

Currently released so far... 12404 / 251,287
Browse latest releases
2010/12/01
2010/12/02
2010/12/03
2010/12/04
2010/12/05
2010/12/06
2010/12/07
2010/12/08
2010/12/09
2010/12/10
2010/12/11
2010/12/12
2010/12/13
2010/12/14
2010/12/15
2010/12/16
2010/12/17
2010/12/18
2010/12/19
2010/12/20
2010/12/21
2010/12/22
2010/12/23
2010/12/24
2010/12/25
2010/12/26
2010/12/27
2010/12/28
2010/12/29
2010/12/30
2011/01/01
2011/01/02
2011/01/04
2011/01/05
2011/01/07
2011/01/09
2011/01/10
2011/01/11
2011/01/12
2011/01/13
2011/01/14
2011/01/15
2011/01/16
2011/01/17
2011/01/18
2011/01/19
2011/01/20
2011/01/21
2011/01/22
2011/01/23
2011/01/24
2011/01/25
2011/01/26
2011/01/27
2011/01/28
2011/01/29
2011/01/30
2011/01/31
2011/02/01
2011/02/02
2011/02/03
2011/02/04
2011/02/05
2011/02/06
2011/02/07
2011/02/08
2011/02/09
2011/02/10
2011/02/11
2011/02/12
2011/02/13
2011/02/14
2011/02/15
2011/02/16
2011/02/17
2011/02/18
2011/02/19
2011/02/20
2011/02/21
2011/02/22
2011/02/23
2011/02/24
2011/02/25
2011/02/26
2011/02/27
2011/02/28
2011/03/01
2011/03/02
2011/03/03
2011/03/04
2011/03/05
2011/03/06
2011/03/07
2011/03/08
2011/03/09
2011/03/10
2011/03/11
2011/03/13
2011/03/14
2011/03/15
2011/03/16
2011/03/17
2011/03/18
2011/03/19
2011/03/20
2011/03/21
2011/03/22
2011/03/23
2011/03/24
2011/03/25
2011/03/26
2011/03/27
2011/03/28
2011/03/29
2011/03/30
2011/03/31
2011/04/01
2011/04/02
2011/04/03
2011/04/04
2011/04/05
2011/04/06
2011/04/07
2011/04/08
2011/04/09
2011/04/10
2011/04/11
2011/04/12
2011/04/13
2011/04/14
2011/04/15
2011/04/16
2011/04/17
2011/04/18
2011/04/19
2011/04/20
2011/04/21
2011/04/22
2011/04/23
2011/04/24
2011/04/25
2011/04/26
2011/04/27
2011/04/28
2011/04/29
2011/04/30
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Apia
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Auckland
Consulate Amsterdam
Consulate Adana
American Institute Taiwan, Taipei
Embassy Bujumbura
Embassy Buenos Aires
Embassy Budapest
Embassy Bucharest
Embassy Brussels
Embassy Bridgetown
Embassy Bratislava
Embassy Brasilia
Embassy Bogota
Embassy Bishkek
Embassy Bern
Embassy Berlin
Embassy Belmopan
Embassy Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Barcelona
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Ciudad Juarez
Consulate Chennai
Consulate Casablanca
Consulate Cape Town
Consulate Calgary
Embassy Dushanbe
Embassy Dublin
Embassy Doha
Embassy Djibouti
Embassy Dili
Embassy Dhaka
Embassy Dar Es Salaam
Embassy Damascus
Embassy Dakar
Consulate Dubai
Embassy Helsinki
Embassy Harare
Embassy Hanoi
Consulate Ho Chi Minh City
Consulate Hermosillo
Consulate Hamilton
Consulate Hamburg
Consulate Halifax
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kinshasa
Embassy Kingston
Embassy Kigali
Embassy Khartoum
Embassy Kathmandu
Embassy Kampala
Embassy Kabul
Consulate Kolkata
Embassy Luxembourg
Embassy Luanda
Embassy London
Embassy Ljubljana
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy La Paz
Consulate Lahore
Consulate Lagos
Mission USOSCE
Mission USNATO
Mission UNESCO
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Minsk
Embassy Mexico
Embassy Mbabane
Embassy Maputo
Embassy Manila
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Mumbai
Consulate Montreal
Consulate Monterrey
Consulate Milan
Consulate Melbourne
Embassy Nicosia
Embassy New Delhi
Embassy Ndjamena
Embassy Nassau
Embassy Nairobi
Consulate Naples
Consulate Naha
Embassy Pristina
Embassy Pretoria
Embassy Prague
Embassy Port Of Spain
Embassy Port Louis
Embassy Port Au Prince
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Peshawar
REO Basrah
Embassy Rome
Embassy Riyadh
Embassy Riga
Embassy Reykjavik
Embassy Rangoon
Embassy Rabat
Consulate Rio De Janeiro
Consulate Recife
Secretary of State
Embassy Suva
Embassy Stockholm
Embassy Sofia
Embassy Skopje
Embassy Singapore
Embassy Seoul
Embassy Sarajevo
Embassy Santo Domingo
Embassy Santiago
Embassy Sanaa
Embassy San Salvador
Embassy San Jose
Consulate Strasbourg
Consulate St Petersburg
Consulate Shenyang
Consulate Shanghai
Consulate Sao Paulo
Embassy Tunis
Embassy Tripoli
Embassy Tokyo
Embassy The Hague
Embassy Tel Aviv
Embassy Tehran
Embassy Tegucigalpa
Embassy Tbilisi
Embassy Tashkent
Embassy Tallinn
Consulate Toronto
Consulate Tijuana
USUN New York
USEU Brussels
US Office Almaty
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Embassy Vilnius
Embassy Vienna
Embassy Vatican
Embassy Valletta
Consulate Vladivostok
Consulate Vancouver
Browse by tag
ASEC
AE
AF
AM
AR
AJ
AU
AORC
AG
AEMR
AMGT
APER
AGMT
AL
AFIN
AO
AMED
ADCO
AS
ABUD
ABLD
ASUP
ASECKFRDCVISKIRFPHUMSMIGEG
APECO
AID
AND
AMBASSADOR
AN
ARM
AY
AODE
AMG
ASCH
AMCHAMS
ARF
APCS
APEC
ASEAN
AGAO
ANET
ADPM
ACOA
ACABQ
AORL
AFFAIRS
ATRN
ACS
AFSI
AFSN
ADANA
ASIG
AA
AX
AUC
AC
AECL
AADP
AGRICULTURE
AMEX
ACAO
ACBAQ
AQ
AORG
ADM
AINF
AIT
ASEX
AGR
AROC
ATFN
AFGHANISTAN
AFU
AER
ALOW
AZ
AVERY
BA
BY
BU
BR
BE
BL
BO
BK
BM
BILAT
BH
BEXP
BF
BTIO
BC
BBSR
BMGT
BTIU
BG
BWC
BB
BD
BX
BP
BRUSSELS
BN
BIDEN
BT
CW
CH
CF
CD
CV
CVIS
CM
CE
CA
CJAN
CLINTON
CIA
CU
CASC
CI
CO
CACM
CDB
CN
CMGT
CS
CG
CBW
CIS
CR
CONDOLEEZZA
CPAS
CAN
CWC
CY
COUNTER
CDG
CL
CT
CIC
CIDA
CSW
CHR
CB
CODEL
COUNTERTERRORISM
CTR
COM
CICTE
CFED
CJUS
CKGR
CBSA
CEUDA
CARSON
CONS
CITEL
CLMT
CROS
CITT
CAC
CVR
CDC
CAPC
COPUOS
CBC
CBE
CARICOM
COE
COUNTRY
CLEARANCE
CACS
CTM
CNARC
ECON
EFIN
ETRD
EUN
EFIS
EG
ETTC
EZ
EPET
EAID
EAGR
ENRG
ECUN
EU
ELAB
ECPS
EAIR
EINV
ELTN
EWWT
EIND
EMIN
EI
ECIN
ENVR
ELECTIONS
EINVEFIN
EN
ES
ER
EC
EUC
EINT
EINVETC
ENGR
ET
EK
ENIV
ETRDEINVECINPGOVCS
ECONOMY
EAP
EFTA
EUR
EUMEM
EXIM
ERD
ENERG
EUREM
ESA
ERNG
EXTERNAL
EPA
EINVECONSENVCSJA
ECONOMICS
ELN
EINN
EFINECONCS
ENNP
EEPET
ETRDEINVTINTCS
ENVI
ETRO
ESENV
ECINECONCS
ECONOMIC
EAIDS
EDU
ETRA
ETRN
EFIM
EIAR
ETRC
EAIG
EXBS
EURN
ECIP
EREL
ECA
ENGY
ECONCS
ECONEFIN
ETC
ETRDECONWTOCS
EUNCH
EINDETRD
IR
IZ
IS
IAEA
INRB
IRAJ
IQ
IN
IT
IMO
INTERPOL
ICAO
IO
IC
ITALY
ITALIAN
IRAQI
ICTY
ID
IPR
IWC
ILC
INTELSAT
IL
IBRD
IMF
IA
IRC
ICRC
ILO
ITU
ITRA
IV
IDA
IAHRC
ICJ
ISRAELI
IRS
INMARSAT
ISRAEL
ISLAMISTS
INDO
IZPREL
ITPHUM
ITPGOV
ITF
IBET
IEFIN
INR
IACI
INTERNAL
IDP
IGAD
IEA
ICTR
IIP
INRA
INRO
IF
KJUS
KSCA
KNNP
KU
KCOR
KCRM
KDEM
KTFN
KHLS
KPAL
KWBG
KACT
KGHG
KPAO
KTIA
KIRF
KWMN
KS
KG
KZ
KN
KMDR
KISL
KSPR
KHIV
KPRP
KAWK
KR
KUNR
KDRG
KCIP
KGCC
KTIP
KSUM
KPKO
KVIR
KAWC
KPIN
KGIC
KRAD
KIPR
KOLY
KCFE
KMCA
KE
KV
KICC
KNPP
KBCT
KSEP
KFRD
KFLU
KVPR
KOCI
KBIO
KSTH
KMPI
KCRS
KOMC
KTBT
KPLS
KIRC
KREL
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KFLO
KBTS
KSTC
KTDB
KFSC
KX
KFTFN
KNEI
KIDE
KREC
KMRS
KICA
KPAONZ
KCGC
KSAF
KRGY
KCMR
KRVC
KVRP
KSEO
KCOM
KAID
KTEX
KNUC
KNAR
KNUP
KNNPMNUC
KLIG
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KCRCM
KHDP
KGIT
KNSD
KOMS
KWMM
KPAI
KHSA
KTLA
KO
KMFO
KRCM
KCSY
KSAC
KTRD
KPWR
KID
KWNM
KRIM
KPOA
KCHG
KOM
KSCI
KFIN
KMOC
KESS
KWAC
KMIG
KSEC
KIFR
KDEMAF
KPRV
KBTR
KERG
KTER
KDDG
KPAK
KRFD
KHUM
KDEV
KCFC
KWWMN
KWMNCS
KJUST
MARR
MOPS
MU
MTCRE
MNUC
MY
MASS
MCAP
MOPPS
MAR
MPOS
MO
ML
MR
MASC
MX
MD
MP
MA
MTRE
MIL
MCC
MZ
MK
MDC
MRCRE
MAPS
MV
MI
MEPN
MAPP
MEETINGS
MAS
MTS
MLS
MILI
MTCR
MG
MC
MARAD
MIK
MILITARY
MEDIA
MEPI
MUCN
MEPP
MT
MERCOSUR
MW
MASSMNUC
MQADHAFI
NZ
NATO
NG
NI
NO
NATIONAL
NU
NPT
NIPP
NL
NPG
NS
NA
NGO
NP
NSG
NDP
NAFTA
NR
NC
NH
NE
NSF
NPA
NK
NSSP
NRR
NATOPREL
NSC
NT
NW
NORAD
NEW
NV
NSFO
NAR
NASA
NZUS
OTRA
OVIP
OPRC
OPDC
OSCE
OAS
ODIP
OIIP
OFDP
OVP
OREP
OFFICIALS
OSAC
OEXC
OPCW
OIE
OIC
OFDA
OSCI
OPIC
OBSP
OECD
ON
OCII
OHUM
OES
OCS
OMIG
OPAD
OTR
PGOV
PREL
PHUM
PINR
PTER
PSOE
PINS
PARM
PK
PBTS
PEPR
PM
POLITICAL
PARTIES
PREF
PBIO
PROP
PA
PSI
PINT
PO
PKFK
PL
PAK
PE
POLITICS
PINL
POL
PHSA
PU
PF
POV
PFOR
PHALANAGE
PARTY
PARMS
PRGOV
PNAT
POLINT
PRAM
PMAR
PG
PAO
PROG
PRELP
PPA
PCUL
PSEPC
PSA
PREO
PAHO
PGIV
PREFA
PALESTINIAN
PAIGH
POSTS
PTBS
PGOVLO
PORG
PGOVE
PLN
PINF
PAS
PUNE
POLICY
PDEM
PDOV
PCI
PGOVSMIGKCRMKWMNPHUMCVISKFRDCA
PBT
PHUMPGOV
PMIL
PNG
PP
PS
PHUH
PECON
POGOV
PY
PHUMPREL
PHUS
PRL
PGOC
PNR
PGGV
PROV
PTERE
PGOF
PHUMBA
PEL
RS
RU
RW
REGION
RP
RICE
ROBERT
RSP
RUPREL
RM
RO
RCMP
RSO
RELATIONS
REACTION
REPORT
RIGHTS
ROOD
RF
RFE
RIGHTSPOLMIL
SP
SA
SY
SF
SYR
SENV
SCUL
SOCI
SNAR
SO
SU
SG
STEINBERG
SHUM
SW
SMIG
SR
SZ
SIPRS
SI
SAARC
SPCE
SARS
SN
SYRIA
SANC
SL
SCRS
SC
SENVKGHG
SAN
SNARCS
SHI
SWE
SNARIZ
SIPDIS
SEN
SNARN
SPCVIS
SEVN
SSA
SH
SOFA
SK
ST
TPHY
TU
TRGY
TI
TX
TS
TW
TC
TFIN
TD
TSPA
TH
TT
TIP
TBIO
TSPL
TZ
TERRORISM
TRSY
TN
THPY
TINT
TF
TL
TV
TK
TO
TP
TURKEY
TNGD
TBID
TAGS
TR
UP
US
UNSC
UK
UZ
UE
UNESCO
UV
UNGA
UN
UNMIK
UNO
UY
UAE
UNEP
UG
UNHCR
UNHRC
USUN
UNAUS
USTR
USNC
USOAS
UNCHR
UNCSD
UNDP
USEU
USPS
UNDC
UNDESCO
UNCHC
UNFICYP
UNC
UNODC
UNPUOS
UNCND
UNICEF
UNCHS
UNVIE
USAID
UNIDROIT
Browse by classification
Community resources
courage is contagious
Viewing cable 09QUITO1026, ECUADOR ECONOMIC NEWS: ECONOMY CONTRACTS, BALANCE OF
If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:
- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #09QUITO1026.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
09QUITO1026 | 2009-10-20 19:07 | 2011-05-02 00:12 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Quito |
VZCZCXYZ0057
RR RUEHWEB
DE RUEHQT #1026/01 2931938
ZNR UUUUU ZZH
R 201937Z OCT 09
FM AMEMBASSY QUITO
TO RUEHC/SECSTATE WASHDC 0210
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHBO/AMEMBASSY BOGOTA
RUEHCV/AMEMBASSY CARACAS 0072
RUEHGL/AMCONSUL GUAYAQUIL
RUEHLP/AMEMBASSY LA PAZ OCT LIMA 0086
UNCLAS QUITO 001026
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON ETRD EINV EFIN EC
SUBJECT: ECUADOR ECONOMIC NEWS: ECONOMY CONTRACTS, BALANCE OF
PAYMENTS IMPROVES, ELECTRICITY SHORTAGES, REDUCTION OF SAFEGUARDS ON
COLOMBIAN PRODUCTS
REF: QUITO 060; QUITO 837; QUITO 938; CARACAS 1284
¶1. (U) The following is a periodic economic update for Ecuador
that reports notable developments that are not reported by
individual cables. This document is sensitive but unclassified.
It should not be disseminated outside of USG channels and should
not be posted on the internet.
----------
Highlights
----------
- Ecuador's GDP Shrinks for Third Straight Quarter
- Improvement in Balance of Payments
- GoE Reduces Safeguards on Colombian Products
- Brazil to Eliminate Tariffs on 3,200 Ecuadorian Products
- Ecuador Could Face Electricity Shortages in Short-term
- Ecuador to Use IMF SDRs to Fund Banco del Sur
--------------------------------------------- ---
Ecuador's GDP Shrinks for Third Straight Quarter
--------------------------------------------- ---
¶2. (U) Ecuador's economy is experiencing a sharp recession after
recording the third straight quarter of negative growth. According
to Central Bank (CBE) statistics, real GDP shrank on a
quarter-to-quarter basis by 0.26% in the second quarter of 2009.
This followed contractions of 1.31% and 0.25% in the first quarter
of 2009 and the final quarter of 2008. Eight of fourteen economic
sectors reported quarterly contractions in the second quarter of
2009: direct financial intermediation (-1.63%), commerce (-1.25%),
agriculture (-0.92%), indirect financial intermediation (-0.79%),
mining and oil (-0.57%), manufacturing (-0.49%), public
administration (-0.35%), and other services (-0.09%). The six
sectors recording growth were: water and electricity (14.28%),
private households (2.98%), construction (2.84%), transport and
storage (1.95%), oil refining (0.89%), and fisheries (0.13%).
Positive growth in the water and electricity sector reflected
substantial government investment in basic services.
¶3. (U) On a year-over-year basis, the economy shrank by 1.06% in
the second quarter, the first annual fall since the second quarter
of 2003. Eight economic sectors contracted on a year over year
basis including petroleum refining (-7.17%), indirect financial
intermediation (-6.24%), commerce (-4.13%), agriculture (-3.04%),
and mining and oil (-2.2%). There was growth in public
administration (6.68%), construction (5.95%) and transportation and
storage (3.52%) sectors.
¶4. (U) The continued contraction of Ecuador's economy largely
reflects the fall in international oil prices from their highs in
2008, and the impact of the global financial crisis. In the second
quarter of 2009, household consumption was down by 1.42% year over
year, government expenditure by 0.28%, and private investment by
2.57%. The unemployment rate rose from 7.3% in December 2009 to
8.3% in June 2009 with an additional 51.7% of the workforce
considered as underemployed. (Note, the unemployment rate
continued to deteriorate reaching 9.1% in September.) On the
external side of the economy, imports fell by 6.32% while exports
contracted by 0.06% during the second quarter of 2009, resulting in
an improvement in the trade balance.
¶5. (U) The CBE has reduced its forecast of real GDP growth from
3.5% to 1% for 2009, while the IMF projects a 1% real contraction.
In 2008, the Ecuadorian economy grew by 6.5%. Most analysts
consider the CBE forecast to be optimistic considering the
substantial growth that would be required in the last six months of
the year to produce a 1% annual growth rate. Private investment
shows no signs of recovery and is dependent on government
investment, which is constrained by limited resources. Remittances
continue to be lower than in 2008 and internal demand has been
decreasing.
----------------------------------
Improvement in Balance of Payments
----------------------------------
¶6. (U) Central Bank of Ecuador (CBE) statistics show an
improvement in the country's global balance of payments, with a
deficit reduction from US$ 1.33 billion in the previous quarter to
a deficit of US$ 605 million in the second quarter of 2009.
Ecuador's capital account deficit worsened in second quarter 2009,
but was compensated by a larger than expected current account
surplus. The GOE's repurchase of some global bonds during the same
period caused international reserves to fall overall to about US$
2.6 billion as of end-June. (Note, by early October international
reserves had rebounded to about US$ 4.6 billion).
¶7. (U) Ecuador recorded a trade surplus of US$ 194 million for the
second quarter of 2009 as exports expanded and imports declined.
This compares to the trade deficit of US$ 735 million recorded in
the previous quarter. The trade surplus coupled with the 10%
increase in remittances from abroad over the previous quarter
brought the current account surplus to US$ 87 million, up from a
deficit of US$ 889 million in the previous quarter. Despite an
increase in foreign direct investment in-flows, the deficit in the
capital account increased from US$ 445 million in the first quarter
of 2009 to US$ 692 million in the second quarter of 2009.
--------------------------------------------
GoE Reduces Safeguards on Colombian Products
--------------------------------------------
¶8. (U) Effective October 15, Ecuador's Trade and Investment
Council (COMEXI) removed exchange rate safeguards on 319 Colombian
products. In January 2009, Ecuador imposed balance of payment (BoP)
safeguard measures broadly on a number of imports (Ref A). In July
2009, the GoE decided that for 1,346 products from Colombia, it
would apply the BoP safeguard tariffs on top of Ecuador's WTO bound
tariff rate, instead of applying it to the preferential tariff rate
Colombia normally enjoyed as one of Ecuador's Andean Community
trading partners. Ecuador justified the action claiming
devaluation of Colombia's peso had unfairly damaged Ecuador's
competitiveness. After an Andean Community decision that went
against Ecuador, the GoE reduced the number of affected products by
roughly one-half and agreed to eliminate safeguards on the
remaining products in three stages (Ref B). Following the most
recent action, safeguards remain on about 350 Colombian products.
All safeguards are expected to be removed by the end of the year.
--------------------------------------------- -----------
Brazil to Eliminate Tariffs on 3,200 Ecuadorian Products
--------------------------------------------- -----------
¶9. (U) On October 2, Ecuador's Vice Minister for Trade, Julio
Oleas, announced that Brazil had agreed to eliminate tariffs on
3,200 Ecuadorian products. This measure, which still needs to be
approved by the Latin American Association for Integration (ALADI),
would benefit Ecuadorian exports of fish, mollusks, fruit, animal
or vegetable fats and oils, cooked meat, vehicles and accessories
and parts. Bananas are not included on the list. In 2008, Ecuador
recorded a trade deficit with Brazil of about US$ 796 million.
--------------------------------------------- ---------
Ecuador Could Face Electricity Shortages in Short-term
--------------------------------------------- ---------
¶10. (U) On September 29, Colombian Minister of Mining and Energy,
Hern????n Martinez, announced that Colombia would gradually restrict
electricity exports to Ecuador and Venezuela to better meet
domestic demand. Roughly 55% to 75% of the energy consumed in
Ecuador is supplied by hydroelectric plants, 25%-32% by
thermoelectric plants, with energy imports from Colombia
fluctuating between 5% and 12%. According to Ecuador's National
Center for Energy Control (CENACE), energy demand in Ecuador ranges
from 2,500 megawatts (MW) to 2,900 MW and is expected to grow at an
annual rate of 5%. Ecuador currently only has about 3,000 MW of
installed energy generation capacity with 500-1,000 MW out of
commission at any one time.
¶11. (U) Initially the GoE had hoped to double energy generation
capacity by 2012 through 17 planned projects. However, many of
these projects have been delayed. The government's revised
estimate is that seven of the 17 projects will come on-line by 2014
to provide an additional 1,115 MW capacity. Only four of these
seven projects are currently under construction: Mazar,
Toachi-Pilaton, Ocana, and Baba. Together they would generate only
an additional 456 MW. The most advanced project is the US$460
million, 160 MW hydroelectric power plant Mazar, which the GoE
expects to have on-line by March 2010. However, that will not
adequately cover the loss of energy from Colombia. The Baba
hydroelectric plant, slated to enter operation by the end of 2010,
will add only 42 MW in capacity. Ocana (26 MW) and Toachi-Pilaton
(228 MW) hydroelectric plants aren't expected to be operational
until 2011 and 2014, respectively. The GoE's largest electricity
generation project on the books is the $2 billion Coca Codo
Sinclair 1500 MW hydroelectric plant which will not be complete
until 2015 or later. In early September, China's Sinohydro was
awarded the construction contract with financing by China's Ex-Im
Bank (ref C).
---------------------------------------------
Ecuador to Use IMF SDRs to Fund Banco del Sur
---------------------------------------------
¶12. (U) On September 27, Argentina, Brazil, Bolivia, Ecuador,
Paraguay, Uruguay, and Venezuela signed the Constitution Agreement
of the Banco del Sur during the Latin American and African
Countries Summit on Margarita Island (Ref D). President Correa has
publicly described Banco del Sur as a mechanism to "finance
development projects." According to news reports, Banco del Sur's
authorized capital will grow from US$ 7 billion to US$ 20 billion
in ten years. Argentina, Brazil and Venezuela will reportedly
contribute US$ 2 billion each and, Bolivia, Ecuador, Paraguay and
Uruguay will contribute lower, differing amounts. Press reports
note that although each country will have the same voting rights on
the board of directors, loans greater than US$70 million will
require the support of two thirds of the bank's paid capital voting
rights, giving Venezuela, Argentina, and Brazil a larger
representation. According to Ecuador's Coordinating Minister for
Economic Policy Diego Borja, Ecuador will contribute US$ 70 million
per year for 10 years to the new bank. The first contribution will
be funded out of the roughly US$ 400 million Ecuador obtained
through the IMFs allocation of Special Drawing Rights (SDRs) in
August and September.
HODGES