Electroquil Power Plant

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Electroquil was created by the private Guayaquil Chamber of Commerce in 1991, but commercial operation started only in 1995 (construction works started in 1992 and were completed in 1993). The plant had four 42-MW units which supplied electricity to the state-owned utility Inecel under a power purchase agreement. Units 1 & 2 commenced operation in 1995, while units 3 & 4 were started up in 1996. Electroquil had two contracts with Inecel: one signed in 1995 for units 1 & 2 which expired in May 2001 and another signed in 1996 for units 3 & 4 which expired in June 2002. In 1998, Duke Energy acquired a 51.5% stake in Electroquil from the Chamber of Commerce for US$45 million. In December 2016, Duke sold all its Latin American assets to Orazul for US$ 1.2 billion. In 2002, despite discrepancies with the regualtor over unpaid US$4.1 million bills due to Electroquil from the Ministry of Mines and Energy, Duke Energy renewed its contract for an additional five years. In August of 2004, Duke Energy filed with an international arbitration panel associated with the World Bank seeking some US$23 million in debts from the Ecuadorian government for unpaid generation from its Electroquil subsidiary. On August 18, 2008, a reward was rendered by ICSID Case No. ARB/04/19 in favor of DUKE ENERGY ELECTROQUIL PARTNERS and ELECTROQUIL S.A. a nominal amount of approximately US $5.5 million plus interest at the simple active rate quoted by the Central Bank of Ecuador from the date on which each fine became due. A PPA was in effect in 2008 and Duke Energy Corp. had an 83% stake in the project. update regarding PPA