A consortium led by Odebrecht of Brazil was named winning bidder to develop Ecuador’s 50-MW Baba multipurpose project in Ecuador’s Guayas River Basin, according to press reports carried by Business News Americas.
The contract, with Ecuador’s Comision de Estudios para el Desarrollo de la Cuenca del Rio Guayas (CEDEGE), is expected to be signed by late March or early April. Project development is expected to take 24 months.
Consortium Hidroenergetico del Litoral (CHL), bid US$208 million to be chosen over Impregilo of Italy and Grupo Generador Baba, led by Techint of Argentina.
Odebrecht has a 14.5 percent stake in CHL. Other partners are Papelera Nacional with 28 percent, Wong group with 24 percent, Cartopel with 16.5 percent, Nirsa with 14 percent, and Ipac with 2 percent.
CHL is to become a partner with Hidropacifico, which is in charge of building and operating Baba for 35 years. The consortium, which includes paper and packaging companies, is expected to issue debt up to US$90 million to help finance the project. CHL plans to generate power for member companies’ own use.