China Eximbank provides $554.2 million buyer's credit loan for 487.8MW Sopladora Hydroelectric Power Plant Construction Project (Linked to Record ID#93432, #96294)

Project narrative

On January 27, 2011, China Eximbank and the Government of the Republic of Ecuador signed a confidential term sheet regarding the financing of the 487.8MW Sopladora Hydroelectric Power Plant Construction Project. The, on July 12, 2011, Government of the Republic of Ecuador submitted a loan application to China Eximbank for the 487.8MW Sopladora Hydroelectric Power Plant Construction Project. Several months later, on October 18, 2011, China Eximbank and the Government of the Republic of Ecuador signed a $571,363,360.21 buyer's credit loan (BCL) agreement (Contract No. 1410302052011211710) for the 487.8MW Sopladora Hydroelectric Power Plant Construction Project. The face value of the GCL was subsequently downsized to $554,251,553.96. The BCL carried the following terms: an interest rate of 6.35%, a grace period of 4 years, a maturity of 15 years, a 0.4% commitment fee, a 0.4% management fee ($2,285,453.40), and a 1.5% default (penalty) interest rate. It is backed by a credit insurance policy from Sinosure. The borrower was responsible for making 22 equal, semi-annual principal payments to the lender (on March 21 and September 21 of each year). The borrower was expected to use the proceeds of the BCL to finance approximately 85% of a $672,192,188.48 commercial contract between Corporación Eléctrica del Ecuador (CELEC E.P.) -- a state-owned holding company in Ecuador engaged in the generation, transmission, distribution, commercialization, import and export of electric power -- and a consortium consisting of China Gezhouba Group Company Limited and FOPECA, which was signed on October 20, 2010. Two initial disbursements worth $36,544,512.42 and $33,609,609.42, respectively, took place on October 8, 2012. The borrower made principal repayments worth $27,712,577 on March 21, 2017, $27,712,577 on September 21, 2017, $27,712,577 on March 21, 2018, $27,712,577 on September 21, 2018, $27,712,577 on March 21, 2019, $27,712,577 on September 21, 2019, $27,712,577 on March 21, 2020, and $36,026,351.50 on March 21, 2022. It did not make any principal repayments on the originally scheduled repayment dates of September 21, 2020, March 21, 2021, September 21, 2021, and September 21, 2022. The loan’s (principal) amount outstanding was $526,536,976.96 as of March 20, 2017, $498,826,399.96 as of September 20, 2017, $471,113,822.96 as of March 21, 2018, $443,401,245.96 as of September 21, 2018, $415,688,668.96 as of March 21, 2019, $387,976,091.96 as of September 21, 2019, $360,263,514.96 as of March 21, 2020, $360,263,514.96 as of September 21, 2020, $360,263,514.96 as of March 21, 2021, $360,263,514.96 as of September 21, 2021, $360,263,514.96 as of December 31, 2021, $324,237,163.46 as of March 21, 2022, $324,237,163.46 as of September 21, 2022, and and $324,237,163.46 as of November 30, 2022. The Sopladora hydroelectric power plant is located along the Paute River in Azuay. It is part of the Hydropaute cascade scheme in the Paute River in the south-east of the country. China Gezhouba Group Corporation was the contractor responsible for project implementation. CELEC E.P. was also involved in project implementation. Construction began on April 26, 2011 and the power generation completion ceremony took place on August 25, 2016. However, the China Eximbank loan (BCL) that supported this project has underperformed. It was rescheduled twice — once in September 2020 (as captured via Record ID#93432) and again in September 2022 (as captured via Record ID#96294).