Ecuador’s Assembly scrutinizes Celec contracts linked to power cuts

Ecuador’s National Assembly is examining how nearly $149.1 million in public money was spent on emergency power generation during the country’s 2024 blackouts.

The crisis left homes and businesses without electricity for several hours a day. To add thermal generation quickly, state utility Celec EP signed contracts with private companies, including Progen Industries LLC. On Aug. 2, 2024, Celec agreed to add 150 megawatts through two projects.

The larger contract covered 100 megawatts from 29 generating units at El Salitral in Guayaquil and was valued at $99.4 million. A second contract covered 50 megawatts in Quevedo, Los Ríos, for $49.7 million. Together, the agreements totaled about $149.1 million.

The Assembly said its Aug. 30 oversight process relied on documents, testimony and technical reports from Ecuador’s Comptroller General. It said the case files would go to the competent authorities for further investigation and, if appropriate, the assignment of responsibility and recovery for the state.

The comptroller’s special examinations of the El Salitral and Quevedo projects identified problems before the contracts were signed, according to information presented to the Assembly’s Oversight Commission on Aug. 26. The findings included requests and reports that allegedly failed to meet all requirements, an invitation extended only to Progen without verifying the necessary technical capacity, and payments made before officials confirmed the condition of the contracted generating units. Administrative, legislative and criminal investigations are now under way.