19 November 2002 – A $500m concession to construct and operate Ecuador’s Mazur Hydro-electric plant has been postponed by the Electrification Council due to irregularities in the contract.

The winning consortium, led by Spain’s Union Fenosa was supposed to have formalized arrangements for the 30-year concession on 31 October, having been awarded the contract on 18 April.

Diego Perez Pallares, president of the Council admitted that the contract had legal shortcomings some of which they were responsible for. He said the ACS-Cobra-Omegaport consortium, in which Union Fenosa owns a 40% stake, needs to domicile itself in Ecuador, alongside other changes in the contract to comply with local laws.

Ivan Rodriguez, an advisor to ACS-Cobra-Omegaport, said the consortium’s board of directors, based in Madrid, is analyzing the situation and should make a decision in the coming days about how it plans to proceed.

Energy Minister Pablo Teran is also recommending that the next government sign the final contract.