Completed Mixed AidData Chinese Aid

China Eximbank provides $554.2 million buyer's credit loan for 487.8MW Sopladora Hydroelectric Power Plant Construction Project (Linked to Record ID#93432, #96294)

$554.3K USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Ecuador
Country	Ecuador
Start Date	Oct 18, 2011
End Date	Oct 24, 2030
Duration	6,946 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`35818`

Grant Description

China Eximbank provides $554.2 million buyer's credit loan for 487.8MW Sopladora Hydroelectric Power Plant Construction Project On January 27, 2011, China Eximbank and the Government of the Republic of Ecuador signed a confidential term sheet regarding the financing of the 487.8MW Sopladora Hydroelectric Power Plant Construction Project.

The, on July 12, 2011, Government of the Republic of Ecuador submitted a loan application to China Eximbank for the 487.8MW Sopladora Hydroelectric Power Plant Construction Project.

Several months later, on October 18, 2011, China Eximbank and the Government of the Republic of Ecuador signed a $571,363,360.21 buyer's credit loan (BCL) agreement (Contract No. 1410302052011211710) for the 487.8MW Sopladora Hydroelectric Power Plant Construction Project. The face value of the GCL was subsequently downsized to $554,251,553.96.

The BCL carried the following terms: an interest rate of 6.35%, a grace period of 4-years, a maturity of 15-years, a 0.4% commitment fee, a 0.4% management fee ($2,285,453.40), and a 1.5% default (penalty) interest rate. It is backed by a credit insurance policy from Sinosure.

The borrower was responsible for making 22 equal, semi-annual principal payments to the lender (on March 21 and September 21 of each year).

The borrower was expected to use the proceeds of the BCL to finance approximately 85% of a $672,192,188.48 commercial contract between Corporación Eléctrica del Ecuador (CELEC E.P.) -- a state-owned holding company in Ecuador engaged in the generation, transmission, distribution, commercialization, import and export of electric power -- and a consortium consisting of China Gezhouba Group Company Limited and FOPECA, which was signed on October 20, 2010.

Two initial disbursements worth $36,544,512.42 and $33,609,609.42, respectively, took place on October 8, 2012.

The borrower made principal repayments worth $27,712,577 on March 21, 2017, $27,712,577 on September 21, 2017, $27,712,577 on March 21, 2018, $27,712,577 on September 21, 2018, $27,712,577 on March 21, 2019, $27,712,577 on September 21, 2019, $27,712,577 on March 21, 2020, and $36,026,351.50 on March 21, 2022.

It did not make any principal repayments on the originally scheduled repayment dates of September 21, 2020, March 21, 2021, September 21, 2021, and September 21, 2022.

The loan’s (principal) amount outstanding was $526,536,976.96 as of March 20, 2017, $498,826,399.96 as of September 20, 2017, $471,113,822.96 as of March 21, 2018, $443,401,245.96 as of September 21, 2018, $415,688,668.96 as of March 21, 2019, $387,976,091.96 as of September 21, 2019, $360,263,514.96 as of March 21, 2020, $360,263,514.96 as of September 21, 2020, $360,263,514.96 as of March 21, 2021, $360,263,514.96 as of September 21, 2021, $360,263,514.96 as of December 31, 2021, $324,237,163.46 as of March 21, 2022, $324,237,163.46 as of September 21, 2022, and and $324,237,163.46 as of November 30, 2022.

The Sopladora hydroelectric power plant is located along the Paute River in Azuay. It is part of the Hydropaute cascade scheme in the Paute River in the south-east of the country. China Gezhouba Group Corporation was the contractor responsible for project implementation. CELEC E.P. was also involved in project implementation.

Construction began on April 26, 2011 and the power generation completion ceremony took place on August 25, 2016. However, the China Eximbank loan (BCL) that supported this project has underperformed.

It was rescheduled twice — once in September 2020 (as captured via Record ID#93432) and again in September 2022 (as captured via Record ID#96294).

📋 Staff Comments

This project is sometimes referred to as the Paute-Sopladora Hydroelectric Project. The Spanish project title is El Proyecto Paute Sopladora. The Chinese project title is 厄瓜多尔•索普拉多拉水电站.
The loan agreement can be accessed in its entirety via https://www.dropbox.com/scl/fi/lr8adsccsgw5vfokc6qjd/Ecuador-2011-China-Eximbank-Buyer-s-Credit-Loan-Agreement-for-the-487.8-MW-Sopladora-Hydroelectric-Power-Plant-Construction-Project.pdf?rlkey=kuvxpytjr7z4uqov0jfjh5jac&dl=03. The September 2022 loan rescheduling agreement can be accessed in its entirety via https://www.dropbox.com/s/67pxbxhugurhywa/13%20September%202022%20Amendment%20Agreement%20related%20to%20BCL%20for%20Sopladora%20Project.pdf?dl=04. The Ecuadorian Ministry of Finance loan identification number is 23165000.
The confidential term sheet that China Eximbank and the Government of the Republic of Ecuador signed on January 27, 2011 can be accessed via https://www.dropbox.com/scl/fi/mpn81obrnh23mb51sa3mu/Anexo-10-Confidencial-Convenio-Cr-dito-con-Eximbank-suscrito-por-Willam-V-sconez-R.pdf?rlkey=7inww1whbwy6dkbn09q8wtmcp&dl=06. The October 20, 2010 commercial contract can be accessed via https://www.dropbox.com/scl/fi/czy5b0aq9phi5s7elg247/Anexo-9-Contrato-para-la-construcci-n-del-proyecto-a-cargo-del-consorcio-CGGC-Fopeca.pdf?rlkey=ruw9g8u2m7agxl8s6fa9x68tk&dl=0

📚 Sources & References

Ambassador Wang Yulin attended the completion power generation ceremony of Sopradola Hydropower Station, 2011-China-Eximbank-Buyer-s-Credit-Loan-Agreement-for-the-487.8-MW-Sopladora-Hydroelectric-Power-Plant-Construction-Project
A Line in the Equatorial Forests: Chinese Investment and the Environmental and Social Impacts of Extractive Industries in Ecuador
Acta Resolutiva 17
Actualización del Dictamen de Prioridad del proyecto 'Hidroeléctrico Sopladora'
Acuerdo 233
Amendment Agreement
Are Big Chinese Energy Investments in Latin America a Concern?
Base-de-Datos-Boletin-de-Deuda-Noviembre-2022
BEIJING
BANKS AND BARRELS: CHINA AND OIL IN THE ECUADORIAN AMAZON
Boletin De Ejecucion Presupuestaria Julio/Septiembre 2011
CENTRAL HIDROELÉCTRICA “SOPLADORA”
China Diplomat: Chinese Investments In Ecuador Seen Rising
China provides funding for Ecuador's 487.8-MW Sopladora
China to Finance Ecuador Dams
China to loan Ecuador further $571 million in exchange for crude
China, the Politic and Economic Strategic Partner of Ecuador in the Era of the Socialism of the Twenty - first Century
China-Latin America Finance Database
Chinese ambassador to Ecuador inspects Sopladora Hydropower Station
Chinese firms interested in building hydroelectric plants in Ecuador
CMEC参与承建的厄瓜多尔索普拉多拉水电站首台机组顺利并网发电
CONVENIO DE PRESTAMO DE CREDITO AL COMPRADOR
CORPORACIÓN ELÉCTRICA DEL ECUADOR CELEC EP - UNIDAD DE NEGOCIO HIDROPAUTE
Cuaderno-Estadístico-Agosto-2022
Cuaderno-Estadístico-Boletín
Decreto 913 R. Correa nombra a Pedro Delgado como su delegado en Comité Deuda
DIRECCIÓN DE AUDITORÍA DE PROYECTOS Y AMBIENTAL
Ecuador gets $571 million China loan for Hydroelectric Plant
ECUADOR: CHINESE MEGA LOAN FOR DAM DRAWS FIRE
Ecuadorian President attended the power generation ceremony of three generator units of Sopladora hydropower Station
El detalle de los contratos de crédito externos o internos
Estadísticas Deuda Pública
Gezhouba 670 million US dollars won the bid for the Ecuadorian Hydropower Project
Gezhouba Group will build the Sopladora Hydropower Project in Ecuador
Hogan Lovells Advises on $570 Million Project Finance Loan for Hydroelectric Project in Ecuador
Información Técnica Proyecto Sopladora
MEMORANDO MF CGJ 2012-10
Memorando RESERVADO MF-SCP-2011-12
Memorando Resrvado No. MF-CGJ-2011-660
OFICIO 014 RESERVADO Procurador Diego García autoriza arbitraje
OFICIO CELEC EP-HPA-SF-0406-11 Transferencia 15% anticipo al constructor
OFICIO MF SCP 2011 0343
OFICIO MF SCP 2011 0656 Confidencial.
OFICIO MF-SCP-0559
OFICIO MF-SCP-2011-0506
OFICIO MF-SCP-2011-0606
OFICIO MF-SCP-2011-0671
Oficio SE-DM-2011
Parámetros Aplicables a la Información Financiera
PERFIL INTERES DEUDA INTERNA CORTO PLAZO POR SECTORES
President of Ecuador inspects CGGC's Sopladora Hydropower Station
Project 9308 : Paute - Sopladora Hydroelectric Project
Sopladora Hydroelectric Power Plant
Sopladora Hydroelectric project
Ecuador
Sopladora Hydropower Station
The New Banks in Town: Chinese Finance in Latin America
UPDATE: Ecuador
China Agree On Loan For Sopladora Project
厄瓜多尔保特-索普拉多拉水电站引水隧洞贯通
厄瓜多尔总统出席保特-索普拉多拉电站三台机组发电仪式
厄瓜多尔索普拉多拉水电站首台机组蜗壳吊装成功
葛洲坝集团将兴建厄瓜多尔索布拉(Sopladora)水电站项目
跨越“赤道” 迈向拉美——专访驻厄瓜多尔大使馆经济商务处彭涛参赞 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.