China and Latin America: Investment and Trade Flow
As Chinese investment increases, LatAm tries to be more than just a cheap supplier of raw materials. Skeptics are wary of China’s track record in other regions.
by Ben Miller
With a capacity of 1,500 megawatts, the Coca Codo Sinclair
hydroelectric dam will be expected on completion to supply
about 70% of Ecuadors electricity needs, potentially
freeing it from needing to import power. After Ecuador stiffed
international markets with a messy restructuring, raising
almost $2 billion for the project straddling the Coca River
near the Colombian border seemed a tall order. However, China
has eagerly stepped in.
Four international companies bid, but only the two
Chinese companies presented financing, and one of those
withdrew, leaving Sinohydro, says Italo Centenaro,
general manager of Coca Codo Sinclair, the Ecuadorian
government-owned project company. Sinohydro, Chinas
largest hydroelectric builder, signed a contract in early
October to build the project and brought with it a $1.7 billion
15-year loan from the Export-Import Bank of China.
The Chinese Exim loan has a 6.2% interest rate...
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