"Ecuador drops dam dispute with China, but project remains contentious", Dialogue Earth, 2 September 2025

[...] foreign minister Gabriela Sommerfeld announced Ecuador had reached an agreement with PowerChina – the parent company of Sinohydro, Coca Codo Sinclair’s builder – to take over operations at the hydroelectric plant.

[...] the Chinese state-owned enterprise will pay USD 400 million in compensation. In return, the Ecuadorian government will end the international arbitration it initiated in 2021 to pursue USD 580 million in damages. The case had been brought due to structural defects in the hydroelectric plant: more than 17,000 cracks reportedly detected since operations began, as well as defective valves and poorly installed components.

“This new agreement raises questions about energy sovereignty, transparency and state capacity [...] the flagship project for changing the energy mix ends up being operated by the same company blamed for the failures that prevented it from doing so. Meanwhile, blackouts return and the erosion of the Coca River continues.”