Security

Controversial Chinese firm builds prison in 'protected' Ecuadorian zone

The state-owned China Road and Bridge Corporation (CRBC), notorious for corruption in Ecuador, was granted the prison contract without a competitive bidding process.

Members of the Bajada de Chanduy community, where the state-owned China Road and Bridge Corporation (CRBC) is constructing a maximum-security prison, during a protest in Santa Elena against the prison's construction. [Standing Committee for the Defense of Human Rights (CDH)]
Members of the Bajada de Chanduy community, where the state-owned China Road and Bridge Corporation (CRBC) is constructing a maximum-security prison, during a protest in Santa Elena against the prison's construction. [Standing Committee for the Defense of Human Rights (CDH)]

By Catalino Hoyos |

QUITO – The "Cárcel del Encuentro," a maximum-security prison in Ecuador under construction by a Chinese company with a record of scandals, has drawn intense criticism from human rights groups and Indigenous communities.

In response to the surge in violence that has gripped Ecuador in recent years, the Ecuadorian government invited the state-owned China Road and Bridge Corporation (CRBC) in June to construct a prison in Santa Elena province, strategically far from areas dominated by organized crime.

At the end of that month, the $52 million contract for the project went to Puentes y Calzadas Infraestructuras, a subsidiary of CRBC, through a direct and confidential procurement process, meaning no other bidders were considered.

"All information regarding the characteristics and technical specifications of the Santa Elena Prison Construction Project, covered by this contract, has been classified as confidential," stated the invitation issued by Ecuador's Comprehensive Service for Prisoners (SNAI) to CRBC.

The site of a maximum-security prison under construction in Santa Elena province, Ecuador. [Government of Ecuador]
The site of a maximum-security prison under construction in Santa Elena province, Ecuador. [Government of Ecuador]

Multiple organizations, including Ecuador's National Anti-Corruption Commission, have raised concerns about the selection of CRBC -- a company facing numerous accusations in Ecuador related to delays, revenue losses, lack of transparency, corruption and other problems -- to construct the project.

"We found it absurd that this company and its subsidiary were invited to construct the Santa Elena prison when they could have chosen any contractor. This was an invitation, not a government-to-government contract," stated Germán Rodas, coordinator of the commission, in an interview with Ecuavisa on early July.

Irregularities

The "Cárcel del Encuentro" faces several irregularities, including issues with land allocation for its construction.

It lacks a comprehensive study on its environmental and archeological impact, and some Indigenous communities allege it is being built in a protected area -- an assertion the government has dismissed.

During his recent visit in October to inspect progress on the construction of the prison, Ecuadorian President Daniel Noboa noted that the penitentiary project in Bajada de Chanduy, a commune in Santa Elena, is 30% complete.

On his visit with Noboa, Gen. (ret.) Luis Zaldumbide, director general of the SNAI, announced that the project is slated for completion within 300 days.

The construction covers 12.2 hectares.

This is not the first time the Chinese firm CRBC has faced serious corruption allegations in Ecuador.

In August 2021, it was revealed that the construction company CRBC had subcontracted 100% of its work for the expansion of a highway connecting the provinces of Pichincha and Napo.

A report from the comptroller general at the time disclosed that CRBC handed all the work to an Ecuadorian company whose major shareholder had been sentenced in 2020 to eight years in prison for bribing Alianza PAIS, the political party of former President Rafael Correa, in exchange for projects.

This subcontracting violated a clause limiting third-party work to 30% of the total project.

The report also found that low-quality materials were used, and Ecuador paid for cost overruns, much of which ended up with the Chinese company.

The project went to CRBC in 2012 even though Ecuadorian authorities knew the company had been blacklisted by the World Bank in 2009 over charges of corruption related to its actions in the Philippines.

Between 2012 and 2017, CRBC secured four more projects in Ecuador under a special regime, meaning it was the only company invited to participate, as with the "Cárcel del Encuentro."

Seizure of ancestral lands

On October 16, Juan Jarab, the United Nations human rights representative for South America, held a virtual meeting with members of the Bajada de Chanduy community, Indigenous leaders and local human rights organizations to discuss the impacts of the prison construction in an area they consider "protected."

During the conversation, community representatives highlighted that the prison project had not undergone a prior, free, informed and culturally appropriate consultation.

Participants discussed how the project would violate fundamental rights, including the right to water, a healthy environment and biodiversity.

In response, Jarab expressed concern over the policy of building prisons as a solution to the unprecedented insecurity crisis facing Ecuador.

He also reminded participants that previous efforts to build prisons away from urban areas have not yielded positive results, both in Ecuador and abroad.

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