China and Ecuador Close Deal for Finance of Hydroelectric Plant

ElComercio.com reports that Ecuador’s Minister of Finance has completed final negotiations with the Eximbank of China for the credit of $571 million to finance the Sopladora hydroelectric project. Reportedly, the loan has an interest rate of 6.35% for a 15-year term with four years grace period. Chinese funding will be 85% of the entire project, estimated at a total of $650 million. Officials say Sopladora will be located along the Paute River. The government is promoting hydroelectric projects, including the Coca Codo Sinclair since they will allow Ecuador to provide enough energy to meet domestic demand. The government is also touting the hydroelectric’s cleaner, cheaper energy and the reduction of carbon emissions.Read Article