The Ecuadorian government announced on April 8 that the International Court of Arbitration of the International Chamber of Commerce in Paris has approved the final acceptance process for the Coca Codo Sinclair hydroelectric plant. The approval, which is binding for both Ecuador and Sinohydro, marks a key step toward establishing a new operational and maintenance framework for the country’s largest power facility.
This development is significant as it aims to strengthen the reliability and stability of Ecuador’s electricity supply by ensuring continuous state oversight and control over the plant’s operations. The agreement follows a legal process overseen by Ecuador’s Attorney General’s Office, with notification received on April 3.
The first provisional handover phases took place in August and December 2016, allowing formal state operation of Coca Codo Sinclair. Under current agreements, there will be total compensation amounting to $400 million: $200 million in cash transactions and another $200 million dedicated to renewable energy projects in Ecuador. The government clarified that this arrangement does not involve any transfer of ownership or strategic control over the facility.
As part of ongoing efforts to optimize operations at this 1,500-megawatt hydroelectric station—located between Napo and Sucumbíos provinces and supplying up to 30% of national electricity—the government will transfer operation, maintenance responsibilities, and all associated risks to Power Construction Corporation of China (PowerChina). This company specializes in large-scale infrastructure management worldwide and will address construction defects previously identified by Ecuador’s Comptroller General.
The roadmap now being implemented stems from commitments made after President Daniel Noboa’s official visit to China in June 2025 as well as technical discussions among involved parties. Authorities say these measures are designed not only to resolve longstanding issues dating back more than a decade but also to extend the lifespan of one of Ecuador’s most important energy assets.
Government officials reaffirmed their commitment “to responsible management of strategic sectors,” emphasizing goals such as safeguarding public resources, maintaining national energy security, and ensuring key infrastructure benefits all citizens.
