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Ecuador, China mull deal of $2b hydropower plant

(Xinhua)
Updated: 2009-04-22 11:32

QUITO -- The Ecuadorian government has formally started negotiations with a Chinese firm to build the country's biggest hydropower plant, the Energy Ministry said on Tuesday.

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Chinese ambassador to Ecuador Cai Runguo and Ecuadorian Energy Minister Germanico Pinto signed on Monday an agreement of intention to set technical, juridical and economic mechanisms for a final agreement on the contract.

Ecuador will have until June to decide whether or not to give the project to the Chinese state-owned Sinohydro-Andes.

The Coca-Codo-Sinclair plant, to be located about 75 km east of Quito, will have a capacity of 1,500 megawatts to cover 75 percent of the country's energy demand.

Ecuadorian government said the reference value of the project is of US$2 billion, 85 percent of which will be financed by Sinohydro-Andes.

Chinese ambassador Cai said Chinese companies and banks are interested in cooperation with Ecuador on other hydropower projects.