228,500 USD drawn down from ETCA credit line for now-cancelled projects to improve Tosagua sewage and Portovelo Potable Water Plant

228,500 USD drawn down from ETCA credit line for now-cancelled projects to improve Tosagua sewage and Portovelo Potable Water Plant On May 23, 2001, and December 26, 2001, the governments of China and Ecuador signed and countersigned two separate sets of Letters of Exchange committing funds for two development projects (captured in Record ID#98665).

However, both of the projects described in these Letters were eventually cancelled at the request of the Government of Ecuador, but part of the projects' costs -- USD 228,500 already incurred by the Chinese government -- were still owed. In both cases, the original total project costs were unknown.

The first was for the Tosagua Sewage Project (Proyecto del Alcantarillado de Tosagua), which was to include the construction of 12.5 km of rain pipes, 18.8 km of rainwater drainage ditches, 4 pumping stations, 23 km of water pipes, 5 integrated wastewater treatment stations, and laying asphalt for about 100,000 square meters of roads.

It was to be funded, originally, through credit lines from Economic and Technical Cooperation Agreements (ETCA) signed April 16, 1996 and August 30, 1999.

The second was for the Portovelo Drinking Water Plant Improvement Project, which included the construction of a coagulation and sedimentation tank, a guard house, four reinforced concrete tanks of 100 cubic meters, 2 reinforced concrete tanks of 50 cubic meters, 2 pump houses, and the rebuilding of an overflow dam.

The project was originally to be funded by a credit line from an ETCA signed March 21, 1994.

On November 14, 2011 and April 13, 2012, new Letters of Exchange were signed by the two governments, which officially cancelled the projects.

However, a technical team had already been sent by the Chinese government to Ecuador at the end of 2001, in order to perform specific studies associated with both projects.

As a result, the costs incurred by the Chinese government as a result of sending this team were charged to the March 21, 1994 interest-free credit line. The costs totaled 228,500 USD.