By Catalino Hoyos | 2024-10-22

QUITO -- An attempt to supply cooking devices to Ecuadorian families has become another scandal afflicting Ecuadorian-Chinese ties.

The Efficient Cooking Program (PCE) has never escaped multimillion-dollar annual losses, a lack of transparency and serious corruption allegations nearly a decade after its launch by then-Ecuadorian President Rafael Correa in partnership with the Chinese government.

The social project, launched in 2014 with the promise of improving energy efficiency and reducing gas consumption, has become another costly burden for Ecuador.

It adds to the growing concerns over the country's loss of sovereignty due to its deepening dependence on Beijing.

The Ecuadorian government initially planned to import 1 million induction cookers, letting citizens buy them on installment plans. To fund this initiative, it secured a $250 million loan from the Export-Import Bank of China.

Of the million induction stoves the government initially planned to acquire, only 342,000 were delivered to Ecuador under three contracts signed in 2015 with Chinese firms Haier and Midea, totaling $55.35 million.

Of those stoves, some were scrapped, others sold, a portion donated and the remainder now sit unused in warehouses, according to an in-depth investigation conducted by Ecuadorian journalist Christian Zurita and the Mil Hojas Foundation.

"Of the total [342,000], only 62,572 stoves were delivered to the beneficiaries from 2015 to now," Zurita told Entorno. "Additionally, approximately 4,428 stoves were reported as damaged."

The damaged stoves are sitting in storage units.

It remains unclear how many stoves are still stored by the National Electricity Corporation (CNEL) and were never delivered to the intended beneficiaries of the PCE, he added.

Debts for Ecuadorians

While the exact location and condition of tens of thousands of induction stoves manufactured in China remain unknown, recent investigations have confirmed that some of these appliances are stored in warehouses that are billing the government.

"It's been reported that former officials from the [government's] Energy Efficiency Unit have left their positions to establish their own warehouses," Zurita said.

Last December, CNEL issued an open call through the Official Public Procurement System to seek providers for leasing and managing warehouses to hold all those cookers.

The estimated award date was set for February 5, and the contract had a reference budget of $839,220 plus sales taxes.

The government sold some cookers to the public for about $800 each, through installments added to buyers' power bills, the online newspaper Vistazo reported.

However, many households were unable to change their power supply from 110 to 220 volts, which the new cookers required, leaving them unable to use the appliances.

The program aimed to recoup its investment in the induction cookers sold on credit by 2024; however, it has recovered very little to cover the outstanding debts.

Lack of transparency

The defining characteristic of the PCE has undoubtedly been the secrecy surrounding its management over the past decade.

As Ecuador suffered scheduled but disruptive power outages throughout 2024, former-Energy Minister Andrea Arrobo faced a backlash for publicly acknowledging the existence of induction cookers that remained in storage and should have been made available.

President Daniel Noboa requested her resignation after barely four months in office (December 2023 to April 2024).

In a January radio interview, Arrobo emphasized that the project remained active, stating that it could not be terminated because the government was still trying to sell stoves to pay back its debt to China.

"The PCE has no closing date; it is an ongoing investment project. There are still induction cookers available, and they should not be left in storage," Arrobo said during an interview with Primera Hora radio.

Arrobo, who is accused of dereliction of duty linked to the power outages plaguing the country, declined Entorno's request for an interview due to ongoing legal proceedings.

Since April 16, the former minister has been under investigation alongside 20 other officials from the electricity sector, accused of causing disruptions to public services following the recent reinstatement of blackouts in Ecuador.

The failed induction cooker program adds to the growing list of agreements China has pushed to increase Ecuador's economic dependence and undermine its sovereignty.

The debt Ecuador took on to buy the cookers exemplifies the "debt trap" phenomenon, which has left Ecuador among numerous countries reliant on Beijing.