Ecuador Releases $98.9M in Sinohydro Guarantees After Coca Codo Handover
Ecuador has returned most of the guarantees still retained from Sinohydro after the definitive handover of Coca Codo Sinclair.
Primicias reports that public utility CELEC transferred $98.9 million to Sinohydro on May 8, 2026, corresponding to pending balances from two policies: substitution of retention and faithful compliance with the environmental management plan.
The transfer came 21 days after CELEC signed the definitive acceptance of the hydroelectric plant on April 17, 2026.
Guarantee Position
| Item | Figure |
|---|---|
| Guarantees originally delivered by Sinohydro | $190.1M |
| Previously returned before May 2026 | $55.2M |
| Returned in May 2026 | $98.9M |
| Total released after May transfer | $154.1M |
| Remaining distributor-performance policy | $36M |
Primicias reports that the remaining $36 million policy relates to the water distributors, which are key components that conduct water to the generation turbines.
The article says the distributors have had failures since 2014, before the plant entered operation, and that official reports showed cracks rising from more than 7,600 to more than 17,600.
O&M Negotiation
Coca Codo Sinclair has 1,500 MW of installed capacity and can cover about 25% of national electricity demand, according to Primicias.
The construction contract was awarded during the government of former President Rafael Correa for $2.763 billion. Although the plant began operating in 2016, Primicias reports that Ecuador had not formally received it because of the distributor cracks.
The outlet reports that Ecuador and PowerChina agreed, after President Daniel Noboa's 2025 visit to China, to move toward definitive acceptance in exchange for $200 million in cash and an additional $200 million credit.
Primicias also reports that the agreement contemplates Ecuador paying PowerChina $46 million per year for administration, operation and maintenance. Over 25 years, that would total about $1.15 billion.
What To Watch
- Final terms and risk allocation in the PowerChina operating and maintenance contract.
- Whether the $36 million distributor guarantee remains sufficient if repair responsibility shifts.
- Treatment of recurring distributor repair costs, which Primicias says had been about $5 million every two years.
- Any future fiscal disclosure around the $46 million annual O&M obligation.
Source: Primicias
Source
Primicias — “Ecuador liberó ya casi todas las garantías retenidas a la china Sinohydro tras recibir Coca Codo Sinclair”
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