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Energy
TheHidroAgoyandamlocated inBaños, provinceof Tungurahua
Alstom (France), Voith Siemens (Germany), Sie-
mens (Colombia) and Santos CMI (Ecuador). The
project cost in excess of $700 million.
COCA CODO SINCLAIR PLANT
The Coca Codo Sinclair plant is owned by CELEC
and therefore is the property of the Ecuadorian
State. This particular project is an example of the
strong relationship between China and Ecuador.
Plans for this project began in 1970’s, however until
Rafael Correa came to power in 2007 the develop-
ment of this plant was not prioritized. The project
stalled for a couple of years until China agreed to
invest in it. After extensive negotiation, the gov-
ernment secured a $1.7 billion loan from the Exim-
bankof China.
Together with 3000 local workers, Chinese spe-
cialists from contractor Sinohydro are creating the
1500MW and 8600 GW-hour per year hydroelectric
plant. Once in operation, the dam should meet 35%
of Ecuador’s power needs by 2016, whilst reducing
CO2 emissions by four million tonnes a year.
The dam will be built at the foothills of the Andes,
in the Amazon rainforest, some 75 kilometres east
of the capital Quito The project lies 20 kilometres
upstream of the fall to divert the Coca river, one of
Ecuador’s largest Amazonian rivers.
It is predicted that the dam will help reduce gas oil
and bunker subsidies, which currently amount for
$1 billion. This would in turn eliminate the need to
import electricity from Colombia and Peru. This se-
curity of supply issue is fundamental to Ecuador’s
development as an economy.
During the construction process, the project could
generate around 10,000 direct and 50,000 indirect
jobs. The Coca Codo project is expected to begin
commercial production by 2015 according to gov-
ernment officials.
BABA MULTI-PURPOSE PROJECT
The Baba Multi-Purpose dam is a 45MW facility lo-
cated on the Baba River in Ecuador’s Guayas River
basin. CONELEC granted permission to Hidrolit-
eral to develop the project in 2007. This eight kilo-
metre diversion project would re-route water from
its reservoir on the Baba and Toachi rivers to the
213 MW Marcel Laniado de Wind Hydro Complex
on the Daule and Peripa rivers.
When fully installed, the project could potentially
generate 388 gigawatt-hours per year which would
reduce energy imports by 22%, something that Ec-
uador is focused on achieving. It is comprised of
an interconnected series of four dams and three
canals, which take advantage of the surplus water
in the Baba River to improve water supply to the
Peripa Daule dam which is currently responsible
for supplying drinking water and irrigation for an
estimated four million people in the provinces of
Los Rios, Manabi, Guayas and Santa Elena. At the
same time, the plant will help to reduce river flood-
ing and ensure a minimum drainage level during
periods of drought.
TOACHI PILATÓN
This hydroelectric project uses the power of the
waters of Pilatón and Toachi and is located in the
province of Santo Domingo de los Sachilas. This
228MW capacity facility has not yet been con-
structed but in April 2011 it finally attracted the
investment it needed. The total cost of the project
is $517 million USD, 123.2 million of which will
be loaned from Russian bank Vnesheconombank
and 250 million of which will come from the Ban-
co del Instituto Ecuatoriano de Seguridad Social
(BIESS). Chinese state company China CWE will
lead the construction project with a target comple-
tion date of 2015.
The facility will include a 60m concrete dam,
two penstocks and two underground tunnels of
4.5 kilometres and 10 kilometres in length. The
project is linked to two power stations, Sarapullo
and Arulliquin situated on rough volcanic terrain
in Canton Sa.
Being the first contract of its nature in the rela-
tionships between the Russian Federation and
the Republic of Ecuador, it opened the doors for
future credits to be provided by the Russian Gov-
ernment, which would allow Ecuador to finance
other strategic projects.