Powerchina Coca Codo Contract Now Expected by December
Ecuador's planned operating contract with Powerchina for Coca Codo Sinclair is now expected by December 2026, later than the July timeline previously discussed.
The 1,500 MW hydroelectric plant was officially received in April 2026, almost ten years after inauguration.
Contract Terms Under Negotiation
| Item | Detail |
|---|---|
| Plant | Coca Codo Sinclair |
| Maximum capacity | 1,500 MW |
| Expected contract signing | By December 2026 |
| Planned operator | Powerchina |
| Parent relationship | Powerchina is Sinohydro's parent company |
| Contract duration | 25 years |
| Annual operation payment | $47M |
| Share of national demand supplied | about 35% |
| Construction start | July 2010 |
| Operation start | November 2016 |
| Construction cost | more than $2B |
The contract is tied to the arbitration settlement between Celec and Sinohydro. A conciliatory award issued in March set a 72-day window from the April 17 final handover act for materializing the operating arrangement.
Energy Minister Juan Carlos Blum said the parties are still structuring economic, financial and legal terms. Ecuador now aims to use the 72-day period to agree on an execution schedule for the award.
Settlement Economics
The settlement requires Sinohydro to pay $200 million to Celec in four installments of $50 million.
Guarantees also remain part of the process, including retention and good-performance guarantees previously valued at $98 million and $36 million.
What To Watch
- Whether the execution schedule is finalized within the arbitration-award window.
- The final associative structure: strategic alliance, consortium or another model.
- Timing of the first $50 million payment and guarantee releases.
- Operational accountability for cracks and other infrastructure defects at the plant.
Source
El Universo — “Contrato para que Powerchina administre y opere Coca Codo Sinclair se firmaria hasta diciembre”
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