Skip to main content

Large energy projects in Ecuador face large delays

Ecuador is facing large delays in the implementation of energy projects. In July 2012, there were eleven hydropower and wind projects slated for 2016; only three had been completed. Until the completion of the projects, Ecuador will remain dependent on energy imports from Colombia and Peru.

One of the largest project, the 1,500 MW Coca Codo Sinclair hydropower plant, was initially expected in January 2014 but poorly executed and backward engineering studies, lack of funding, disputes with contractors and a change in the management of projects from local governments to the central government delayed the project to January 2016. As well, 487 MW Sopladora dam, which was expected in 2011 was delayed due to lack of funding and engineering studies; it is now expected for 2016 at the earliest. For the 275 MW San Francisco hydroelectric project, the delays were caused by the conflict between the government and the Brazilian contractor Odebrecht (now expected in 2015).

Ecuador requires significant improvements in infrastructure but power projects continue to face delays due to weaknesses in the policy framework, which will also keep the reluctance of private firms to invest in Ecuador.