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Ecuador sues U.S. company for alleged breach of thermal power contracts

Source: Xinhua

Editor: huaxia

2025-12-17 09:50:15

QUITO, Dec. 16 (Xinhua) -- Ecuador has filed a lawsuit in the United States against Progen Industries LLC, a U.S.-based power generation company, for allegedly breaching thermal power generation contracts signed during the country's 2024 energy crisis, President Daniel Noboa said Tuesday.

The Ecuadorian government will pursue all legal avenues to secure full compensation for the country, said Noboa.

The case was brought forward by CELEC, Ecuador's state-owned electricity company, which signed two contracts with Progen during last year's energy emergency, when power outages lasted up to 14 hours per day.

Energy and Environment Minister Ines Manzano said that the lawsuit was filed under the U.S. Racketeer Influenced and Corrupt Organizations Act, which allows for triple damages in cases involving organized corruption.

The contracts, worth 149.1 million U.S. dollars, covered equipment for two thermal power projects in Quevedo and El Salitral, located in the coastal provinces of Los Rios and Guayas.

In July, Ecuador's comptroller found that the directly awarded contracts may have resulted in losses of 100 million dollars for the state. The case is also under investigation by Ecuador's attorney general.

Meanwhile, Progen Industries has launched international arbitration proceedings to defend the legality of the contracts.