Home / Business and Economy / Ecuador Cedes Control of Power Plant to China
Ecuador Cedes Control of Power Plant to China
10 Apr
Summary
- Ecuador transfers Coca Codo Sinclair plant operation to Power China.
- Ecuador receives $400 million from Power China via arbitration.
- Power China will manage the plant for 25 years under the deal.
Ecuador has announced that the operation and maintenance of its primary hydroelectric facility, the Coca Codo Sinclair plant, will be transferred to Power China. This significant agreement stems from an arbitration settlement, as confirmed by Ecuador's deputy minister of electricity, Javier Medina.
Under the terms of this accord, Ecuador is set to receive a total of $400 million from Power China. This financial package includes $200 million in immediate cash and an additional $200 million designated for future generation projects.
The deal stipulates that Power China will assume administration, operation, and maintenance responsibilities for the Coca Codo Sinclair plant for a duration of 25 years.
Although the plant was constructed by China's Sinohydro Corp, a subsidiary of state-owned Power China, and became operational in 2016, it has encountered recurrent technical challenges. Despite these issues, the Coca Codo Sinclair plant remains vital, supplying approximately 30% of Ecuador's total electricity demand.
