The government of Ecuador last month signed a contract with Chinese contractor Sinohydro to build a hydroelectric project. The Coca Codo Sinclaire Dam will be located on the upper Napo River, a tributary of the Amazon, about 75 miles east of Quito. It will generate 1,500 MW and is expected to cost $2 billion. Fifteen percent of the financing will be provided by the Ecuadorean government, and the remaining 85% will be a loan from China’s Export-Import Bank. When completed, the project will be the largest dam built outside China by a Chinese firm. Construction is expected to take five years. Once online, Coca Codo is expected to supply up to 70% of Ecuador’s electricity needs, reducing its dependency on imported power. The project initially was begun in the 1980s, but halted in 1987 by the eruption of El Reventador volcano.
Chinese Firm Chosen To Build a Major Dam Project
November 18, 2009