Ecuador Plans Emergency Contracting Committee as Erosion Threatens Coca Codo

Ecuador is preparing an emergency contracting mechanism for Coca Codo Sinclair, the country's largest hydroelectric plant, as regressive erosion advances along the Coca River.

Energy Minister Juan Carlos Blum said the government is concerned about erosion threatening the plant's water-intake works.

Coca Codo Sinclair supplies about 25% of Ecuador's electricity demand.

Emergency Committee

Blum said the government will form a special committee with several state entities to allow emergency works for the hydro plant.

The committee is expected to include:

• Ministry of Environment and Energy
• Ministry of Infrastructure and Transport
• National Risk Management Secretariat
• Secretariat of the Administration

Blum also said the government met with the U.S. Embassy and reiterated the commitment of the U.S. Army Corps of Engineers to work with the required speed.

Options Under Review

One option is moving the water-intake works, but Blum described that as very costly and said studies would be needed.

The government is also evaluating whether it can stop or slow the erosion.

Blum cited the permeable dike as an example: it cost $20 million, while the plant itself cost more than $2 billion.

The erosion had advanced to around kilometer 3.4.

PowerChina Context

The minister said the issue outside regressive erosion is the operationalization of the agreement with PowerChina.

He said the arrangement is a strategic alliance with public company CELEC, and that financial structuring still needs to be completed. The target is to finish that work by August.

PowerChina would operate and maintain Coca Codo Sinclair but would not assume erosion risk.

What to watch

• Whether the emergency committee is formally constituted and given contracting authority.
• Whether the government reactivates a commission to contract containment and emergency works faster.
• Whether studies support moving the water-intake structures or prioritize erosion-slowing works.
• Whether PowerChina's operating role is finalized by August despite unresolved erosion risk.