CDB loan for construction of Quijos Hydroelectric Plant (linked to Record ID#69319)

Project narrative

The Quijos hydroelectric plant project was funded through a 2011 China Development Bank loan of $2,052,360,403.03 (Record ID#35930), specifically through the $1.4 billion discretionary component (Tranche A; Record ID#69319). The loan terms of Tranche A have been applied to this project. In 2011, the Corporation Electrica del Ecuador (CELEC) awarded the 95.5 million USD contract to CNEEC to build the Quijos hydroelectric power plant. Celec awarded China National Electric Equipment Corp. (CNEEC) a US$94.7 million contract in December for construction and equipping of Quijos, to be complete by December 2015. However, by the end of 2015, the contract with CNEEC was terminated. State-owned CELEC submitted its first request to the Public Procurement Service (Sercop) to include the Chinese company in the register for faults in a contract for construction, installation and commissioning of the 50 MW Quijos hydroelectric project. A seven year mediation between CNEEC and CELEC failed. The purpose of this project was to construct a run-of-river 50 mw hydroelectric power plant making use of the Papallacta’s and Quijos’ Rivers water flows. Sand traps would be built to conduct water through connection channels towards recharge wells. The powerhouse was to be equipped with three Francis turbines as well as valves and control panels. The dam was intended to contribute to Ecuador's energy stabilization and sustainability. An environmental impact assessment was conducted and a report was prepared for the UNFCCC CDM. Construction began January 20, 2012. As of January 2017, the project was reported 46% completed. In 2024, reports emerged that construction had been halted since 2016, and previously constructed elements have deteriorated significantly. This deterioration has allegedly caused environmental damage to the area. The area has also been affected by drought that would reduce feasibility of the project.