Ecuador suspends $42.7 million contract for Karpowership barge

Ecuador's National Public Procurement Service (Sercop) has suspended the contracting process led by the state company Elecaustro to extend the operation of the Erin Sultan, a thermoelectric generation barge owned by the Turkish firm Karpowership.

The procurement process, which carries a reference budget of $42.7 million for six months of service, aims to maintain a generation capacity of between 90 and 110 megawatts in the Las Esclusas sector of southern Guayaquil. As of late August, the process remains suspended on the Sercop portal without a specified reason or a date for resumption.

The suspension occurs at a critical time as Ecuador approaches the dry season (estiaje), typically starting in September. During this period, river levels drop, reducing the output of hydroelectric plants, which account for approximately 70% of the country's electricity demand. Increased thermoelectric generation is necessary to prevent power rationing. The Erin Sultan is one of three barges provided by Karpowership; while the Murat Bey has extended its contract until 2028, the Emre Bey previously ceased supplying electricity following a failed renewal process.