PRESS: Russia’s Inter RAO can lose contract in Ecuador

MOSCOW, Apr 17 (PRIME) -- Inter RAO Export, a subsidiary of Russian power holding Inter RAO, has received a notification by Corporacion Electrica del Ecuador (Celec) of an intent to cancel a contract on equipment supplies for the Toachi-Pilaton hydropower plant and the Termogas Machala thermal power plant, business daily Vedomosti reported Monday, citing an Inter RAO representative.

Ecuador is discontent with a delay in launching the Toachi-Pilaton plant by more than a year, he said. The Russian company is in charge of supplies and installment of equipment and has suppled the main part of equipment already, he said.

Inter RAO Export plans to turn to the Ecuador’s mediation authority for an out-of-court settlement of the dispute.

Russia’s import-export bank Roseximbank gave a U.S. $320 million loan on the two projects to Celec. If the contracts are cancelled, Ecuador will have to return $170 million, Vedomosti reported.

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