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

On October 18, 2011, China Eximbank and the Government of Ecuador signed a $571 million buyer's credit loan (BCL) agreement (Contract No. 1410302052011211710) for the 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, and a maturity of 15 years. It is backed by a credit insurance policy from Sinosure. The borrower was expected to use the proceeds of the BCL to finance approximately 85% of a $670 million 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 China Gezhouba Group Corporation. 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 Project ID#93432) and again in September 2022 (as captured via Project ID#96294).

Additional details

1. This project is sometimes referred to as the Paute-Sopladora Hydroelectric Project. The Spanish project title is El Proyecto Paute Sopladora. The Chinese project title is 厄瓜多尔•索普拉多拉水电站. 2. The September 2022 loan rescheduling agreement can be accessed in its entirety via https://www.dropbox.com/s/67pxbxhugurhywa/13%20September%202022%20Amendment%20Agreement%20related%20to%20BCL%20for%20Sopladora%20Project.pdf?dl=0 3. The Ecuadorian Ministry of Finance loan identification number is 23165000.

Number of official sources

27

Number of total sources

44