PARA PROYECTOS

INVERSIN

C AT LO G O D E

ESTRATGICOS

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

CATLOGO DE INVERSIN PARA PROYECTOS ESTRATGICOS Jorge Glas Espinel Ministro de Coordinacin de los Sectores Estratgicos Wilson Pastor Ministro de Recursos Naturales No Renovables Esteban Albornoz Ministro de Electricidad y Energa Renovable Jaime Guerrero Ministro de Telecomunicaciones y de la Sociedad de la Informacin Walter Sols Secretario Nacional del Agua Investigacin y Produccin Ministerio de Coordinacin de los Sectores Estratgicos Diseo Ministerio de Coordinacin de los Sectores Estratgicos Impresin ------------Quito, enero 2012 Tercera Edicin Espaol - Ingls

Investment Catalogue for Strategic Projects

INDEX

Message from Jorge Glas, Coordinating Minister for Strategic Sectors Introduction Strategic Sectors Ecuador Invest in Ecuador Security for Foreign Investment Incentives for Foreign Public and Private Investment Opportunity to Finance Projects in Ecuador Contracting Method Technical De nitions Focal Point Electric Projects Hydro-electric Geothermic Distribution Water Projects Mining Projects Oil Projects Telecommunications Projects

2 4 5 6 7 8 9 10 11 12 14 15 25 29 33 44 55 66

Dear friends, The Government of the Republic of Ecuador has undertaken a responsible path in the process for the exploitation of natural non-renewable resources, that will insure for future generations a healthy and adequate environment for a good life of its inhabitants; that is, without inhibiting itself from a rational exploitation to generate economic resources that can be invested in social development, for the welfare of its people. The changes made by the Government have established the foundations for this process, and are based upon a deep legal reform, the fundamental instruments of which are the Constitution of the Republic approved in 2008, the National Plan for the Good Life 2009-2013, codes and laws approved, which generate an adequate and stable legal framework, combined with the incentives to attract national and foreign investment. The National Government has undertaken important investments in infrastructure, through important Projects, that have brought a dynamic character to the economy, the generation of employment, an increase in the availability of capital and future savings. Important elements of action have been de ned, that strive to diversify products and markets and establish Strategic Alliances with other nations, to promote the complementation of economies, productive links and the reduction of di erences based on recognizing them, in size and development. This strategic vision in action, rescues the role of the State as the rector, planner, regulator and organizer of economic activities, based on proactive and long term public policies, complemented with private investment, which constitute an accelerator of velopment. These policies have permitted, that during 2010, the Ecuadorian economy has consolidated its recovery, following the 2009 crisis, and it has grown at almost a 4%, and in 2011 experienced one of the highest rates of growth in Latin America, with a percentage greater than 5%. On the other hand, the rate of in ation during 2010 concluded with a 3,33%, a slightly lower percentage than that forecasted by the Government, and the lowest rate in three years. GDP per capita maintained its trend of growth and exceeded 4.000 dollars, a fact that transforms Ecuador into a country of middle-high income, in accordance with the international classi cation. The index of inequality is the lowest in the last decade. According to the Gini Coe cient, during the period between June 2007 and June 2011, it went from 0,52 to 0,47, as a result of the public policies implemented,

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which have permitted an improvement in the provision of goods and services in favor of the most vulnerable population. The National Government has invested in Strategic Sectors, which fall under the competence of this State Portfolio, over 9.500 million dollars between 2007 and 2011, of which 6.305 million correspond to the hydrocarbons sector; 1.500 million to the electric sector; 1.397 million to the telecommunications sector and 288 million to the water sector. The investment made by the State in large hydroelectric projects under construction, carried out during 2010 and 2011, will signi cantly modify the structure of the energy matrix of the country, going from a 48,33% of hydroelectric generation which was available in 2006, to a 93,53% projected for 2016. Among other things, this will contribute to a considerable reduction in CO2 emissions, by replacing thermal generation with hydroelectricity. This increase in hydroelectric generation, in the medium term, will transform Ecuador, into an electricity exporting country. In addition it will cover the internal demand for electricity with a renewable, clean, and friendly energy towards the environment and at a low cost. Regarding private investment, it is possible to highlight that on the basis of the renegotiation of oil contracts, new investments have been committed to in the order of 1.386 million dollars between 2011 to 2016; and by means of the process for the negotiation of contracts in large mining (large scale mining) it is estimated that new private investments in this sector will reach 5.160 million dollars during the period 2011 - 2016. What was a challenge is now a reality. As a result of this, I invite the International Community to be a part of this process, as has already been the case with governments, institutions, private and public companies that are presently investing in our country. I would like to express our sincere thanks to the countries, development agencies, nancing institutions and national and international companies that have shown their con dence in the policies implemented by the Government of Ecuador, a fact that has permitted us to achieve important investments in infrastructure, which have been fundamental to leverage the economic growth of our country

JORGE GLAS ESPINEL Coordinating Minister for Strategic Sectors 03

Introduction The construction of infrastructure works that cover the demands of 14 million Ecuadorians, the exploitation of the strategic areas of the Nation to generate resources that will bene t the entire population; as well as, obtaining the resources that will permit us to make these and other works a reality, are imperative for the Government of Economist Rafael Correa Delgado. This new edition of the Catalogue of Projects in Strategic Sectors brings up to date the investments and the nancing required for the coming years and strives to orient investors and nancial institutions regarding the opportunities that our country o ers to foreign investment. It also constitutes a guide for governments and companies of the world to become familiar with the areas open to investment, as well as the legal and economic conditions that Ecuador o ers to its investors. This document is a joint e ort of all the Ministries of State that govern the sectors of: Telecommunications, Hydrocarbons, Mining, Electricity and Renewable Energies, as well as the management of water resources, with which it has the purpose of strengthening the relations with the countries of the International Community, as well as generating new alliances with strategic partners to build great works of infrastructure and to take advantage of its natural resources.

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Strategic Sectors The Constitution of the Republic of Ecuador considers that energy in all of its forms, telecommunications, natural non-renewable resources, hydrocarbons, biodiversity, genetic heritage, the radioelectric spectrum and water, amongst other, constitute the strategic resources of a nation. The Ministry for the Coordination of Strategic Sectors proposes, coordinates, executes, articulates, supervises and evaluates the policies, projects, plans and inter-sector actions taken over by the Ministries of Natural Non-Renewable Resources, Electricity and Renewable Energy, Telecommunications and the National Secretariat for Water, to foster compliance with the National Plan for Development and to improve the quality of, life of citizens and additionally, executes speci c short and medium term programs that will enrich the new model for the sustainable development of the country. Vision Assure the rational, sustainable and e cient use of mining, hydrocarbons and water resources and the e ective rendering of public services of telecommunications and electricity that will generate economic revenues for the country and a social bene t under a minimum environmental impact, directed to guaranteeing the rights of the population. New Strategic Objectives: 1. 2. 3. BE SOVEREIGN, with self-su ciency in electric generation, the re ning of rivates, access to technologies of Information and Communication, and the management of water resources. BE PRODUCTIVE, providing quality in electric and telecommunications services; in the exploitation of hydrocarbons and minerals; and in the advantageous use of mater resources. BE INCLUSIVE, in the provision of public services accessible to all the population, and in the access to the exploitation of resources and the revenue produced by them.

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Ecuador Ecuador limits to the north with Colombia, to the south and east with Peru, and to the west with the Paci c Ocean. There are four distinct geographic regions. The rst corresponds to the Sierra or Andean highlands, which traverse the country from the north frontier with Colombia to the frontier with Peru in the south. The second region corresponds to the Coast, a coastal plain between the Andes and the Paci c. The third is the Amazon region, formed by the high basin of the Amazon River. The fourth is the Insular, constituted by the Galpagos Archipelago located 1.000 Km. form the continent, in the Paci c Ocean. The Ecuadorian territory is divided into 24 provinces, which are divided into cantons, and these in turn into urban and rural parishes. The o cial language is Spanish. Ecuador enjoys a very rich ora and fauna, a reason that has placed it in the list of the most mega diverse nations of the world.

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Invest in Ecuador Ecuador o ers a stable regulatory framework in which the potential for investments in its Strategic Sectors is leveraged, with opportunities to generate mutual bene ts and achieve the development of our countries. As a policy of the Government of Economist Rafael Correa Delgado, is the priority of providing to the public and private sectors, national and foreign the necessary tools that will permit a consolidation of the conditions required to attract investors. Transparency in Public Contracting. All public contracting processes are carried out by the National Institute for Public Acquisitions (INCOP in Spanish), by means of agile transparent, e cient and technologically up-to-date procedures which facilitate the tasks of control both for contracting entities as well as of suppliers and the citizenry in general. The National Institute for Public Acquisitions (INCOP) articulates, harmonizes and controls the execution of works that are carried out with public resources. For additional information please visit: www.compraspublicas.gob.ec

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Foreign Investment Security (Organic Code for Production) EQUALITY, of conditions and protection provided for investments and foreign and national investors. PROPERTY: Protection o ered to the property of investors (prohibition of all forms of con scation). RIGHTS: Liberty of production, marketing, imports and exports of goods and services, subject to that stipulated in the Constitution, laws and regulations established under existing legal norms. TAXATION: National and foreign investments are subject to the same Tax Regime. RESOLUTION OF CONFLICTS: In all contracts with foreign investors it is possible to agree on arbitration clauses to resolve controversies that may appear between the State and investors, such con icts may be submitted to international arbitration in accordance with the treaties signed by Ecuador. INVESTMENT CONTRACTS: Provide stability regarding tax incentives and those determined in the Production Code. OTHER: Free transfer abroad of pro ts and investments (once all tax obligations and other responsibilities are complied with in accordance with legal norms).

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Incentives for Foreign Public and Private Investment (Organic Code for Production) COMPLEMENTARY NATURE: Foreign investments shall have a direct complementary nature role in Strategic Sectors and those that have received priority in the economy that require investment and nancing. DEVELOPMENT AND PROMOTION, of Strategic Sectors: - Delegate to private initiative the investment in Strategic Sectors, in those cases established by the laws of each sector. - New Projects, of private enterprises for the generation of electricity, under an equal treatment concept regarding the mechanisms and conditions of guarantee and/or payment in the purchase of energy, as that applied to international transactions.

INCENTIVE BY SECTOR: Total exemption of Income Tax for ve years, for new investments, as of the operation phase in the sectors that contribute to the change of the energy matrix; strategic substitution of imports; promotion of exports and rural development. For the speci c case of Projects in Strategic Sectors, applicable to: - Renewable Energy, including bio-energy or energy from biomass (eolian, biogas, photovoltaic, geo-thermal and hydroelectric power plants of up to 50 MW of installed capacity, tide-generated energy, biomass and development of the production of bio-fuels). - Petrochemicals; production of substances on the basis or basic raw materials derived from gas and oil (production of rivates of hydrocarbons, manufacture of plastics in primary form and synthetic rubber, synthetic or arti cial bers, plastic products and articles, paints, varnishes, etc.)

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Opportunity to Finance Projects in Ecuador (Public Planning and Finances Organic Code) FINANCIAL AGREEMENT: Financing may establish stipulations related to the participation of companies in the country that provide loans for the execution of Projects, under the condition that the nancing is provided under pro table, advantageous or concessional terms for Ecuador. GUIDELINES TO OFFER: What is observed when evaluating an o er: Companies that enjoy an internationally recognized trajectory. An economic o er within market parameters. Quality of materials, equipment and service. Percentage of national aggregate.

If the o er includes nancing: Firm o er for nancing with an internationally recognized lending entity. Percentage of nancing over the amount of the investment. Terms of the credit. Period of grace for payment of capital (at least equal to the period for the execution of the project). - Rate of interest (all in cost).

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CONTRACTING MODALITIES

Projects in this Catalogue, in accordance with each sector and Government policies, may be undertaken through di erent contracting modalities, as follows: International Tenders: Contracting processes in which the interested parties are invited to present their technical and economic o ers to develop a project nanced by the Ecuadorian State. Tenders with nancing: Selection processes in which several interested parties are invited to present their technical and economic o ers to develop a project, additionally, accompanying the o er for nancing, supported with a letter of intention or other analogous documents issued by internationally recognized nancial institutions. Strategic Alliances: Includes several associative modalities between public or mixed Ecuadorian enterprises, for the development of speci c Projects. Included in this are alternatives such as association contracts, joint venture, creation of subsidiaries and other analogous forms. The selection of partners or allies may be done on a direct basis for national or foreign public companies; and for national or foreign private companies must be carried out through a special selection process. In any event, the associated Ecuadorian public enterprise must have a majority participation in such association. Direct Investment: Refers to those modalities in which public or private institutions, di erent from Ecuadorian public entities, agree to develop in a direct manner, under their exclusive responsibility and risk, a speci c project. Included in this mechanism are alternatives such as concessions (electricity, mining, telecommunications), contracts for the provision of speci c services (hydrocarbons), BOT, BOOT. Contracting with international public companies: Ecuadorian legislation permits direct contracting (commercial and for the development of Projects) with public or subsidiary enterprises of the International Community.

International Tenders Tenders with nancing

Strategic Alliances Direct Investment

Contracting with international public companies

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TECHNICAL DEFINITIONS (Glossary of Terms)

MINNING PROSPECTION STUDIES.- Consist of the reconnaissance of the eld in extensive areas, in which the following are performed: Geochemistry of sediments (taking samples in ravines and rivers). Geochemistry of rocks, which is taking samples to determine the existence of minerals of economic interest. Geochemistry of soils, which is carried out in places that have obtained relevant results both in the geochemistry of sediments, as in the geochemistry of soils. Geophysical Survey (non-destructive studies that measure the electric current, magnetism or gravity of the earths crust) this is done in sectors or areas in which the geochemical study of the soil gave positive results. EXPLORATION STUDIES.- These studies are performed in areas in which Prospecting Studies provided positive results when de ning an area with a geologic potential for the presence of minerals of an economic interest. Consists in performing drillings at di erent depths with the recovery of cores (rock samples from within the depths of the earth). Exploration studies may consist of various phases, which will depend on the results of each one of them. For example: initial exploration, advanced exploration, etc.

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TECHNICAL DEFINITIONS (Glossary of Terms)

PROJECTS IN GENERAL BASIC STUDIES.- This is a simpli ed description of the project; it de nes the objective and the importance of the project, presents a rst estimate of the activities and of the total investment that will be required, as well as annual operational costs. If the projects are aimed to income generation, it considers the annual income besides the technical viability of the solution of alternatives, rejecting the ones that are not technically feasible. PRE-FEASIBILITY.- It is a study of a preliminary assessment to determine the alternatives of an investment project in terms of technical, nancial, economic, environmental, social and institutional viability. FEASIBILITY.- It starts from the di erent alternatives established in the Pre-feasibility study and nal viability is determined when the best alternative is chosen and upon this a study is made which includes a complete technical, nancial, environmental, institutional and economic assessment. The Feasibility phase leads to the taking of a nal decision to execute the project. BASIC ENGINEERING.- Once the Feasibility stage has been approved and the decision to execute the project has been taken, there is a conceptual design where the technical requirements that the projects needs are established. In this stage there is a ne-tuning of costs and an execution plan of the investment project is drafted.

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FOCAL POINT
Direction of International Management Ministerio Coordinador de los Sectores Estratgicos dginternacional@sectoresestrategicos.gob.ec Telephone: (593-2) 2260670

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ELECTRIC

PROJECTS

Increase the coverage of electric services, assure reliability and quality of the service as well as self-su ciency; promote the e cient and rational use of energy and develop regional energy integration, are some of the objectives that Ecuador strives to reach through the formulation and promotion of an e ective policy in the electric sector and the management of Projects.

EL EC TR IC P R O JEC TS

Name of the Project | HYDROELECTRIC PROJECT TORTUGO

GOVERNING ENTITY SCOPE AND LOCATION

Ministry of Electricity and Renewable Energy Provinces of Pichincha and Imbabura

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

Technical Data LEVEL OF STUDIES Financial Indicators FINANCING REQUIRED CONTRACTING METHOD USD 375000.000 Direct Investment. Tenders with nancing. Contracting with international public companies. Engineering and Final Designs.

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EL EC TR IC P R O JEC TS

Name of the Project | HYDROELECTRIC PROJECT CHESPI GOVERNING ENTITY SCOPE AND LOCATION Ministry of Electricity and Renewable Energy Provinces of Pichincha and Imbabura

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

Technical Data LEVEL OF STUDIES Engineering and Final Designs.

Financial Indicators FINANCING REQUIRED CONTRACTING METHOD USD 755000.000 Direct Investment. Tenders with nancing. Contracting with international public companies.

EL EC TR IC P R O JEC TS

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EL EC TR IC P R O JEC TS

Name of the Project | HYDROELECTRIC PROJECT CHONTAL

GOVERNING ENTITY SCOPE AND LOCATION

Ministry of Electricity and Renewable Energy Provinces of Pichincha and Imbabura

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

Technical Data LEVEL OF STUDIES Engineering and Final Designs.

Financial Indicators FINANCING REQUIRED CONTRACTING METHOD USD 425800.000 Direct Investment. Tenders with nancing. Contracting with international public companies.

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Name of the Project | HYDROELECTRIC PROJECT CHIRAPI

GOVERNING ENTITY SCOPE AND LOCATION

Ministry of Electricity and Renewable Energy Provinces of Pichincha and Imbabura

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

Technical Data LEVEL OF STUDIES Engineering and Final Designs.

Financial Indicators FINANCING REQUIRED CONTRACTING METHOD USD 362400.000 Direct Investment. Tenders with nancing. Contracting with international public companies.

EL EC TR IC P R O JEC TS

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EL EC TR IC P R O JEC TS

Name of the Project | HYDROELECTRIC PROJECT LA MERCED DE JONDACHI

GOVERNING ENTITY SCOPE AND LOCATION

Ministry of Electricity and Renewable Energy Province of Napo

DESCRIPTION: Construction of civil engineering works, electro-mechanical and the interconnection to the National Interconnected System (SIN in Spanish), of the Hydroelectric Project of 18,25 MW which is expected will generate 121,4 GW/year through two Francis type turbines.

Technical Data LEVEL OF STUDIES Financial Indicators FINANCING REQUIRED CONTRACTING METHOD USD 38270.000 Direct Investment. Tenders with nancing. Contracting with international public companies. Engineering and Final Designs

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Name of the Project | HYDROELECTRIC PROJECT RO ZAMORA

GOVERNING ENTITY SCOPE AND LOCATION

Ministry of Electricity and Renewable Energy Province of Morona Santiago

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

Technical Data LEVEL OF STUDIES Basic Studies.

Financial Indicators FINANCING REQUIRED CONTRACTING METHOD UNDETERMINED. Direct Investment. Tenders with nancing. Contracting with international public companies.

EL EC TR IC P R O JEC TS

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EL EC TR IC P R O JEC TS

Name of the Project | HYDROELECTRIC PROJECT CARDENILLO

GOVERNING ENTITY SCOPE AND LOCATION

Ministry of Electricity and Renewable Energy Provinces of Azuay and Morona Santiago

DESCRIPTION: The Paute Cardenillo power plant corresponds to the fourth stage of the Integral Paute Complex , that uses the waters that have passed through the turbines of the Paute-Sopladora power station and is located on the right margin of the Paute River, between elevation contours 925 and 525 a.s.l., approximately. Power rating 400 MW.

Technical Data LEVEL OF STUDIES Basic Studies.

Financial Indicators FINANCING REQUIRED CONTRACTING METHOD USD 507000.000 Strategic Alliances. International Tenders. Contracting with international public companies.

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Name of the Project| HYDROELECTRIC PROJECT BAEZA

GOVERNING ENTITY SCOPE AND LOCATION

Ministry of Electricity and Renewable Energy Province of Napo

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

Technical Data LEVEL OF STUDIES Pre-feasibility studies.

Financial Indicators FINANCING REQUIRED CONTRACTING METHOD USD 89900.000 Direct Investment. Tenders with nancing. Contracting with international public companies.

EL EC TR IC P R O JEC TS

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EL EC TR IC P R O JEC TS

Name of the Project | HYDROELECTRIC PROJECT ANGAMARCA SINDE

GOVERNING ENTITY SCOPE AND LOCATION

Ministry of Electricity and Renewable Energy Province of Cotopaxi

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

Technical Data LEVEL OF STUDIES Basic Studies.

Financial Indicators FINANCING REQUIRED CONTRACTING METHOD USD 51900.000 Direct Investment. Tenders with nancing. Contracting with international public companies.

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Name of the Project | GEOTHERMAL PROJECT CHACANA

GOVERNING ENTITY SCOPE AND LOCATION

Ministry of Electricity and Renewable Energy Province of Napo

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

Technical Data LEVEL OF STUDIES Pre-feasibility studies.

Financial Indicators FINANCING REQUIRED CONTRACTING METHOD USD 185000.000 Direct Investment. Tenders with nancing. Contracting with international public companies. Strategic Alliances.

EL EC TR IC P R O JEC TS

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EL EC TR IC P R O JEC TS

Name of the Project | GEOTHERMAL PROJECT CHACHIMBIRO

GOVERNING ENTITY SCOPE AND LOCATION

Ministry of Electricity and Renewable Energy Province of Imbabura

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

Technical Data LEVEL OF STUDIES Pre-feasibility studies.

Financial Indicators FINANCING REQUIRED CONTRACTING METHOD USD 162500.000 Strategic Alliances. International Tenders. Contracting with international public companies.

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Name of the Project | GEOTHERMAL PROJECT CHALPATN

GOVERNING ENTITY SCOPE AND LOCATION

Ministry of Electricity and Renewable Energy Province of Carchi

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

Technical Data LEVEL OF STUDIES Basic and Prospecting Studies.

Financial Indicators FINANCING REQUIRED CONTRACTING METHOD USD 175000.000 Direct Investment. Tenders with nancing. Contracting with international public companies. Strategic Alliances.

EL EC TR IC P R O JEC TS

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EL EC TR IC P R O JEC TS

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

GOVERNING ENTITY SCOPE AND LOCATION

Ministry of Electricity and Renewable Energy Province of Carchi (Ecuador) Department of Nario (Colombia)

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

Technical Data LEVEL OF STUDIES Basic and Prospecting Studies.

Financial Indicators FINANCING REQUIRED CONTRACTING METHOD USD 150000.000 Direct Investment. Tenders with nancing.

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

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

GOVERNING ENTITY SCOPE AND LOCATION

Ministry of Electricity and Renewable Energy Everywhere in Ecuador

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

Technical Data LEVEL OF STUDIES Engineering and Final Designs.

Financial Indicators FINANCING REQUIRED CONTRACTING METHOD USD 126495.000 International Tenders. Tenders with nancing. Contracting with international public companies.

*According to the business plan.

EL EC TR IC P R O JEC TS

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EL EC TR IC P R O JEC TS

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

GOVERNING ENTITY SCOPE AND LOCATION

Ministry of Electricity and Renewable Energy Everywhere in Ecuador

DESCRIPTION: Implementation of Projects designed to improve the quality level of electric services, increase coverage and assist in the reduction of technical losses in the electric distribution systems in the following functional stages: LS: Sub-transmission Lines SE: Sub-stations CP: Primary Circuits TD: Distribution Transformers RS: Secondary Networks RD: Distribution Networks AC: Service Connections ME: Meters IG: General Investments. Technical Data LEVEL OF STUDIES Engineering and Final Designs.

Financial Indicators FINANCING REQUIRED CONTRACTING METHOD USD 348424.050 International Tenders. Tenders with nancing. Contracting with international public companies.

*According to the business plan.

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Name of the Project | 500 kV TRANSMISSION LINE SYSTEM PROJECT

GOVERNING ENTITY SCOPE AND LOCATION

Ministry of Electricity and Renewable Energy Provinces of Sucumbos, Pichincha, Los Ros, Guayas and Azuay.

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

Technical Data LEVEL OF STUDIES Con guration Studies (2010). Final design of the system (2012).

Financial Indicators FINANCING REQUIRED CONTRACTING METHOD USD 450000.000 Direct Investment. Tenders with nancing.

EL EC TR IC P R O JEC TS

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Project Summary

NAME La Merced de Jondachi Baeza Angamarca Sinde Tortugo Chespi Chontal Chirapi Ro Zamora Cardenillo Chacana Chachimbiro Chalpatn
Tu o Chiles Cerro Negro

LOCATION PROVINCE Napo Napo Cotopaxi Pichincha, Imbabura Pichincha, Imbabura Pichincha, Imbabura Pichincha, Imbabura Morona Santiago Morona Santiago Napo Imbabura Carchi Carchi Nario Everywhere in Ecuador Everywhere in Ecuador Sucumbos, Pichincha, Los Ros, Guayas and Azuay.

TYPE OF PROJECT

STARTING DATE OF CONSTRUCTION (Estimated) January 2013 October 2013 March 2013 February 2013 April 2013 August 2012 August 2012 January 2015 January 2014 January 2015 January 2015 January 2015 January 2015 2012 2012 January 2013

AMOUNT OF INVESTMENT $ 38270.000 $ 89900.000 $ 51900.000 $ 375000.000 $ 755000.000 $ 425800.000 $ 362400.000 $ 2.760000.000 $ 507000.000 $ 185000.000 $ 162500.000 $ 175000.000 $ 150000.000 $ 126495.000 $ 348424.050 $ 450000.000 $ 6.962689.050

ESTIMATED AMOUNT OF EQUIVALENT TON OF CO2 (MDL) 67.510 tCo 176.560 tCo 101.210 tCo 479.910 tCo 1112.200 tCo 575.230 tCo 538.530 tCo 4092.900 tCo 1279.000 tCo 254.800 tCo 254.800 tCo 254.800 tCo 254.800 tCo -------------------------------------------------------

Hydroelectric Hydroelectric Hydroelectric Hydroelectric Hydroelectric Hydroelectric Hydroelectric Hydroelectric Hydroelectric Geothermic Geothermic Geothermic Geothermic Distribution Distribution Distribution

PlanRep 2012 PMD 2012 Sistema de transmisin Lnea de 500 kV

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TOTAL

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WATERT S PROJEC
The promotion of these Projects strives to recover the guidance of the State, through policies, norms, control and de-concentration management of the conservation and protection processes policies of this resource, on the basis of a proper planning of hydrographic basins.

WATER P R O JEC TS

Name of the Project | FLOOD CONTROL IN MILAGRO

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

DESCRIPTION: Construction of an infrastructure to evacuate waters which are a product of the over owing of the Milagro and its tributaries, the Chirijo and Berln inlets, during extreme ooding that a ect the city of Milagro. Provide irrigation water during times of draught. Technical Data LEVEL OF STUDIES Feasibility Stuides.

Financial Indicators FINANCING REQUIRED CONTRACTING METHOD USD 154570.484 Tenders with nancing. Contracting with international public companies.

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Name of the Project | NUEVO PEDRO CARBO

GOVERNING ENTITY SCOPE AND LOCATION National Secretariat for Water Hydrographic Demarcation of Guayas (Province of Guayas)

DESCRIPTION: Diversion of waters from the Daule River to the parishes of Valle de La Virgen, Sabanilla, Cascajal, Cascol, Guale, Lascano, Las Caas, Bachillero and Las Saibas for the agricultural development of 25.000 hectares located at a middle level of the sub-basins of the Carbo and Colimes Rivers. Technical Data LEVEL OF STUDIES Pre-feasibility studies.

Financial Indicators FINANCING REQUIRED USD 154181.056

CONTRACTING METHOD

Tenders with nancing. Contracting with international public companies.

WATER P R O JEC TS

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WATER P R O JEC TS

Name of the Project | WATER DEVELOPMENT AND CONTROL PLAN FOR THE PROVINCE OF LOS ROS
GOVERNING ENTITY SCOPE AND LOCATION National Secretariat for Water Hydrographic Demarcation of Guayas (Provinces of Guayas and Los Ros)

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

Technical Data LEVEL OF STUDIES Basic Studies.

Financial Indicators FINANCING REQUIRED CONTRACTING METHOD USD 350000.000 Tenders with nancing. Contracting with international public companies.

36

Name of he Project | SHEATHING OF THE CERRO AZUL TUNNEL

GOVERNING ENTITY SCOPE AND LOCATION National Secretariat for Water Hydrographic Demarcation ofGuayas (Provinces of Guayas and Santa Elena)

DESCRIPTION: Sheathing of the Cerro Azul tunnel, in a length of 7 km, thus guaranteeing its stability throughout the entire section, providing the appropriate conditions for the stability of the inter-basin transfer system Daule Santa Elena in order to insure the supply of human consumption and irrigation waters for the province of Santa Elena and several parishes in Guayas. Technical Data LEVEL OF STUDIES Feasibility Stuides.

Financial Indicators FINANCING REQUIRED CONTRACTING METHOD USD 20221.839 Tenders with nancing. Contracting with international public companies.

WATER P R O JEC TS

37

WATER P R O JEC TS

Name of the Project | MULTI-PURPOSE PROJECT FOR CHALUPAS

GOVERNING ENTITY SCOPE AND LOCATION National Secretariat for Water Hydrographic Demarcation of Pastaza (Province of Pastaza)

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

Technical Data LEVEL OF STUDIES Feasibility Stuides.

Financial Indicators FINANCING REQUIRED CONTRACTING METHOD USD 270514.000 Tenders with nancing. Contracting with international public companies.

38

Name of the Project | MULTI-PURPOSE PROJECT FOR TUMBABIRO

GOVERNING ENTITY SCOPE AND LOCATION National Secretariat for Water Hydrographic Demarcation of Mira (Provinces of Carchi and Imbabura)

DESCRIPTION: Construction of the infrastructure for the supply of water for human consumption of the inhabitants of the communities of Tumbabiro, Urcuqu, San Blas and Imantag; irrigation waters for agricultural production and the generation of hydro-electricity. Technical Data LEVEL OF STUDIES Financial Indicators FINANCING REQUIRED CONTRACTING METHOD USD 180529.516 Tenders with nancing. Contracting with international public companies. Feasibility Stuides.

WATER P R O JEC TS

39

WATER P R O JEC TS

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

GOVERNING ENTITY SCOPE AND LOCATION National Secretariat for Water Hydrographic Demarcation of Mira (Provinces of Carchi and Imbabura)

DESCRIPTION: Construction of the infrastructure for the supply of water for human consumption of the inhabitants of the communities of Ibarra, Ambuqui, Pimampiro, Carpuela, Juncal, Chota y San Alfonso and irrigation destined to agricultural production. Technical Data LEVEL OF STUDIES Financial Indicators FINANCING REQUIRED CONTRACTING METHOD USD 75000.000 Tenders with nancing. Contracting with international public companies. Feasibility Stuides.

40

Name of the Project | MULTI-PURPOSE PROJECT FOR MATALA CASA VIEJA NAMBACOLA
GOVERNING ENTITY SCOPE AND LOCATION National Secretariat for Water Hydrographic Demarcation of Puyango (Province of Loja)

DESCRIPTION: Construction of the infrastructure necessary to provide drinking water, irrigation and hydroelectric generation. Construction includes the structure for the impounding of water from the Catamayo River that permits the derivation of the necessary ow to be directed to the turbo-pumps system, construction of the water storage and distribution systems for irrigation and human consumption, as well as the construction of a Mini-Station for Hydroelectric Energy of 3.4 MW. Technical Data LEVEL OF STUDIES Pre-feasibility studies.

Financial Indicators FINANCING REQUIRED CONTRACTING METHOD USD 21000.000 Tenders with nancing. Contracting with international public companies.

WATER P R O JEC TS

41

Name of the Project | MULTI-PURPOSE PROJECT FOR JAMA

GOVERNING ENTITY SCOPE AND LOCATION National Secretariat for Water Hydrographic Demarcation of Manab (Province of Manab)

DESCRIPTION: Construction of a dam in the upper part of the basin of the Jama River to provide water for human consumption to the populations of the Jama canton and Eloy Alfaro. Irrigation water for agricultural production in the high and low zones of the valley of the Jama River, as well as transferring water from the basin of the Briceo, Don Juan and San Ramn Rivers to irrigate 6.600 hectares. Hydroelectric generation of 10 MW. Technical Data LEVEL OF STUDIES Pre-feasibility studies.

Financial Indicators FINANCING REQUIRED CONTRACTING METHOD USD 213133.251 Tenders with nancing. Contracting with international public companies.

43

WATER P R O JEC TS

WATER P R O JEC TS

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

GOVERNING ENTITY SCOPE AND LOCATION National Secretariat for Water Hydrographic Demarcation of Puyango (Province of Loja)

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

Technical Data LEVEL OF STUDIES Engineering and Final Designs

Financial Indicators FINANCING REQUIRED CONTRACTING METHOD USD 12000.000 Tenders with nancing. Contracting with international public companies.

44

WATER P R O JEC TS

Name of the Project | MULTI-PURPOSE PROJECT FOR PUMA

GOVERNING ENTITY SCOPE AND LOCATION National Secretariat for Water Hydrographic Demarcation of Santiago (Province of Azuay)

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

Technical Data LEVEL OF STUDIES Pre-feasibility studies.

Financial Indicators FINANCING REQUIRED CONTRACTING METHOD USD 45000.000 Tenders with nancing. Contracting with international public companies.

42

Project Summary

NAME Flood Control in Milagro Nuevo Pedro Carbo Water Development and Control Prov. Los Ros Sheathing of the Cerro Azul Tunnel Multiple Purpose Chalupas Multiple Purpose Tumbabiro Multiple Purpose Puruhanta Pimampiro Yaguarcocha Multiple Purpose Matala Casa Vieja Nambacola Multiple Purpose Puma Multiple Purpose Jama Re-channeling of the Catamayo and Vilcabamba Rivers

LOCATION PROVINCE Guayas Guayas Guayas Los Ros

DEMARCATION Hydrographic Demarcation of Guayas Hydrographic Demarcation of Guayas Hydrographic Demarcation of Guayas

STARTING DATE OF CONSTRUCTION (Estimated) May 2013 October 2013 July 2013

AMOUNT OF INVESTMENT $ 154570.484 $ 154181.056 $ 350000.000

Guayas Pastaza Carchi

Hydrographic Demarcation of Guayas Hydrographic Demarcation of Pastaza Hydrographic Demarcation of Mira

October 2012 May 2013 June 2013

$ 20221.839 $ 270514.000 $ 180529.516

Carchi

Hydrographic Demarcation of Mira

June 2013

$ 75000.000

Loja Azuay Manab Loja

Hydrographic Demarcation of Puyango Hydrographic Demarcation of Santiago Hydrographic Demarcation of Manab Hydrographic Demarcation of Puyango

April 2013 May 2013 October 2013 2012

$ 20000.000 $ 45000.000 $ 213133.251 $ 12000.000

TOTAL

$ 1.495150.146

45

MINING
PROJECTS
Ecuador is a country that has a great potential for growth in the exploration and development of Deposits and minerals. The objective of this sector is to generate a sustainable development with public policies that facilitate, norm and promote investments in extractive activities for Ecuador. The mining sector represents an important source of resources for the development of the nation, as a leveraging factor for the generation of employment, and a factor for a balanced local and regional development.

Name of the Project | PILZHUM

GOVERNING ENTITY SCOPE AND LOCATION

National Mining Company EP Province of Caar

DESCRIPTION: Geologic exploration, Pre-feasibility and Feasibility Studies. The mineralization that exists is an argentiferous galena rich in silver, gold, lead and zinc. There exist mining works with approximately 600 m of galleries; geologic resources 500.000 ounces of silver. Technical Data LEVEL OF STUDIES Prospecting Studies. Determination of anomalous zones

Financial Indicators FINANCING REQUIRED CONTRACTING METHOD UNDETERMINED. Strategic Alliances.

MINING P R O JEC TS

47

MINING P R O JEC TS

Name of the Project | ANGAS

GOVERNING ENTITY SCOPE AND LOCATION

National Mining Company EP Province of Azuay

DESCRIPTION: Geologic exploration, Pre-feasibility studies and Feasibility. Prospect located within three areas of approximately 4.500 hectares each, a high sulfur content system with a potential for gold and silver. Geological Resources of 300.000 ounces of gold. Technical Data LEVEL OF STUDIES Prospecting Studies. Determination de anomalous zones

Financial Indicators FINANCING REQUIRED CONTRACTING METHOD UNDETERMINED. Strategic Alliances.

48

Name of the Project| SAN MIGUEL

GOVERNING ENTITY SCOPE AND LOCATION

National Mining Company EP Province of Bolivar

DESCRIPTION: Geologic exploration, Pre-feasibility studies and Feasibility. Sub-divided into six anomalous zones and within six areas of approximately 5.000 hectares each, mineralization and alteration related to porphyries of copper molybdenum with a geologic potential of 500 MT/0,6% of copper. Technical Data LEVEL OF STUDIES Financial Indicators FINANCING REQUIRED CONTRACTING METHOD UNDETERMINED. Strategic Alliances. Basic exploration studies in anomalous zones.

MINING P R O JEC TS

49

MINING P R O JEC TS

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

GOVERNING ENTITY SCOPE AND LOCATION

National Mining Company EP Province of Zamora Chinchipe

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

Technical Data LEVEL OF STUDIES Financial Indicators FINANCING REQUIRED CONTRACTING METHOD UNDETERMINED. Strategic Alliances. Basic exploration studies in anomalous zones.

50

Name of the Project | TELIMBELA

GOVERNING ENTITY SCOPE AND LOCATION

National Mining Company EP Province of Bolvar

DESCRIPTION: Geologic exploration, Pre-feasibility and Feasibility studies. Prospect and explore for copper, molybdenum in the mining concession of the Telimbela project located in the Bolivar Province.

Technical Data LEVEL OF STUDIES Financial Indicators FINANCING REQUIRED CONTRACTING METHOD UNDETERMINED. Strategic Alliances. Basic exploration studies in anomalous zones.

MINING P R O JEC TS

51

MINING P R O JEC TS

Name of the Project | LA TOLA NORTE

GOVERNING ENTITY SCOPE AND LOCATION

National Mining Company EP Province of Esmeraldas

DESCRIPTION: Geologic exploration, Pre-feasibility and Feasibility studies. Evaluate and certify the level of proven and probable reserves in the ferrous sand deposits (titanium magnetiferous) existing in the coastal zone of the Esmeraldas Province, in order to reach the level of Pre-feasibility, conceptual designs for exploitation and the design of the iron and steel industry. Technical Data LEVEL OF STUDIES Financial Indicators FINANCING REQUIRED CONTRACTING METHOD UNDETERMINED. Strategic Alliances. Basic exploration studies in anomalous zones.

52

Name of the Project | EL TORNEADO

GOVERNING ENTITY SCOPE AND LOCATION

National Mining Company EP Province of Bolvar and Los Ros

DESCRIPTION: Geologic exploration, Pre-feasibility studies and Feasibility. Prospect and explore for copper, molybdenum and gold in the mining concession of El Torneado located in the provinces of Bolvar and Los Ros which are in the central eastern part of the national territory. Technical Data LEVEL OF STUDIES Financial Indicators FINANCING REQUIRED CONTRACTING METHOD UNDETERMINED. Strategic Alliances. Basic exploration studies in anomalous zones.

MINING P R O JEC TS

53

Project Summary

NAME Pilzhum Angas San Miguel Cordillera de Nanguipa Telimbela La Tola Norte El Torneado

LOCATION PROVINCE Caar Azuay Bolvar Zamora Chinchipe Bolvar Esmeraldas

DEPOSIT Gold, silver, plomo and zinc Gold and silver Copper Gold, copper and molybdenum Copper and molybdenum Arenas Ferrosas

BEGINNING OF OPERATIONS (Estimated) 2012 2012 2012 2012 2012 2012 2012

AMOUNT OF INVESTMENT
UNDETERMINED UNDETERMINED UNDETERMINED UNDETERMINED UNDETERMINED UNDETERMINED UNDETERMINED

Bolvar and Los Ros Gold, copper and molybdenum

TOTAL

UNDETERMINED

54

Name of the Project | FIRST MINING TENDER GOVERNING ENTITY FINANCING REQUIRED
NAME LOCATION PROVINCE POTENCIAL G_M FGM INTRUSIVE

Mining Viceministry UNDETERMINED.

FGM VOLCANIC FGM METAMORPHIC ALLUVIAL ENVIRONMENT METALIC N EVIDENCES (OCCUR) MM LEVEL OF STUDIES

La Sofa Magdalena Ro Jalligua Balzapamba

Province of Sucumbos Province of Imbabura Province of Cotopaxi Province of Bolvar Provincia of Chimborazo Province of Caar Provinces of Morona Santiago and Azuay Province of El Oro Province of Zamora Chinchipe Province of Zamora Chinchipe

Medium High High High

Medium - High Medium Medium

Medium - Low

Partially Favorable Partially Favorable Partially Favorable Not Favorable

6 0 0 10

Prospection Prospection Prospection Prospection

Medium - High Medium - Low Medium - Low Medium - Low

Medium - Low High Medium - High Medium

Alao

Medium - High Medium - Low Medium

Medium

Partially Favorable

Prospection

Purubin San Miguel de Cuyes

High

Medium - High Medium

Medium - Low

Not Favorable

10

Prospection

Medium - High Medium

Medium

Medium - High Totally Favorable

Prospection

Paccha

High

Medium - High Medium

Medium - Low

Partially Favorable

Prospection

Yacuambi

High

Medium - Low Medium - High Medium - Low

Partially Favorable

Prospection

Namirez Alto

High

High

Medium - Low Medium - Low

Not Favorable

Prospection

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

MINING P R O JEC TS

55

MINING P R O JEC TS

Name of the Project | FIRST MINING TENDER Projects Location

La Sofa Magdalena Ro Jalligua Balzapamba Alao Purubin San Miguel de Cuyes Paccha Yacuambi Namirez Alto

56

OIL PROJECTS
Ecuador strives to e ciently exploit its energy resources by promoting the exploration of new oil and gas elds, as well as investment in the re ning of crudes, with the objective of guaranteeing autonomy in the consumption of derivates.

O IL P R O JEC TS

Name of the Project | EXPLORATION AND PRODUCTION OF HYDROCARBONS IN THE APAIKA AND NENKE FIELDS OF BLOCK 31 GOVERNING ENTITY SCOPE AND LOCATION Petroamazonas EP Province of Francisco de Orellana

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

Technical Data LEVEL OF STUDIES Certi cation of Reserves (Ryder Scott) Basic Engineering studies (Mustang Engineering International)

Financial Indicators FINANCING REQUIRED CONTRACTING METHOD USD 500000.000 Strategic Alliances.

58

Name of the Project | EXPLORATION AND PRODUCTION OF THE CHARAPA BLOCK GOVERNING ENTITY SCOPE AND LOCATION Secretariat for Hydrocarbons Province of Sucumbios.

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

Technical Data LEVEL OF STUDIES Studies: geological, geophysical, seismic 2D, and calculation of reserves in the Charapa eld.

Financial Indicators FINANCING REQUIRED CONTRACTING METHOD UNDETERMINED. Direct Investment. Contracting with international public companies.

O IL P R O JEC TS

59

O IL P R O JEC TS

Name of the Project | EXPLORATION AND PRODUCTION OF THE LAGO AGRIO BLOCK GOVERNING ENTITY SCOPE AND LOCATION EP Petroecuador Province of Sucumbos

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

Technical Data LEVEL OF STUDIES Studies: geological, geophysical, seismic 2D, and calculation of reserves.

Financial Indicators FINANCING REQUIRED CONTRACTING METHOD UNDETERMINED. Strategic Alliances.

60

Name of the Project | EXPLORATION AND PRODUCTION IN THE SOUTH-EAST OF ECUADOR GOVERNING ENTITY SCOPE AND LOCATION Secretariat for Hydrocarbons South-East of Ecuador (Provinces of Morona Santiago, Pastaza and part of Napo).

DESCRIPTION: Exploration and development of 21 blocks. Possibility of nding 690 MMBLS of POES, 5 blocks have seismic 2D data, and only one block has wells.

Technical Data LEVEL OF STUDIES Financial Indicators FINANCING REQUIRED CONTRACTING METHOD UNDETERMINED. Direct Investment. International Tenders. Contracting with international public companies. Studies: geological, geophysical, seismic 2D, drilling of wells.

O IL P R O JEC TS

61

O IL P R O JEC TS

Name of the Project | EXPLORATION AND PRODUCTION OF BLOCK 01 PACOA FIELD GOVERNING ENTITY SCOPE AND LOCATION EP Petroecuador Province of Santa Elena

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

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

Financial Indicators FINANCING REQUIRED CONTRACTING METHOD UNDETERMINED. Strategic Alliances.

62

Name of the Project | EXPLORATION AND PRODUCTION OF BLOCK 05 CUENCA PROGRESO GOVERNING ENTITY SCOPE AND LOCATION EP Petroecuador Province of Guayas

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

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

Financial Indicators FINANCING REQUIRED CONTRACTING METHOD UNDETERMINED. Strategic Alliances.

O IL P R O JEC TS

63

O IL P R O JEC TS

Name of the Project | OFF COAST EXPLORATION: METHANE HYDRATES GOVERNING ENTITY SCOPE AND LOCATION EP Petroecuador O -Shore

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

Technical Data LEVEL OF STUDIES Seismic 2D studies, de nition of potential areas for the accumulation of methane hydrates.

Financial Indicators FINANCING REQUIRED CONTRACTING METHOD UNDETERMINED. Strategic Alliances.

64

Name of the Project | PIPELINE PASCUALES - CUENCA GOVERNING ENTITY SCOPE AND LOCATION EP Petroecuador Provinces of Guayas and Azuay

DESCRIPTION: Construction of a multiple-product pipeline of 210 km, from the terminal of Pascuales in the province of Guayas to the terminal of Chaullabamba in Cuenca, Azuay Province. Pumping stations in Pascuales, El Chorrillo, La Troncal and the necessary intermediate stations to be determined in the hydraulic design of the multiple-product pipeline. Technical Data LEVEL OF STUDIES Feasibility Basic Engineering

Financial Indicators FINANCING REQUIRED CONTRACTING METHOD USD 280000.000 Tenders with nancing International Tenders Contracting with international public companies.

O IL P R O JEC TS

65

O IL P R O JEC TS

Name of the Project| REFINERA DEL PACFICO GOVERNING ENTITY SCOPE AND LOCATION Re nera del Pac co Eloy Alfaro Province of Manab

DESCRIPTION: The project contemplates the design and construction of a re nery with a processing capacity of 300 thousand barrels of crude oil per day, with a deep conversion technology, required for the production of gasoline, diesel, lique ed petroleum gas and petrochemical currents. Additionally, it contemplates facilities for the supply of electric energy, water, crude oil and the transport of products and maritime installations. Furthermore, the re nery must generate all of the electric power it needs, and will contribute with approximately 115 MW of electricity to the electric network connected to the National Interconnected System.

Technical Data LEVEL OF STUDIES Financial Indicators FINANCING REQUIRED CONTRACTING METHOD USD 12.800000.000 Strategic Alliances. Tenders with nancing. Contracting with international public companies. Basic Engineering (April 2012)

66

Project Summary

NAME Exploration and production of hydrocarbons of the Apaika and Nenke elds of Block 31 Exploration and production of the Charapa Block Exploration and production of the Lago Agrio Block Exploration and production in the Southeast of Ecuador Exploration and production of Block 01 - Pacoa Field Exploration and production of Block 05 - Cuenca Progreso O -shore Exploration: Methane Hydrates Pipeline Pascuales - Cuenca Re nera del Pac co

LOCATION PROVINCE Orellana

TYPE OF PROJECT

STARTING DATE OF CONSTRUCTION (Estimated) 2012

AMOUNT OF INVESTMENT $ 500000.000

Exploitation of crude oil

Sucumbos Sucumbos Southeast Ecuador Santa Elena Guayas Ecuadorian Coast Guayas y Azuay Manab

Exploitation of crude oil Exploitation of crude oil Exploitation of crude oil Exploitation of crude oil Exploitation of crude oil Exploration Crude oil transport Re ning

2012 2012 2012 2012 2012 2012 2012 2012

UNDETERMINED UNDETERMINED UNDETERMINED UNDETERMINED UNDETERMINED UNDETERMINED $ 280000.000 $ 12.800000.000

TOTAL

$ 13.580000.000

67

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

Name of the Project | | TERRESTRIAL DIGITAL TELEVISION (TDT) GOVERNING ENTITY SCOPE AND LOCATION Ministry of Telecommunications and the Society of Information Everywhere in Ecuador

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

Technical Data LEVEL OF STUDIES Feasibility Studies

Financial Indicators FINANCING REQUIRED USD 23000.000

CONTRACTING METHOD

Tenders with nancing. Contracting with international public companies.

T E L E CO M M U N I C AT I O N S P R O J E C TS

69

T E L E CO M M U N I C AT I O N S P R O J E C TS

Name of the Project | NATIONAL CENTER FOR PUBLIC DATA GOVERNING ENTITY SCOPE AND LOCATION Ministry of Telecommunications and the Society of Information City of Quito

DESCRIPTION: Implementation of the National Center for Public Data, principal and alternate, that includes civil and technological infrastructure, that will permit the Ecuadorian State have available a National Center for Public Data, that will provide technological information and communication services in a standardized manner, guaranteeing their e ciency, con dentiality, integrity, availability, compliance and reliability; optimizing the technological investment of the State and facilitating the implementation of electronic government. Technical Data LEVEL OF STUDIES Financial Indicators FINANCING REQUIRED CONTRACTING METHOD USD 70000.000 Direct Investment

Pre-feasibility Study.

70

Project Summary

NAME Terrestrial Digital Television National Center for Public Data

LOCATION PROVINCE Quito, Guayaquil and Cuenca Quito

DESCRIPTION RTVECUADOR National Network National Center for Public Data

STARTING DATE OF CONSTRUCTION (Estimated) July 2012 March 2012

AMOUNT OF INVESTMENT $ 23000.000 $ 70000.000

TOTAL

$ 93 000.000

71