China, Ecuador salvage hydroelectric project agreement

The Export-Import Bank of China (Exim Bank) and the government of Ecuador have finally agreed on the financing of a hydroelectric project in Ecuador, the Wall Street Journal reported. The deal appeared to collapse last December when Ecuador President Rafael Correa described negotiating with China as "worse than [with] the IMF" and said that Exim Bank was demanding terms that would have impinged on Ecuador’s sovereignty, including a request that the Ecuadorian government guarantee the loan. In March, Correa halted the talks and said he would look elsewhere for partners. However, talks resumed in April and yesterday Ecuador Finance Minister Patricio Rivera said that Beijing had adjusted the terms of the 15-year, US$1.7 billion loan on acceptable terms. The project in question is the Coca Codo Sinclair hydroelectric complex, which under the proposal would be built by China’s Sinohydro Corp. The deal may open the door for other projects in mining, electrical, oil and wind power. Rivera said two other projects are nearing agreement, but did not give details.