PW
Español

 

PW
Guyana
Surinam


PW
Trinidad

& Tobago
Caribbean

 

Prices
Graphics

 




Very usefull links



PW
Bookstore





Blogspots

The Global Barrel

Tiempo Culural

Gustavo Coronel

Iran Watch.org

Le Blog des
Energies Nouvelles

News Links

AP

AFP

Aljazeera

Dow Jones

Reuters

Bloomberg

Views and News
from
Norway

 

PW
Bookstore

 

 

 

New problems at Ecuador's CELEC Coca Codo hydroelectric Chinese-built plant

energiaestrategica.com

Coca Codo Sinclair hydroelectric plant provides nearly a third of the Andean country's electricity.

By Alexandra Valencia /Reuters

QUITO
Petroleumworld 07 22 2021

Ecuador's power company CELEC has found new problems at its Coca Codo Sinclair hydroelectric plant that threaten water flow and electricity generation, the company's chief executive said, the latest issue at the facility built by China's Sinohydro Corp.

CELEC in May requested arbitration through the International Chamber of Commerce to settle a dispute over cracks in the 1,500-megawatt plant's machinery that have prevented it from operating at full capacity since it was completed in 2016, after $2.2 billion in construction costs.

During a shutdown of four of Coca Coda Sinclair's eight turbines for planned maintenance, state-owned CELEC discovered missing bolts on some of its valves, CEO Gonzalo Uquillas said, adding that the problem could prevent valves from opening and closing to adequately regulate the flow of water.

“Of the 96 bolts that secure the seals on these valves, some bolts are missing,” Uquillas said in an interview on July 16. “I don't want to believe they weren't installed, but they are missing.”

The maintenance shutdown of the plant, which provides nearly a third of the Andean country's electricity, was initially planned for May through September but may now be extended for 60 additional days due to the discovery of the new problems, Uquillas added.

In a Wednesday statement following initial publication of this article, China's embassy in Quito said it supported the two parties resolving the project's problems “through an adequate, reasonable and legal way, in accordance with the spirit of the contract, market principles and international rules.”

Sinohydro did not respond to a request for comment.

The missing bolts are a separate issue from the cracks in the machinery, which CELEC is concerned could lead to leaks. CELEC is hoping to get Sinohydro to cover $20 million in costs to repair the cracks through the arbitration proceeding.

Uquillas said Sinohydro has not yet responded to CELEC's notification that it has sought to initiate arbitration. He added that an inability to resolve the dispute could delay the definitive transfer of ownership of the plant from Sinohydro to CELEC, set to take place at the end of 2022.

“We will not receive the plant until all the problems are resolved,” Uquillas said.

Separately, CELEC is investing some $100 million to protect Coca Codo Sinclair's reservoir from the Coca River's rapid erosion, which is threatening infrastructure in the region.

_____________

Reporting by Alexandra Valencia in Quito; Additional reporting by Muyu Xu in Beijing; Writing by Luc Cohen; Editing by Bill Berkrot and Rosalba O'Brien from Reuters.

reuters.com
07 21 2021

TOP

Contact: editor@petroleumworld.com,


Editor & Publisher:Elio Ohep /
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2021, Elio Ohep A. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2021, Petroleumworld ™  / Elio Ohep - All rights reserved

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.