Toachi - Pilatón hydroelectric project will start operation in 2021

Friday, March 1, 2019

The Toachi-Pilatón hydroelectric project, which takes place at the convergence of the provinces of Pichincha, Santo Domingo de los Tsáchilas and Cotopaxi, will begin operations in 2021 and will be completed by the Tyazhmash company within 30 months, with an investment of around USD 140 million, after the contract with the company Inter Rao, in charge of executing this work, was terminated unilaterally.

During a television interview, the Minister of Energy and Non-Renewable Natural Resources, Carlos Pérez, explained that the contract culminated with the company since "the work was not executed within the established deadlines." He even said "a commission traveled to Russia but no agreement was reached".

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In this context, this State Portfolio asked the President of the Republic, Lenin Moreno, for an emergency declaration to hire the new company who will be in charge of completing the work. The Minister noted that in order to carry out this process, a consultancy was hired to determine the remaining amounts. Based on these studies, the final cost was negotiated, which ensures that there is no overprice in the contracting of the company Tyazhmash, which will be in charge of finishing the installation of the electromechanical equipment such as: turbines, generators, gates, valves, among others. .

Once the works are restarted, the Sarapullo generation plant (49MW) will be operational in 9 months, and the Alluriquín generation plant (204 MW) will be operational 15 months later. The Toachi-Pilatón hydroelectric plant will have a capacity of 254 MW and will also take advantage of the ecological flow of the Toachi dam, installing a mini-power plant of 1.4 MW.

Regarding the investment made by the Ecuadorian Institute of Social Security (IESS) in this project, the Secretary of State clarified that this Ministry has recognized the interest rate of this investment and that so far two disbursements have already been made to this institution. He also stated that due to the breach of the contract, the Ecuadorian State collected the guarantee of USD 18.06 million from the Inter Rao company.

The Toachi-Pilatón project was suspended in 2017, with an advance of 85%. The National Government has recovered, until now, two hydroelectric plants (Delsitanisagua and Minas San Francisco) that were paralyzed due to technical and administrative discrepancies with the contractors and inspectors.

This Ministry of Energy and Non-Renewable Natural Resources release was published using an automatic translation system.