Ecuador Hydro Set to Sign China Pact

Ecuador is expected to sign today a deal with China’s SynoHydro to build the 1,500MW Coca Codo Sinclair hydroelectric project, according to the company overseeing the project. The $2bn project will be funded by a $1.7bn 15-year loan from the Export-Import Bank of China and $300m from the Ecuadorean government, Italo Centenaro, general manager of Coca Codo Sinclair, tells LatinFinance. The China Exim loan has a 6.2% interest rate and a 5-year grace period to match the expected construction time, he says. Construction on the 10-unit project on the Coca River near the Colombian border should begin November 1. Centenaro explains this will be the first Chinese-built power project in Latin America. “Four companies bid, but only the two Chinese companies presented financing, and one of those withdrew, leaving SynoHydro,” he says, adding that SynoHydro also presents a solid hydroelectric construction track record. Electricity generated by the facility is expected to cover 75% of Ecuador’s demand. The project had originally counted on Argentine support, until Argentina’s Enarsa sold its 30% stake in the project to Ecuador’s government for $5.5m, according to local press reports.