Retirement Fund of teachers will finance the hydroelectric project of Sabanilla

Juan Jose Castello

According to figures managed by the Retirement Fund  of the Ecuadorian Teaching Association (FCME), around 5 800 teachers, pensioners and individuals, linked to teachers, are interested in investing approximately $11 million for the Sabanilla hydroelectric project, whose total cost amounts to $62 million.

The Sabanilla project is located in Zamora Chinchipe and will generate 30 megawatts (equivalent to about 600 000 lights turned on at the same time), will have a concession of 50 years, a contract of operation for 15 years with preferential rates and the State will have priority when  purchasing energy  ($ 0,0688 per kilowatt hour).

According to the President of the FCME, Juan José Castello, what remains to collect would be done this week, and said that the $44 million remaining will be placed in securities with a profitability of 9 per cent, through the stock exchange, and will be acquired by the FCME.

To ensure the funding the process will be managed in two stages: one that started in June and consists of signing requests to express willingness to invest; and the second, the formalization of the investment. “Every teacher must sign the accession to the trust and (deposit) account”, Castello said.

People interested can buy shares of $1000 minimum and there isn’t a maximum limit.

Monica Ayala, holder of the FCME in Pichincha, stated that they use to perform productive projects that generated housing construction and which are now focused on the generation of clean energy.