Minas San Francisco, Correa's Failure Responsible for Power Outages in Ecuador

Since its inauguration in January 2019, the Minas San Francisco hydroelectric plant, located between the provinces of Azuay and El Oro, has operated at less than 50% of its installed capacity, which is 270 megawatts.

This project, designed to alleviate Ecuador's energy crisis, has been a resounding failure, with a series of problems stemming from decisions made during Rafael Correa's government, who promoted the construction of the plant.

Delays in construction and lack of planning

The construction of Minas San Francisco began in 2011, during Correa's administration, and was carried out by the Chinese firm Harbin Electric International. However, the project suffered severe delays, preventing the plant from being ready when the country needed it most.

Meanwhile, Ecuador is going through an electrical crisis with scheduled outages of up to 14 hours, the plant has not managed to operate at its maximum capacity, and the results obtained so far are insufficient to meet the country's demand.

Problems with water resources: A poorly conceived plant

One of the most serious problems of Minas San Francisco is that the plant doesn't have enough water to operate at its maximum capacity. According to electrical consultant Ricardo Buitrón, studies conducted in the 1970s already indicated that the flow of the Jubones River, the main water supplier for the plant, was not sufficient to generate the planned 270 megawatts.

However, during Correa's administration, these studies were ignored, and it was decided to build a reservoir of only 14 million cubic meters, when what was necessary to ensure the plant's operation was much greater.

The lack of an adequate water transfer and a larger reservoir was a key decision that has severely affected the plant's operational capacity. Instead of having designed an adequate water storage and distribution system, as required, Correa's government allowed the project to proceed without considering these crucial aspects.

The impact of drought: Aggravated energy crisis

The energy crisis facing Ecuador has been exacerbated by the drought affecting the country. In 2024, Minas San Francisco has operated at only 33% of its capacity, generating just 89 megawatts until November, much less than the 270 megawatts it should produce.

The flow of the Jubones River has been insufficient, averaging 29 cubic meters per second, when a flow of 65 cubic meters per second is needed to operate at full capacity.
The situation worsens in the months of November and December, when the river's flows reach their lowest levels of the year, leaving the plant practically out of service.

The corruption behind the project: An unsolved scandal

In addition to the technical problems, the Minas San Francisco plant has been embroiled in a corruption scandal. The project's supervisory company, Caminosca, has been accused of having paid bribes of more than 3 million dollars to public officials since 2012.

This corruption not only compromised the project's transparency but also affected the quality of its execution.

The audit report conducted by the company BDO, at the request of the Australian firm Cardno, revealed serious irregularities in Caminosca's financial statements, leading Cardno to file an arbitration against the company's former shareholders.

In Ecuador, the case prompted investigations by the Attorney General's Office, involving high-ranking officials and former officials of Correa's government, including former Vice President Jorge Glas.

A legacy of poor decisions

Minas San Francisco is a clear example of inefficiency and lack of foresight in infrastructure projects promoted by Rafael Correa's government. The plant, which was supposed to be a key solution to Ecuador's energy crisis, has become a symbol of the shortcomings of the public administration under Correa.

The lack of adequate planning, corruption, and the inability to make decisions based on solid technical data have left Ecuador vulnerable to an electrical crisis that affects millions of citizens.

While the country continues to face blackouts and a growing energy shortage, the failure of Minas San Francisco is a reminder of how wrong decisions and lack of accountability in public management can have devastating consequences for the future of a nation.