Villonaco III Advances With 112.1 MW Capacity and USD 200M-Plus Private Investment

Villonaco III has reached a visible equipment-delivery milestone: 30 of 57 wind-turbine blades have arrived in Ecuador through Puerto Bolívar and are scheduled for transport to Loja.

Project configuration

The project is planned for Cerro Huayrapamba, between Loja and Catamayo, with 19 wind turbines. Each turbine is designed to produce 5.9 MW at an installation altitude of approximately 3,000 meters above sea level.

The planned total capacity is 112.1 MW, which would make Villonaco III the largest wind project built in Ecuador. The movement of the blades to the project is expected to begin in mid-September, subject to the stated conditions.

The delivery milestone changes the project’s evidence base. It is no longer only a concession and financing proposition; large physical components are now entering the logistics chain. It remains, however, a construction-stage asset.

Capital structure and timing

Villonaco III represents more than USD 200 million in private investment under a 25-year concession described as requiring no public resources. The concession took effect on January 15, 2025, and construction began on July 7, 2025.

Reported physical progress reached 54.53% by June 2026. Commercial operation is targeted for the third quarter of 2027. The schedule is therefore still exposed to transport, civil works, turbine installation, grid connection, testing, and commissioning risk.

Financing is backed by BID Invest, Proparco, and FMO. That lender group is a positive signal for project bankability, but it is not a substitute for delivered output or a completed operating asset.

Local economic commitments

The project plans for 60% local labor and 50% local suppliers. After commercial operation begins, 12% of profits is expected to be reinvested in the direct areas of influence.

These commitments should be treated as monitoring variables. Their value for Loja and Catamayo will depend on definitions, reporting, procurement access, and whether the commitments persist beyond the construction peak.

Brief assessment

Villonaco III is an execution story with three separate milestones: component arrival, construction completion, and commercial operation. The first is now observable. The second remains in progress, and the third remains a target.

The investment case should therefore track more than megawatts. The next useful disclosures are blade transport, turbine installation, grid-connection status, updated physical progress, and confirmation of the commercial-operation schedule. The final tariff, contracted buyer, annual output, and delivered operating date are not established by the current milestone.

The signal is constructive but bounded: Ecuador is converting private capital into a large renewable project, while the remaining value depends on finishing the asset and connecting it reliably to the system.