QUITO, Feb. 25 -- The Export-Import Bank of China (China Exim Bank) will provide 198.24 million U.S. dollars in loan to finance an Ecuadorian higher education project according to an agreement the bank signed with Ecuadorian Finance Minister Fausto Herrera on Thursday.

The 20-year loan with a 3-percent interest rate will be used to fund the first phase of the Yachay City of Knowledge project, including its infrastructure, equipment, electricity and telecommunications, the Finance Ministry said in a statement.

Located in the northern province of Imbabura, Yachay is the country's first university specializing in experimental technological research.

Since its launch in March 2014, the project has been a high priority for Quito.

Yachay "is an essential element for the country to stop being an exporter of raw materials and become an exporter of knowledge and technology," Herrera said.

The minister praised the help provided by China Exim Bank for the project, saying this would strengthen cooperation between the two countries.

During Ecuadorian President Rafael Correa's state visit to China in January 2015, China and Ecuador outlined a series of projects to be financed by China Exim Bank.