for advanced exploration (being processed).

POTENTIAL:

• Quartz veins that outcrop in anarea of 1,400m x 400m with high grade values between 1 and 50 g/t Au (up to 884.6 g/t Au) and with 40 to 1,000 g/t Ag.

• Regional inspectionsuggestsad-ditional potential of gold and silver epithermal systems and gold and copper porphyry deposits.

CONTACT INFORMATION: CORNERSTONE Yvan Crepeau - General ManagerPhone number: (593 2) 223 2217Website: cornerstoneresources.com Email: [email protected]

GEOLOGICAL MODEL:

Z AMOR AC H I N C H I P E

A Z U AY

Cuenca

G U AYA S

L O J A

M O R O N AS A N T I A G O

Vetas Grandes

PRIV

ATE

MIN

ING


64

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

Initial exploration of a high sulphidation epithermal deposit. Surface gold and silver and gold and copper porphyry at depth. The project covers an area of 1,150 Ha.

Location: Provinces of Loja and El Oro

CañaBravaminingproject

PROJECT STATUS:

✓ Prospection and Geological Survey Program completed (re-sults February 2015).

✓ The project has all necessary permissions.

POTENTIAL:

• Two areas with high epithermalmineralization of high sulphidation havebeen identified,coveringanarea of up to 2,5 km x 2 km in the Caña Brava gap and of 1.75 x 1 km in the East area.

• Economic values of gold, silverand copper in samples collected suggest great potential for the ex-istence of epithermal deposits of precious metals, as well as deep copper-gold deposits.

CONTACT INFORMATION:

CORNERSTONE Yvan Crepeau – General ManagerPhone number: (593 2) 223 2217Website: cornerstoneresources.com Email: [email protected]

GEOLOGICAL MODEL:

Loja

Machala

L O J A

E L O R O

A Z U AY



P E R U

Caña Brava


65


PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

Initial exploration within an area covering 1,401 Ha. containing porphyry-type, veined mineral-izations, where main minerals are gold, copper and molybdenum.

Location: Province of El Oro

BellaBariaminingproject

PROJECT STATUS: ✓ Initial exploration phase in process

to change to advanced explora-tion phase.

✓ 2,163 samples analyzed (645 rocks, 1,254 soils, 43 sediments, 66 BLEGs and 155 HMCs).

✓ Environmental license for the ad-vanced exploration phase.

POTENTIAL:

• Anomalyofgold-copper+/-molyb-denum in the central part of the 3x2 km concession.

• Seven prospects identified todate, with significant mineraliza-tion of Au, Ag and Cu.

• Located in the southern partof the porphyry belt of the Late Oligocene – Early Miocene.

CONTACT INFORMATION: CORNERSTONE Yvan Crepeau – General ManagerPhone number: (593 2) 223 2217Website: cornerstoneresources.com Email: [email protected]

GEOLOGICAL MODEL:

E L O R O

Machala


A Z U AY

L O J A

P E R U

Bella María

PRIV

ATE

MIN

ING


66

Exploitation of a polymetallic deposit with high grades of gold, silver and copper. The project covers an area of 566 Ha.


BarrancoColoradominingproject

PROJECT STATUS:

✓ Exploitation phase through under-ground methods.

✓ There is a mapping of under-ground works and geological samples.


POTENTIAL:

• Inferred resources of 388,746ounces of gold.

• Twomainstructuresarecurrentlybeing exploited:

- Agriplaza vein with an average thickness of 0.3 m and an aver-age gold grade of 15 g/t.

- The normal vain has an average thickness of 1 m. and an average grade of 5 g/t.



AGRIPLAZAS.A.Eng. María Gracia DueñasCommercial Manager E-mail: [email protected] Phone number: (593 4) 382 3596.

GEOLOGICAL MODEL:

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km


A Z U AY

Cuenca

G U AYA S

L O J A


C A Ñ A R


Shumiral

CAMILOPONCEENRIQUEZ

67


Exploration of a porphyry-type deposit with high grade of gold, silver and copper, within the Junín-Cascabel Metallogenic District. The project covers an area of 800 Ha.

Localization: Province of Imbabura

ElPalmar-LosMandariyacusminingproject

PROJECT STATUS:

✓ Drilling and sampling works have been carried out and samples have been analyzed.

POTENTIAL:

• Geological resources of at least3 thousand ounces of equivalent gold.


Eng. Edgar O. Salazar M. E-mail: [email protected] Phone number: (593) 9 970 79912

GEOLOGICAL MODEL:

PRIV

ATE

MIN

ING

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 kmC A R C H I

E S M E R A L D A S


Ibarra

I M B A B U R A

GARCÍA MORENO


El Palmar

68


A Z U AY

Cuenca

G U AYA S

L O J A


Epithermal deposit of high sulphi-dation of gold, silver and copper. Covers an area of 8,030 Ha.


LomaLargaminingproject

PROJECT STATUS:

✓ Financial pre-feasibility study of the project is being completed.

✓ The implementation of under-ground mining method is being considered, and to process 1,000 tons per day.

POTENTIAL:

• Measured reserves of 3.5 thou-sand ounces of gold.


INV METALES ECUADOREng. Jorge BarrenoGeneral ManagerPhone number: (593 2) 246 8673 Website: www.invmetals.com E-mail: [email protected]

GEOLOGICAL MODEL:

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

C A Ñ A R


GIRÓN

San Fernando

69


Advanced exploration of a poly-metals deposit with high values of gold and copper. The project covers an area of approximately 1,140 Ha.


RíoZarzaminingproject

PROJECT STATUS:

✓ Drilling, geochemistry, geophysics and modeling works have been carried out.


POTENTIAL:

• This project is located near themost recent discoveries of hydro-

thermal deposits in the country: Fruta del Norte and Bonza Las Peñas, property of the Kinross / Lundin Company.



Ecometals LimitedRodrigo Izurieta, FinanceE-mail: [email protected] Phone number: (593 2) 600 4444

GEOLOGICAL MODEL:

PRIV

ATE

MIN

ING

Zamora P E R U

L O J A



Río Zarza

YANTZAZA

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km


70

Advanced exploration of a poly-metallic porphyry of gold, silver and copper. The project covers an area of 8,000 Ha. and has the NI 43 101 Technical Report.

Location: Province of Zamora Chinchipe.

CondorGoldminingproject

PROJECT STATUS:

✓Preliminaryfinancialstudies. ✓ Environmental and social license.

POTENTIAL:

• Indicatedandinferredresource:- 10.6 million ounces of gold. - 37.7 million ounces of silver.- 1.2 billion pounds of copper.


CHF INVESTOR RELATIONSJeanny SoE-mail:[email protected] number: 001 416 868 1079

GEOLOGICAL MODEL:

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

Zamora P E R U

L O J A



NANGARITZA

PAQUISHA

Cóndor Gold


71


Initial exploration of a copper and molybdenum polymetallic deposit. The project covers an area of 10,000 Ha.

Location: Province of Morona Santiago

Warintsminingproject

PROJECT STATUS:

✓ Social license and permits (being processed).

✓ Project lifetime: 10 years or more, depending on exploration results.

POTENTIAL:

• 195 million tons with 0.6% ofequivalent copper.


LOWELL MINEAL EXPLORATIONEng. Jorge FierroExploration Vice President E-mail:[email protected] number: 00511 4403801

PRIV

ATE

MIN

ING

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

CHIM

BORAZO

C A Ñ A R

A Z U AY


P E R U

PA S TA Z A


LIMÓNINDANZA

GUALAQUIZA

Macas

SAN NUAN BOSCO

72

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

E L O R O

Machala


A Z U AY

L O J A

P E R U

Advanced exploration of a porphyry with high values of gold and copper. The project covers an area of 5,503 Ha.


Cangrejosminingproject

PROJECT STATUS:

✓ Advanced exploration stage with the following results:• [email protected]/tAu&0.11%

Cu from 14.5 m hole C11-30.• [email protected]/tAu&0.09%

Cu from 14.5 m hole C11-31.• [email protected]/tAu&0.11%Cu

from 70 m hole C11-33.• [email protected]/tAu&0.23%Cu



from 64 m hole C12-40.

POTENTIAL:

• 15.8Mta1.10g/tAuand0.20%Cu.


Mabelle Orbea G. E-mail: [email protected] Phone number : (593 9) 982 16187

GEOLOGICAL MODEL:


SANTA ROSA

Cangrejos mining project

73


PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

E L O R O

Machala


A Z U AY

L O J A

P E R U

Exploitation of a deposit com-prising a low sulphidation veins system with high content of gold. The area of the project is 9,189 Ha and has the NI 43-101 Technical Report.


Zarumaminingproject

PROJECT STATUS:

✓ Geology, geochemistry and drilling works have been carried out.

✓ Exploitation license available.

POTENTIAL:

• Inferred resources 3.7Mt @ 12.2g/t Au, 1.4M Oz Au (in situ).

• Measuredand indicated resourc-es 2.6Mt @ 12.8 g/t Au, 1.1MOz Au (in situ).



Andrés Ycaza PalaciosE-mail: [email protected] Phone number: 593-2-2508040

GEOLOGICAL MODEL:

PRIV

ATE

MIN

ING

ZARUMA

Zaruma mining project


74

Oil sector projects

75


Ecuadorstrivestoefficientlyexploititsenergyresourcesbypromotingtheexplorationofnewoilandgasfields,aswellas investment in the refiningofcrudeoilwiththe objective of guaranteeing autonomy in the con-sumption of derivatives.

In this new edition of the Investment Catalogue in Strategic Sectors, we are presenting 21 major projects in the oil sector, 17 of them focused on the explo-ration and extraction of exploration blocks. The rest of projects are focused on transportation (oil and multi-purpose pipelines) and infrastructure projects.

The Ecuadorian State fosters private participation in oil exploration and extraction through concessions, under a services modality with the payment of an agreed fee during a certain period of time, thus ensuring return for theinvestor,regardlessofoilpricesfluctuation.

Similar systems can be used for oil transportation through the payment of a fee for a certain period of time, after which investment is returned to the State. We have considered two main ways to participate in these projects:

1. Direct investment.2. Strategic public-private alliances.

Oil Sector

SUMMARY OF PROJECTS

Nº. Project name Location (province) Type Investment amount millions of USD)1 Block 20 Orellana Exploration and development 6,2602 Block 43 Orellana Exploration and development 5,6003 Block 86 Pastaza Exploration and development 1,7204 Block 31 Orellana Development 6685 Block 78 Morona Santiago Exploration and development 1906 Block 87 Morona Santiago Exploration and development 1907 Block 81 Pastaza Exploration and development 1858 Block 84 Pastaza Exploration and development 1309 Block 76 Pastaza and Morona Santiago Exploration and development 9210 Block 77 Morona Santiago Exploration and development 9211 Block 80 Pastaza Exploration and development 9212 Block 29 Napo and Orellana Exploration and development 6013 Block 22 Pastaza Exploration and development 5014 Block 70 Pastaza and Morona Santiago Exploration and development 4015 Block 71 Morona Santiago Exploration and development 4016 Block 72 Morona Santiago Exploration and development 4017 Block 73 Morona Santiago Exploration and development 4018 “Quinindé-Pacific EsmeraldasandManabí Crudeoiltransportation 650 Refinery”oilpipeline19 “ElAromo”terminaland ManabíandSantaElena Infrastructureforoilderivatives 330 “ElAromo-Monteverde” storageandtransportation multipurpose pipeline20 Facilities for hydrocarbon Santa Elena and Guayas Infrastructure for oil derivatives 165 operations in Monteverde storage and transportation 21 Projects for the Optimization Amazon region Optimization 400 of Electric Generation and EnergyEfficiency,OGE&EE TOTAL 17,034

Source: Ministry of Natural Non-Renewable Resources

OIL

76

Explorationanddevelopmentofblock20(Pungarayacufield)

Exploration and development of the block, where the quality of crude oil quality should be improved through the use of the most suitable technical pro-cedure for production in this field.

The area covered is of approx-imately 110,000 Ha, of which Pungarayacu field occupies 65,000 Ha.

Location: Province of Orellana

PROJECT STATUS:

✓ 26 wells drilled.

✓ Seismic studies.

✓ Located at approximately 40 km of the main SOTE and OCP

pipelines.

✓Crossedbyfirst-orderpavedmainroads.

POTENTIAL:

• POES(Originaloilinsitu)between5 and 12 billion barrels of oil.

• Estimated recovery of morethan 800 million barrels of oil in resources.

• Crude oil between 8 and 10APIdegrees.


6,260 MMUSD

Exploratory plan 60 MMUSD.Development plan6,200 MMUSD.

MODALITY OF INVESTMENT: • Directinvestment.• Strategicpublic-privatealliances.

MODELAJE DEL PROYECTO

S U C U M B I O S

P I C H I N C H A

CO

TO

PA

XI

T U N G U R A H U A

PA S TA Z A

O R E L L A N A

N A P O

Tena

S.O.T.E

Block 20

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0º

QUITO

Guayaquil

0 50 100 km

77


PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

Explorationanddevelopmentofblock43(fields:Ishpingo,TiputiniandTambococha)

Exploration and development of the block in an area of approxi-mately 190,000 Ha. Investments include permits, 10 platforms, flow lines, process plants, and other facilities necessary for project implementation, as

well as drilling and completion of 276 wells, change of zones and duals, and other minor investments.


PROJECT STATUS:

✓ Basic and detail engineering.

✓ Environmental impact studies.

✓ Environmental permits.

✓ Service orders.

✓ Purchase orders.

✓BasesforIPC,flowline.

POTENTIAL:

• Therearesevenexplorationwells.• Existingreserves:920millionbar-

rels of oil.


5,600 MMUSD.

Exploration plan and 3D seismicstudies: 35 MMUSDDevelopment plan: 5,565 MMUSD



PA S TA Z A

S U C U M B I O S

P E R U

N A P O

Francisco de Orellana

Coca river

Napo river

Yasuni National Park

PHASE I Tiputini

Tambacocha

Ishpingo

PHASE II

PHASE III

Napo river

O R E L L A N A

Block 43

OIL

78

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

P E R U


TU

NG

UR

AH

UA

N A P OO R E L L A N A

Block 86

Puyo PA S TA Z A

87

848379

80

81

85

82

75

74

28

70

22 17

Intangible zone

Explorationanddevelopmentofblock86

Exploration and development of block located south of the Oriente basin in the southern border of the Province of Pastaza.

Location: Province of Pastaza

PROJECT STATUS:

✓ Seismic and geological informa-tion to outline the exploration and development plan prepared by Gaffney,Cline&Associates.

POTENTIAL:

• 90 million barrels of proven re-serves of oil.

• Aproductionpeakof27,500bpd.• API degrees: between 10° and

23°.


1,720 MMUSD

Exploratory plan: 90 MMUSD.Development plan: 1,630 MMUSD.



79


PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

Developmentofblock31(fields:Obe,ApaikaSur,Minta,BoicaNorte,KuwataiandPimare)

Development and incorporation into production of new fields in Block 31, such as Obe, Apaika Sur, Minta, Boica Norte, Kuwatai and Pimare. Investments include

facilities, pipelines, 10 platforms, 44 wells, and environmental management plan.


PROJECT STATUS:

✓ 10 wells drilled in Apaika Field.

✓ 1 platform in Apaika Field.

✓ Production in Apaika Field started on October 4th, 2013.

✓ Cumulative production to date is 1.95 million barrels of oil.

✓ 688 km2 of 3D seismic studies in Block 31.

POTENTIAL:

• Resources: 129million barrels ofoil (P-90 Ryder Scott).

• Estimatedrecovery:morethan30million barrels of oil in resources.

• Crudeoilbetween12and18APIdegrees.


668 MMUSD.



OIL

Francisco deOrellana

O R E L L A N A

S U C U M B I O S

PA S TA Z A

N A P O

P E R U

YASUNINATIONAL PARK

Block 31

Obe

Apaika South

Boica North

Minta N

Minta S

Kuwatai

Pimare

80

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km


Exploration and development of the block with an area of 1,454 km², located west of the province of Morona Santiago and bounded with the Republic of Peru on the south.


PROJECT STATUS:

✓ 23 km of 2D seismic studies available.

✓ Aerogravimetry and aeromag-netometry information.

POTENTIAL:

• Located in oil trend 2 whichis related to oil fields such asPungarayacu, Oglán and Bermejo, which have been identified northof the Oriente basin.

• POTENTIAL:sootreservoirs.


190 MMUSD

Exploratory plan: 190 MMUSD.Developmentplan(tobedefined).



73

72

77

76

71

Block 78


Macas

C A Ñ A R

A Z U AY


PA S TA Z A

P E R U

T U N G U R A H A

CH I M BOR A ZO

81


PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km


Exploration and development of the block with an area of 1,535 km², located northwest of the Province of Pastaza, bounded on the north by the Yasuní National Park and on the west by the

Republic of Peru, northeast of the southeastern basin.

Location: Provinces of Pastaza and Morona Santiago

PROJECT STATUS:

✓ 217 km of 2D seismic lines available.

POTENTIAL:

• Located in oil trend 6, north ofwhich ITT (Ishpingo - Tiputini - Tambococha) structural axis is located, which has large reserves of oil, especially in M-1 and U reservoirs.

• POTENTIAL:sandstonereservoirsin M-1.


190 MMUSD




P E R U


TU

NG

UR

AH

UA


86

Puyo PA S TA Z A

Block 87

848379

80

81

85

82

75

74

28

70

22 17

Intangible zone

OIL

82

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km


Exploration and development of the block with an area of 1,305 km², located south-central of the Province of Pastaza in the central part of the southeastern basin.


PROJECT STATUS:



POTENTIAL:

• Locatedinoiltrend4onwhichoilfields such as Auca, Cononaco,Cachiyacu, Tiguino, Curaray, Capahuari, Tambo and others are located.

• POTENTIAL: T and U sandstonereservoirs.


185 MMUSD




P E R U


TU

NG

UR

AH

UA


86

Puyo PA S TA Z A

87

848379

80

Block 81

85

82

75

74

28

70

22 17

Intangible zone

83


PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km


Exploration and development of the block with an area of 1,700 km², located west-central of the Province of Pastaza in the eastern part of the southeastern basin.


PROJECT STATUS:


POTENTIAL:

• Located in oil trend 5 in whosetrain and to the north of south-east, importantoilfieldshavede-veloped which are currently in pro-duction such as: VHR, Capirón, Iro, Vinita, Capirón and ITT (not in production).

• POTENTIAL: reservoirs of M-1and U sandstone.


130 MMUSD




P E R U


TU

NG

UR

AH

UA


86

Puyo PA S TA Z A

87

Block 848379

80

81

85

82

75

74

28

70

22 17

Intangible zone

OIL

84

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km


Exploration and development of the block with an area of 1,950 km², located between the provinces of Morona Santiago and Pastaza, bordering south with blocks 77 and 78.

Location: Provinces of Morona Santiago and Pastaza

PROJECT STATUS:

✓ One well drilled: Cangaime-1.

✓ 193 km of 2D seismic data available.


POTENTIAL:

• Covers two hydrocarbon trends,mainly 2 and 3 oil trends.

• Oil trend 2 relates to oil fieldssuch as Pungarayacu, Oglán and Bermejo.

• Oiltrend3relatestotheocciden-tal play of the basin, aligned to Yuralpa, Villano and Moretococha fields.

• POTENTIAL:M-1andsoot reservoirs.


92 MMUSD




N A P O O R E L L A N A

PuyoPA S TA Z A

87

848379

80 86

81

85

82

75

74

28

22 17

Intangible zone

73

72

77

Block 76

Block 71

78M O R O N A S A N T I A G O

Macas

C A Ñ A R

A Z U AY


P E R U

T U N G U R A H A

CH I M BOR A ZO

70

85


PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km


Exploration and development of the block with an area of 1,992 km², located southwest of the Province of Morona Santiago and bordering south with the Republic of Peru.


PROJECT STATUS:

✓ 60 km of 2D seismic data.


POTENTIAL:

• Covers two hydrocarbon trends,mainly 2 and 3 oil trends.

• Oil trend 2 relates to oil fieldssuch as Pungarayacu, Oglán and Bermejo.

• Oiltrend3relatestotheocciden-tal play of the basin, aligned to Yuralpa, Villano and Moretococha fields, and to Situche field in thedirection to Peru.

• POTENTIAL:sootreservoirs.


92 MMUSD




73

72

Block 77

76

71

78


Macas

C A Ñ A R

A Z U AY


PA S TA Z A

P E R U

T U N G U R A H A

CH I M BOR A ZO

OIL

86

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km


Exploration and development of the block with an area of 1,557 km², located in the Province of Pastaza, in the central part of the southeast basin.


PROJECT STATUS:

✓ Three wells drilled:

- Bobonaza-1 (TD:-14.695 ft., most data are available).- Manati-1 (TD:-12.888 ft.). - Tigrillo-1 (TD:-12.741 ft., with presence of oil samples).



POTENTIAL:

• LocatedinoilTrend4,whichislo-cated north of the southeast, with oilfieldssuchasFrontera,Sacha,Shushuifindi, Auca, Tiguino andCuraray and, in Peru, Capahuari, Tambo, Carmen and Dorissa oil fields.

• POTENTIAL:sandstonereservoirsin Napo formation: T and U.


92 MMUSD




P E R U


TU

NG

UR

AH

UA


86

Puyo PA S TA Z A

87

848379

Block 80

81

85

82

75

74

28

70

22 17

Intangible zone

87


PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km


Exploration and development of the block located between the provinces of Napo and Orellana, in the north part of the southeast basin. The area of the block is 1,684.9 km².

Location: Provinces of Napo and Orellana

PROJECT STATUS:

✓ 2 wells: Huataracu-1 (TD: 5.815 ft.); and Cotapino-1 (TD: 7.058 ft.).

✓ 100 km of 2D seismic lines existing.


POTENTIAL:

• POTENTIAL:reservoirsofTsand-stone and soot.

• Western part with compressivedeformations with NNE-SSW ori-entation, related to tjhe Andean orogeny of the Miocene-Pliocene age.

• Central part with thick sedimentsof cretaceous to quaternary series.


60 MMUSD




OIL

N A P O

O R E L L A N A

Tena


Block 29

PA S TA Z A

S U C U M B I O S

P E R U

P I C H I N C H A

88

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km


Exploration and development of the block located in the western part of the Province of Pastaza, center-west of the Oriente basin.

The area of block 22 is1,754 km².


PROJECT STATUS:

✓ 3 wells with presence of oil sam-ples: Oglan Shell-1 (TD: 9.439 ft.); Vuano-1 (TD: 5.282 ft.); and Tzapino-1 (TD: 10.524ft.).

✓ There are 424 km of 2D seismic lines available.


POTENTIAL:

• Located in oil trend 3 andaligned with Yuralpa, Villano and Moretocochafields.

• Located near the deformationfront were structural closures of hydrocarbon interest can be seen, corresponding to Cretaceous and Pre-Cretaceous ages.

• POTENTIAL:reservoirsofTsand-stones and soot.


50 MMUSD




P E R U


TU

NG

UR

AH

UA


86

Puyo PA S TA Z A

87

848379

80

81

85

82

75

74

28

70

Block 22 17

Intangible zone

89


PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km


Exploration and development of the block with an area of 1,800 km², located between the provinces of Morona Santiago and Pastaza, bordering with the Andes Mountain Range.

Location: Provinces of Morona Santiago and Pastaza

PROJECT STATUS:

✓ Guallino-1 well (TD: 6.565 ft.) with presence of oil.

✓ There are 25 km of 2D seismic lines available.


POTENTIAL:

• Covers two hydrocarbon trends,mainly oil trends 1 and 2.

• Oil trend 1 relates directly to theSantiago basin.

• Oiltrend2relatestoPungarayacu,OglanandBermejooilfields.



40 MMUSD




TU

NG

UR

AH

UA

N A P O O R E L L A N A

PuyoPA S TA Z A

87

848379

80 86

81

85

82

75

74

28

22 17

Intangible zone

73

72

77

76

Block 71


Macas

C A Ñ A R

A Z U AY


P E R U

CH I M BOR A ZO

Block 70

OIL

90

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km


Exploration and development of the block with an area of 1,854 km², located in the central-north part of the Province of Morona Santiago, central-east of the

basin, near the Andes Mountain Range.


PROJECT STATUS:


POTENTIAL:

• Covers two hydrocarbon trends,mainly Oil trends 1 and 2.

• Oil trend 1 relates directly to theSantiago Basin and, in Peru, and has a high presence of hydrocar-bon prospectivity.

• Oil trend 2 is related to oil fieldssuch as Pungarayacu, Oglan and Bermejo identified north of theOriente basin.



40 MMUSD




73

7277

76

Block 71


Macas

C A Ñ A R

A Z U AY


PA S TA Z A

P E R U

T U N G U R A H A

CH I M BOR A ZO

91


PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km


Exploration and development of the block with an area of 1,876 km², located in the center of the Province of Morona Santiago, adjacent to the Andes Mountain

Range, and at the northern edge of the Santiago Peruvian basin.


PROJECT STATUS:


POTENTIAL:

• Covers two hydrocarbon trends,mainly Oil trend 1 and 2.

• Oil trend 1 relates directly to theSantiago basin which has import-ant discoveries in Peru and ex-tends to Ecuador.

• Oil trend 2 relates to oil fieldssuch as Pungarayacu, Oglan and Bermejo.

• Potential reservoirs of T sand-stone, soot and of the pre-creta-ceous age.


40 MMUSD




73

Block 7277

76

71

78


Macas

C A Ñ A R

A Z U AY


PA S TA Z A

P E R U

T U N G U R A H A

CH I M BOR A ZO

OIL

92

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km


Exploration and development of the block with an area of 1,980 km², located south of the Province of Morona Santiago, at the northern edge of the Santiago Peruvian basin.


PROJECT STATUS:


POTENTIAL:

• Covers two hydrocarbon trends,mainly oil trends 1 and 2.

• Oil trend 1 relates directly to theSantiago basin which has import-ant discoveries in Peru and ex-tends to Ecuador.

• Oil trend 2 relates to oil fieldssuch as Pungarayacu, Oglan and Bermejo.

• POTENTIAL:reservoirsofTsand-stone and soot


40 MMUSD




Block 73

72

77

76

71

78


Macas

C A Ñ A R

A Z U AY


PA S TA Z A

P E R U

T U N G U R A H A

CH I M BOR A ZO

93


PROJECT STATUS:

The conceptual engineering of the project has been completed. Engineering works were performed by the French company Beicip Franlab, and include:

• Pipeline route with sensitive spotslocalization (river crossings, roads).

• Technicalandhydrauliccharacter-istics of the pipeline.

• Characteristics of the pumpingstations that are needed.

• Estimate of Class 4 costs for in-vestment and operation (CAPEX and OPEX).

POTENTIAL:

• MainmeansofcrudeoiltransporttothePacificRefinery(200–300MBPD).


650 MMUSD (Margin of uncertainty from-20to+40%)



PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

Quinindé-RefineríadelPacífico”pipeline

Construction of an oil pipeline of approximately 243 km and a diameter of 36”, from the city of Quinindé in the Province of Esmeraldas, place where the two Ecuadorian pipelines (SOTE and OCP) cross, to the “Refinería del

Pacífico” refinery in the Province of Manabí.

Location: Provinces of Esmeraldas and Manabí

OIL


E S M E R A L D A S

S A N TA E L E N A

G U AYA S


Manta

Pump stationQuinindé

RDP

M A N A B Í

94

“ElAromo”terminaland“ElAromo-monteverde”multipurposepipeline

Construction of “El Aromo” terminal and of “El Aromo-Mon-teverde” multipurpose pipeline to store, distribute and transport derivatives produced in the “Refinería del Pacífico” refinery.

The project comprises the fol-lowing components:

Construction of storage facility of oil derivatives in El Aromo

• Storage tanks for LPG, gasoline, diesel and jet fuel.

• Facilities for the distribution of LPG, gasoline (regular and premium), diesel and jet fuel to be delivered through tank trucks.

Construction of El Aromo mul-tipurpose pipeline (“Refinería del Pacífico” refinery) - Monteverde

• Length: 140 km Diameter: 24”.• Most of the multipurpose

pipeline route shall use the right of way of “La Libertad – Manta” multipurpose pipeline.

Location: Provinces of Manabí and Santa Elena

PROJECT STATUS:

✓ Completed conceptual engineer-ing of the project.

✓Basic engineering (to be definedonce the construction of the “Refinería del Pacífico” refinerystarts).

POTENTIAL:

• Storage of the production of the“Refinería del Pacífico” refineryfor domestic and international distribution.

• “El Aromo – Monteverde” multi-purpose pipeline shall be the exit route of the finished products tobe distributed from Monteverde.


330 MMUSD(According to conceptual studies).



PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km


G U AYA S

M A N A B Í

El Aromo

Manta

Santa Elena

Monteverde

S A N TA E L E N A

E S M E R A L D A S

95


PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

Facilitiesforhydrocarbonoperationsinmonteverde

Optimization of the current infrastructure to improve the reception of imported hydro-carbons and the construction of new facilities that will serve as a basis for the future operation of the “Refinería del Pacífico” refinery.

The project includes the following components:

1. New Monteverde terminal, including the reception and dispatching system in the clean products dock.

2. New Monteverde – Pascuales multipurpose pipeline.

3. New Monteverde – La Libertad multipurpose pipeline.

4. Transformation of the Mon-teverde – Chorrillo oil pipeline in a multipurpose pipeline.

Location: Provinces of Santa Elena and Guayas

PROJECT STATUS:

✓ Completed conceptual engineer-ing of the project

✓ Basic engineering (under implementation)

POTENTIAL:

• Barrels of derivatives transportedper day:

- Monteverde - Pascuales multi-purpose pipeline: 101 MBPD.

- Monteverde - La Libertad multi-purpose pipeline: 34 MBPD

- Monteverde - Chorrillo multipur-pose pipeline: 70 MBPD.

• Optimizationofcleanproductstransportation system for the south of the country.

• Distributionofderivativesproducedinthe“RefineríadelPacífico”refinery


165 MMUSD(According to conceptual studies).



OIL


M A N A B Í

L O S R I O S

A Z U AY

C A Ñ A R

Santa Elena

Pacuales

Guayaquil

Monteverde

96

Z O N E 1

Optimizationofelectricgenerationandenergeticefficiency(OGE&EE)

Implementation of a program consisting of more than 120 projects grouped into the following categories: electric generation and distribution, col-lection and transportation of gas, improvements, and development research.

This is the first project in the world that, through a sectoral level program, integrates multiple stakeholders of the Ecuadorian oil sector, thus optimizing surplus of hydroelectric power in non-peak hours and meeting the requirements of the oil sector to reduce the use of non-renewable hydrocarbons.

PROJECT STATUS

✓ 174 MW of installed capac-ity (crude oil, associated gas and gas/crude oil).

✓ 149.7 km of distribution lines at 15.35 and 69 kV level (in opera-tion or being constructed).

✓ 6 gas management systems.

✓ Comprehensive environmental im-pact study of more than 25,000 km2 (pending approval).

POTENTIAL:

• 151,000kWingenerationfacilities.• 370kmof interconnectedelectri-

cal system of 35 and 69 KV.• 470kmof interconnectedelectri-

cal system of 138 KV.• Length of gas pipeline to be in-

stalled is of more than 100 km.• Scope: 17blocks, 56 fields, and

66 stations.


400 MMUSD.


• Engineering,Procurement,Construction, Operation and Maintenance with the payment of a rate (IPCOM-T)

• BuildOwnOperateandTransfer(BOOT).

• Turn-keyconstructionofdistribu-tionfacilitieswithfinancing.

12

31

67

15

64

65

61

45

55

66

7

18 48

47

60

54

56

57

52

58

53

62

Z O N E 2

Z O N E 4

Z O N E 3

97


Bioenergeticsector projects

BIOE

NERG

ETIC

98

In Ecuador, regulatory frameworks have been estab-lished for biofuels, which include reference objectives for their combination with fossil fuels. Various types of incentives are also provided to support biofuel industries. These measures are expected to stimulate asustainedofferofbiofuelsinthecomingyears.

The growing environmental concerns, especially with regard to greenhouse gases emissions and health considerations, are forcing the search for new energy sources and alternative ways to promote the global automotive fleet. Domestically produced biofuels areexpected to constitute a promising alternative.

The current biofuel demand in Ecuador is as follows:

1. Bioethanol for a E10 combination: 360 MM liters/year

2. Biomass for the industrial sector: 658 MMT/year

Security isoffered to investorswhowant to invest inbioenergetic projects through investment contracts and trade contracts. .

Participation in these projects has been definedthrough:

1. Private Direct Investment

In this new edition of the Catalogue of Projects of Strategic Sectors we present 2 Bioenergy projects.

Nº. Project name Location Type Investment amount (MMUSD)1 Locally produced bioethanol for the vehicles sector Nationwide Biofuel 9402 Biomass for the Ecuadorian Industrial Sector Nationwide Biomass 215 TOTAL 1,155

Bioenergetic sector

BIOENERGETIC SECTOR PROJECTS

Source: Coordinator Ministry of Strategic Sectors

99


Locallyproducedbioethanolforthevehiclessector

Production of bioethanol from sugar cane as an ecologic and financially feasible alternative with important potential for expansion. The use of bioethanol is directed to vehicles since this

is a gasoline oxygenant that causes important improvements in gasoline octane rating (10% of bioethanol and 90% of base gasoline).

PROJECT STATUS:

✓Implemented by 8% throughoutthe country

✓Currently, the industry offers 40MM liters/year with a combination of5%(E5).

POTENTIAL:

• Coverage target is 100% of thenational territory with the 10%combination (E10) of anhydrous bioethanol with traditional regular gasoline.

• Potential demand of 360 millionliters/year for a combination of (E10).


940 MMUSD

• Privateagriculturalinvestment(land, agricultural machinery, seeds, etc.): 580 MMUSD

• Privateindustrialinvestment(industrial distillery plant):

360 MMUSD



BIOE

NERG

ETIC

Guayaquil

C O L O M B I A

P E R U

0º

0 50 100 km

PA

CIF

IC

OC

EA

N

Quito

Esmeraldas

Portoviejo

Santa Elena

Machala

Loja

CuencaAzogues

GuarandaAmbato

Tena

Nueva Loja


Macas

Zamora

PuyoRiobamba

Latacunga

Babahoyo

Ibarra

Tulcán

Santo Domingo

100

BiomassfortheEcuadorianindustrialsector

Biomass production obtained from agricultural waste to be used for energy purposes in the

industry to replace the use of fossil fuels.

PROJECT STATUS:

✓ Currently, Petroecuador provides the industry sector with Fuel Oil 4, which implies generating expen-sive and polluting energy in this sector.

✓ Therefore, it is necessary to re-place the use of fossil fuels for power generation in the indus-tries with another alternative that involves the use of renewable en-ergy with biomass.

✓ Biomass must be of pellets type for efficient transportation andvolume.

POTENTIAL:

There is a potential demand of 658 thousand metric tons of biomass/year for the industrial sector.


215 MMUSD

• Investment in agricultural de-velopment for biomass produc-tion (land, agricultural machinery, seeds, etc.): 125 MMUSD

• Private industrial investment inpellets: 50 MMUSD

• Privateindustrialinvestment(user)in boilers: 40 MMUSD

MODALITY OF INVESTMENT

•Directinvestment.

Guayaquil

C O L O M B I A

P E R U

0º

0 50 100 km

PA

CIF

IC

OC

EA

N

Quito

Esmeraldas

Portoviejo

Santa Elena

Machala

Loja

CuencaAzogues

GuarandaAmbato

Tena

Nueva Loja


Macas

Zamora

PuyoRiobamba

Latacunga

Babahoyo

Ibarra

Tulcán

Santo Domingo

101


Electric sectorprojects

ELEC

TRIC

102

The Ecuadorian electric sector is made up by legal entities engaged in activities of electric generation, transmission, distribution, marketing and provision to the general public.

The Organic Law of Electric Energy Public Service of 2015 manifests that the State, through the Ministry of Electricity and Renewable Energy, could delegate, exceptionally, to private equity companies and com-panies of popular and solidary economy, participation in activities of the electric sector.

Electricity generation is carried out by state-owned, mixed economy and private companies (the latter through concessions for certain time after which investment returns to the State). The activity of elec-tricity transmission at national level is performed by the State, and private participation could take place under a service delivery model through the payment of a fee. The electricity distribution and commercialization system is managed through local public companies

that have been assigned geographic concession areas. Increasing electric coverage, ensuring reliability, quality ofsupplyandself-sufficiency,promotingefficientandrational use of energy and promoting regional energetic integration, are some of the goals that Ecuador is trying to achieve through the formulation and promotion of effective policies of the electric sector and throughprojects management.

In this new edition of the Investment Catalogue in Strategic Sectors, we present 13 infrastructure projects for electric generation. 11 of them are focused on hydroelectric generation projects and the other 2 in geothermal generation projects.

Two main ways to participate in these projects have been considered:

1. Direct investment2. Strategic public-private partnerships

Electric Sector

Source: Ministry of Electric and Renewable Energy

ELECTRIC SECTOR PROJECTS

Nº. Project name Generation Location Type Investment amount (mw) (province) (millions of usd)1 Río Santiago 3,600 Morona Santiago Hydroelectric 3,5002 Cardenillo 595.6 Azuay Hydroelectric 1,1353 Chontal 194 Pichincha, Imbabura Hydroelectric 5954 Angamarca Sinde 32.1 Cotopaxi Hydroelectric 525 La Merced de Jondachi 19 Napo Hydroelectric 526 Infiernillos 19.6 Loja Hydroelectric 407 Chinambí 9.9 Carchi Hydroelectric 308 Sardinas 6.6 Napo Hydroelectric 209 Caluma - Pasagua 4 Bolívar Hydroelectric 1210 Tigreurco 3.4 Bolívar Hydroelectric 1211 Huapamala 5.2 Loja Hydroelectric 1012 Chachimbiro 81 (Average) Imbabura Geothermal 16513 Chacana 40 (Average) Napo Geothermal 163 TOTAL 5,786

103


PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

RíoSantiagohydroelectricproject

Construction of a large hydro-electric plant located at the foot of the dam with a capacity of 3,600 MW to generate, on average, 15,790 GWh of clean energy per year.


PROJECT STATUS:

✓ Pre-feasibility studies.

✓Feasibility studies and final de-signs are being developed (avail-able by November 2015).

POTENTIAL:

• Flowrateof2,900m3/s.• Cover the energy demand of all

users of electric energy service in Ecuador.


3,500 MMUSD.



CH I M BOR A ZO

C A Ñ A R

A Z U AY


P E R U

PA S TA Z A


Upan

o riv

er

Paute river

LIMÓNINDANZA

TIWINTZA

Coangos river

Zamora river

Macas

Santiago river

ELEC

TRIC

104


A Z U AY

Cuenca Paute river

G U AYA S

L O J A


Mazar central

Molinocentral

Cardenilloproject

Sopladoraprojetc

SEVILLADE ORO

Cardenillohydroelectricproject

Construction of the Paute - Cardenillo hydroelectric plant which corresponds to the fourth phase of the Paute Integrated Complex, with a capacity of 595.6 MW to generate, on average, 3,355 GWh of clean

energy per year. The plant capacity factor is 65%.

Location: Provinces of Azuay and Morona Santiago

PROJECT STATUS


✓ Feasibility studies.

✓ Final design studies.

POTENTIAL:

• Flowrateof180m3/s.• Coverstheenergydemand nationwide.• Thisproject isgoingtobe imple-

mented directly downstream the Paute - Sopladora Hydroelectric Plant, with direct connection be-tween both of them, so the two willusethesameflow.


1,135 MMUSD.



PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

105


PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0º QUITO

Guayaquil

0 50 100 km

Construction of the hydroelectric project that captures water from Guayllabamba River, with a capacity of 194 MW to generate, on average, 1,044 GWh of clean energy per year, which will con-tribute to increase the energy offer of the Ecuadorian Electric System.

Location: Provinces of Imbabura and Pichincha

PROJECT STATUS


✓ Final design studies prepared by GEODATA – ASTEC).

✓ Detailed engineering drawings.

✓ Environmental licenses being processed.

POTENTIAL:

• Flowrateof180m3/s. • Covers 25% of the energy de-

mand of Empresa Eléctrica Quito (Quito Electric Company).


595 MMUSD.



Chontalhydroelectricproject

ELEC

TRIC

S U C U M B I O S

C O T O PA X I

C A R C H I

E S M E R A L D A S

S A N T O D O M I N G O D E L O S T S A C H I L A S

N A P O

Chontal

I M B A B U R A

Ibarra

Quito

P I C H I N C H A

106

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

S A N T O D O M I N G OD E L O S T S A C H I L A S

L O S R I O S

P I C H I N C H A

N A P O

T U N G U R A H U A

B O L Í V A R

C O T O PA X I

Latacunga

PANGUA

Moraspungo

Angamarca river

El Corazón

AngamarcaSindehydroelectricproject

Construction of the hydroelectric project that captures water from Angamarca and Sinde rivers, with a capacity of 32.1 MW to generate, on average, 182.8 GWh

of clean energy per year. Plant capacity factor is 65%.

Location: Province of Cotopaxi

PROJECT STATUS

✓ Study of social management and community relations.

✓ Final environmental impact study.


✓ Feasibility study.

POTENTIAL:

• Flowrateof14m3/s (Angamarca River) and 8.8 m3/s (Sinde River).

• Covers the energy demand of 2provinces.

• Reducedlossesforenergytrans-mission and improved quality of electric service in nearby con-sumption centers.


52 MMUSD.



107


PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

PROJECT STATUS





✓ Environmental licenses (being processed).

POTENTIAL:

• Flowrateof13.3m3/s.• Reducedlossesforenergytrans-

mission and improved quality of electric service quality in nearby consumption centers.

• Covers the energy demand ofabout 68 thousand users.


52 MMUSD.



Construction of the hydroelectric project that captures water from Jondachi River, with a capacity of 19 MW to generate, on average, 113.7 GWh of clean energy per

year. Plant capacity factor is 68%.

Location: Province of Napo

LaMerceddeJondachihydroelectricproject

Tena

N A P O

S U C U M B I O S

PIC

HIN

CH

A

C O T O PA X I

T U N G U R A H U A

PA S TA Z A

O R E L L A N A

ARCHIDONA

Jondachi river

ELEC

TRIC

108

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

Infiernilloshydroelectricproject

Construction of the hydroelectric project with a run-of-the-river power plant that captures water from Paquishapa River, with a capacity of 19.6 MW to generate,

on average, 122.5 GWh of clean energy per year. Plant capacity factor is 70%.

Location: Province of Loja

PROJECT STATUS






POTENTIAL:

• Flowrateof7.2m3/s.• Covers the energy demand of

about 184 thousand users in 25 cantons.



40 MMUSD.

Operation and maintenance costs:229 MSSD/year (Approx.).



SARAGURO

L O J A

Loja

P E R U

E L O R O

A Z U AY


SARAGURO

L O J A

Loja

Saraguro

109


PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

PROJECT STATUS:






POTENTIAL:



• Reducedlossesforenergytrans-mission and improved electricity service quality in nearby con-sumption centers.


30 MMUSD.




Construction of a hydroelectric project to capture water from Chinambí River, with an installed capacity of 9.9 MW to generate, on average, 45.2 GWh of clean and renewable energy annually,

with a plant capacity factor of 52%.

Location: Province of Carchi

ChinambíhydroelectricprojectE

SM

ER

AL

DA

S

C O L O M B I A

JIJÓN YCAAMAÑO

I M B A B U R A

Mira river

S U C U M B I O S

MIRA

Chinambí

Tulcán

ELEC

TRIC

110

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0º QUITO

Guayaquil

0 50 100 km

EL CHACO

SARDINAS

Tena

N A P O

S U C U M B I O S

P I C H I N C H A

CO

TO

PA

XI

T U N G U R A H U APA S TA Z A

O R E L L A N A

Sardinashydroelectricproject

Construction of a run-of-the-river hydroelectric project that captures water from Sardinas River, with a power of 6.6 MW to generate, on average, 42.8 GWh

of clean energy per year. Plant capacity factor is 73%.


PROJECT STATUS






POTENTIAL:

• Flowrateof16m3/s.

• Covers the energy demand ofabout 87 thousand users in 26 cantons.



20 MMUSD.




111


PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0º QUITO

Guayaquil

0 50 100 km

PROJECT STATUS:






POTENTIAL:

• Flowrateof12m3/s.• Covers the energy demand of




12 MMUSD.




Construction of a run-of-the-river hydroelectric project that captures water from Escaleras River, with a power of 4 MW to generate, on average, 27.2 GWh of clean energy per year. Plant capacity factor is 77%.


Caluma-Pasaguahydroelectricproject

B O L I V A R

GuarandaCALUMA

Pasagua

C O T O PA X I

L O S R I O S

G U AYA S

CH I M BOR A ZO

T U N G U R A H U A

ELEC

TRIC

112

Tigreurcohydroelectricproject

Construction of the run-of-the-river hydroelectric project that captures water from Payahua River, with a power of 3.4 MW to generate, on average, 22.4 GWh of energy per year. Plant capacity factor is 74%.


PROJECT STATUS:






POTENTIAL:





12 MMUSD.




B O L I V A R

Guaranda

C O T O PA X I

L O S R I O S

G U AYA S

CH I M BOR A ZO

T U N G U R A H U A

GUARANDA

Salinas

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0º QUITO

Guayaquil

0 50 100 km

113


PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

PROJECT STATUS:






POTENTIAL:





10 MMUSD. Operation and maintenance costs:228 MSSD/year (Approx.).



Construction of a run-of-the-river hydroelectric project that captures water from Huapamala River with a power of 5.2 MW to generate, on average, 29.7 GWh of energy per year, which

is equivalent to 10% of total electricity consumption in the Province of Loja. Plant capacity factor is 65%.

Location: Province of Loja

Huapamalahydroelectricproject

P E R U

E L O R O

A Z U AY

ZAMORAC

HIN

CHIP

E

L O J A

Loja

Manú

SARAGURO

ELEC

TRIC

114

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

Chachimbirogeothermalproject

This project is part of a set of hot springs and tempered springs of chlorinated-bicarbonated waters (above 61°C). Untapped potential is 81 MW.

Location: Province of Imbabura

PROJECT STATUS:

✓ Initial pre-feasibility studies (2011-2012): geological, geochemical and geophysical.

✓ Terms of reference for advanced pre-feasibility study recommend making a deep slim hole of 1,500 meters and to characterize the feasibility stage.

POTENTIAL:

• Theestimatedareawherethisre-source can be found is of 4.5 km2.

• Resourcecapacity:13-178MW range.

• Average size of the resource: 81MW.


165 MMUSD.



E S M E R A L D A S

C A R C H I

S U C U M B I O S

P I C H I N C H A

I M B A B U R A

URCUQUÍ

Chachimbiro

Urcuquí

Ibarra

115


PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

PROJECT STATUS:

✓ Initial pre-feasibility studies (2011-2012): geological, geochemical and geophysical.

✓ Terms of reference for advanced pre-feasibility study recommend making a deep slim hole of 600 meters and to characterize the feasibility stage.

POTENTIAL:

• Areasofgeothermalinterestiden-tifiedare:Chacana-Cachiyacu

20 km2) and Chacana-Jamanco (18 km2).

• Geothermalresourceofhightem-perature with a likely reservoir ex-tension of 2.6 km2.

• Resourcecapacity: 7.6 - 83 MW range.• Averagesizeoftheresource: 40 MW.


163 MMUSD.



This project is located in the center of the Chacana Plío-Qua-ternary volcanic complex. The area of geothermal interest covers about 100 km2 with potential to develop 40 MW.


Chacanageothermalproject

Tena

N A P O

S U C U M B I O S

P I C H I N C H A

C O T O PA X I

T U N G U R A H U APA S TA Z A

O R E L L A N A

QUIJOS

Cachiyacuarea

Chacanaproyect

Jamancoarea

ELEC

TRIC

116

Water sector projects

117


The adequate availability and quality of water is crucial for national development, and a necessary condition to maintain the population in good health and welfare conditions. Therefore, the supply and provision of water to meet the demand of 14 million of Ecuadorians is an imperative priority for the Government of the Cit-izen’s Revolution.

Policies have been implemented based on planning by hydrographic basins and enable controlling and managing in a decentralized manner, the conservation and protection of water resources

In this new edition of the Investment Catalogue in Strategic Sectors we are presenting 3 multipurpose water infrastructure projects that have been prioritized for the exploitation of water resources with a compre-hensive management approach. The implementation of the following projects: Tumbabiro, Tahuín, and Inter-vention, expansion and construction of the Hydraulic

Plan of Santa Elena Aqueduct, guarantees the pro-vision of water, which is a driving force for the life and development of Ecuador.

These 3 large multipurpose projects, with an investment of 727 million dollars, will enable to regulate water resources and to ensure the availability and supply of water for communities and socio-economic stake-holders that are pillars of the economic development, and to change the productive matrix. Eventually, 600,000Ecuadorianswillbedirectlybenefited,66,574hectares will receive irrigation water, and 2.3 MW will be available for power generation.

We have considered two main ways to participate in these projects:

1. Contracting with international public companies2.Biddingwithfinancing

Water Sector

WAT

ERNº. Project name Location Type Investment amount (Province) (Millions of USD)1 Intervention, expansion and Santa Elena, Guayas Comprehensive rehabilitation 470 construction of the Hydraulic and expansion Plan of Santa Elena Aqueduct (PHASE) - Phase 1 and 2

2 Tumbabiro Imbabura Multipurpose: irrigation 190 and human consumption 3 Tahuín El Oro Multipurpose: irrigation, 67 human consumption and electricity generation TOTAL 727

Source: Ministry of Water

WATER SECTOR

118

Rehabilitation of components and PHASE revamping to increase benefits and ensure water resources provision in the province of Santa Elena and in the town of Playas.

Daule pumping station is made up by two engine-pump groups, where untreated water transfer

from Daule River to the province and Santa Elena and the town of Playas begins.

Location: Provinces of Santa Elena and Guayas

Intervention,expansionandconstructionofthehydraulicplanofSantaElenaaqueduct(phase)–phase1and2

PROJECT STATUS:

✓ This project provides untreated water for human consumption to the province of Santa Elena and part of the province of Guayas, with a target population of 400,000 inhabitants and 15,000 irrigated hectares.



POTENTIAL:

• Water resource for human con-sumption in two provinces.

• Provision of water for irrigation(50,000 Ha.).


470 MMUSD.Phase 1 (Comprehensive Rehabilitation): 250 MMUSD.Phase 2 (Expansion): 220 MMUSD.

MODE OF CONTRACTING:

• Contractingwithinternational public companies. • Biddingwithfinancing.

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

L O S R I O S

C A Ñ A R

A Z U AY


G U AYA SS A N TAE L E N A

Guayaquil

Phase1

Phase2

119


PROJECT STATUS:

✓ Environmental license (March 2015).

✓Areaofinfluence:326Ha.

✓ Final studies developed by ESPE (CTT-ESPE-CECAI).

POTENTIAL:

• Waterresourcefor100,000inhabitants.

• Irrigation of 8,574 Ha. (includingYachay, the City of Knowledge, with 2,510 Ha.).


190 MMUSD.


• Contractingwithinternational public companies.• Biddingwithfinancing.

Provision of water for human consumption for 100,000 inhab-itants of urban and rural popu-lations in Urcuquí and Cotacachi cantons, Province of Imbabura, and provision of irrigation water for 8,574 Ha. The provision of water expected to supply the

project will be captured from Piñán, Pantaví, Gualoto and Cariyacu rivers. It is expected to build a dam that would store a volume of approximately 11.22 Hm3 of water.

Location: Province of Imbabura.

Tumbabiromultipurposeproject

WAT

ER

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

E S M E R A L D A S

C A R C H I

S U C U M B I O S

P I C H I N C H A

I M B A B U R A

URCUQUÍ

Urcuquí

Ibarra

Yachai

Piñán dam13.6 MMUSD23.7 HM3

North stream 23.6 MMUSD:Principal: 10.5 kmSecondary: 88 km

Conduction 89 MMUSD:17.22 km(3 channels, 3 siphons, 4 tunnels)

South stream 36.3 MMUSD:Principal: 7.6 kmSecondary: 29 km

Reserve tank1.2 MMUSD

120

Tahuínmultipurposeprojec

Ensure, for the next 30 years, provision of water for human consumption for 100,000 inhab-itants of the town of Arenillas and irrigation of 8,000 Ha. through the optimization of the current system, including the construction of a network of pipes under pressure, coating of all channels that supply 5,000 Ha. with irrigation water, and

addition of 3,000 new hectares through the construction of a pressurized system. Addi-tionally, the characteristics of the dam will be improved, thus enabling to generate 2.3 MW of hydroelectricity.

Location: Province of El Oro.

PROJECT STATUS:


✓Areaofinfluence:674Ha.

✓ Final studies developed by INASSA - Spain.

POTENTIAL:

• Waterresourcefor100,000inhab-itants of the town of Arenillas.

• Optimizeandimprovetheefficien-cy of the current irrigation system of 5,000 Ha.

• Achievecoverageof8,000Ha.in-corporating 3,000 new Ha.


67 MMUSD.


• Contractingwithinternationalpublic companies.

• Biddingwithfinancing.

PA

CIF

IC O

CE

AN

P E R U

C O L O M B I A

0ºQUITO

Guayaquil

0 50 100 km

E L O R O

Machala


A Z U AY

L O J A

P E R U Arenillas

New area of 3,000 Ha. to be incorporated to the project.

Current irrigation area is smaller than 5,000 Ha.

121


Telecommunicationssector project

TELE

COM

MUN

ICAT

IONS

122

Telecommunications and Information and Commu-nication Technologies (ICT) are essential to develop quality services and products in the economy, as well as to change the Productive Matrix.

In order to make that ICTs become a hub of Ecua-dorian economic development, Ecuador has made the decision to prioritize the development of technological skills and capacities of individuals, companies and institutions, and to provide all Ecuadorians with internet connectivity, regardless of their socioeconomic level.

Taken these priorities in mind, the deployment of tele-communications infrastructure, ICTs incorporation in all companies, the use of internet by individuals and dig-italization both in public and private sectors, are fun-

damental to encourage public and private investment to contribute in the development of an economy of knowledge, people-centered, inclusive and integrative.

In order to achieve these goals, public policies seek to create a suitable environment where all stakeholders of this sector converge to improve the capacities of citizens, investments, research, provision of services, and care provided to marginalized sectors, so that the quality of Ecuadorian’s life improves through ICTs.

We have considered two main ways to participate in this project:

1. Contracting with international public companies2. Biddingwithfinancing

Telecommunications Sector

Nº. Project name Location Type Investment amount (Millions of USD)1 Project of ICT laboratories and connectivity National Infrastructure 363 TOTAL 363

Source: Ministry of Telecommunications and Information Society

TELECOMMUNICATIONS SECTOR

123


ProjectofICTlaboratoriesandconnectivity

Implement laboratories with connectivity in public educa-tional institutions nationwide, enhancing access to information and communication technologies

to reduce the digital gap in rural and marginal urban areas through the promotion of their development and productivity.

PROJECT STATUS:

✓Technicalspecifications.

✓Projectprofile.

POTENTIAL:

• Implementationof8,000ICTlabo-ratories throughout Ecuador.

• ProvisionofpublicWI-FIservicein5,000 educational institutions.


363 MMUSD.


• Contractingwithinternational public companies.• Biddingwithfinancing.

TELE

COM

MUN

ICAT

IONS

C O L O M B I A

P E R U

0º

0 50 100 km

PA

CIF

IC

OC

EA

N

Guayaquil

Quito

Esmeraldas

Portoviejo

Santa Elena

Machala

Loja

CuencaAzogues

GuarandaAmbato

Tena

Nueva Loja


Macas

Zamora

PuyoRiobamba

Latacunga

Babahoyo

Ibarra

Tulcán

Santo Domingo

124

TECHNICAL DEFINITIONS

MINING

•Prospectionstudies:Consistoffield inspectionsin extensive areas, in which the following activities are conducted:−Geochemistry of sediments (taking samples in

ravines and rivers). −Geochemistry of rocks, taking samples to

determine the existence of minerals of economic interest.

−Geochemistry of soils, which is carried out inplaces where relevant results have been obtained both in the geochemistry of sediments and in the geochemistry of rocks.

−GeophysicalSurvey(non-destructivestudiesthatmeasure the electrical current, magnetism or gravity of the earth’s crust); this is done in sectors or areas where soils the geochemical study of the soil yielded positive results.

•ExplorationStudies: These studies are conducted in areas where prospection studies yielded positive results in thedefinitionofanareawithgeologicalpotential for the presence of minerals of economic interest. −Consists in drilling at different depths with

recovery of core samples (rock samples from within the depths of the earth).

−Exploration studies may consist of severalphases, depending on the results of each one of them. For example: initial exploration, advanced exploration, etc.

•Epithermaldeposits:These deposits are charac-terized by a polymetallic mineralization that takes place within 1 and 2 km depth from the earth surface, which are formed by hot hydrothermal fluids.

•Porphyry: This is a type of magmatic mineralization of low grade, high tonnage and irregular shape.

• Inferred resources: These are resources whose existence has been proven but whose magnitudes, in terms of volume, as well as their mineralogical characteristics are not known with complete pre-cision, so some of their dimensions or known geo-logical characteristics are inferred.

•Measuredresources: These are resources whose

existence has been demonstrated by geological studies that have enabled to measure their main dimensions, as well as the characteristics and laws of the mineral or mineralized bodies.

•Stripping ratio: This is a ratio that matches the amount of sterile material that will have to be removed in order to get a ton of usable material.

PROJECTS IN GENERAL

•Basic studies: These studies are a simplifieddescription of a project, they also define thepurpose and relevance of the project, presenting a first estimate of the activities and of the totalinvestment that will be required, as well as annual operational costs and, in the case of projects aimed to generate income, it takes into account the annual income and technical feasibility of alter-native solutions, discarding those that are not tech-nically feasible.

•Pre-feasibility: It is a study of preliminary assessment to determine the alternatives of an investmentproject in termsof technical, financial,economic, environmental, social and institutional viability.

•Feasibility: Considering the alternatives of the pre-feasibilitystudy,thefinalviabilityisdeterminedand the best alternative is chosen, based on which a study including complete technical, financial,environmental, institutional and economic evalu-ations of the project is carried out. The feasibility phaseleadstotakeadefinitivedecisionregardingthe project implementation.

•Basic engineering: Once feasibility has been approved and the decision to implement the project has been taken, the project conceptual design is prepared where the technical requirements that the project needs are established. In this stage costs arefine-tunedandthe implementationplanoftheinvestment project is prepared.

•Plantfactor:This factor is also called net capacity factor or load factor of an electric plant. The plant factor is the ratio between the actual power gen-erated by the electric plant during a period (usually a year), and the energy that could have been gen-erated if the plant had worked at full load during the same period, according to the nominal values of theequipmentidentificationplates.Thisisanindi-cation of the use of plant capacity over time.

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ABBREVIATIONS AND ACRONYMS

API American Petroleum InstituteBLEG Bulk Leach Extractable Gold (tool for geochemical sampling and analysis)ENAMI Empresa Nacional Minera (National Mining Company)HMC Heavy Mineral ConcentrateISDEFE Ingeniería de Sistemas para la Defensa de España (Systems Engineering for the Defense of Spain)INIGEMM Instituto Nacional de Investigación Geológico Minero Metalúrgico (National Institute for Geologica, Mining and Metallurgical Research)OCP Oleoducto de Crudo Pesado (Heavy crude oil pipeline)PHASE Plan Hidráulico Acueducto Santa Elena (Hydraulic Plan of Santa Elena Aqueduct)RDP RefineríadelPacífico(PacificOceanRefinery)SOTE Sistema de Oleoducto Transecuatoriano (Trans-Ecuadorian Oil Pipeline System)VHM VRC Hightech MiningAMEGOLDS.A. American Golding South S.ABIRAS.A Bienes Raíces S.A. (Real State Public Limited Company)CAPEX Capital expendituresOPEX Operating expenseCTT-ESPE-CECAI Centro de Transferencia de Tecnología - Escuela Superior Politécnica del Ejército - Centro de Capacitación Informática (Technology Transfer Center - Army Pollitecnic College - Computer Training Center)INASSA Sociedad Interamericana de Aguas y Servicios S.A. (Inter American Water and Services Society, Public Limited Company)

SYMBOLS AND MEASURES

Ag silverAu goldBpd barrels per day°C Celsius degreesCu copperFt feetg gramg/t grams per tonLPG liquid petroleum gasGwh gigawatt hourh hourHa. hectaresHm3 cubic hectometersHRC Hardness Rockwell C (scale of metals hardness)km kilometerkton kilotonKv kilovoltKW kilowattlbs poundsM thousandsm meterm2 square meterm3 cubic meterM3/s cubic meters per second

MBPD thousands of barrels per dayMM millionsMMBO million barrels of oilmsnm meters above sea levelMW megawattMWh megawatts per hour OSV offshoresupportvesselOz ouncesS secondT tonTD total deepness TOR terms of referenceTM metric tonsBOT Build Operate and TransferBHKP Bleached Hardwood Kraft PulpBSKP Bleached Softwood Kraft PulpBLEGs Bulk Leach Extractable GoldEPC Engineering, Procurement and ConstructionCRC cold rolled coilKton/year Kilotons per yearMMUSD Millions of dollarsMMMT Millions of metric tonsPSV Platform Supply VesselsVMS Volcanogenic Massive Sulphide

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Documents

Investment Catalogue in Strategic Sectors 2015 - 2017