Ecuadorean President Rafael Correa on Tuesday ordered the temporary seizure of all local assets owned by Brazilian construction company Norberto Odebrecht, which it blames for a drop in electricity production.
The leftist president also suspended the constitutional rights of several of Odebrecht's Brazilian executives and ordered that they not leave the country.
The actions are part of a presidential decree Correa issued Tuesday, a copy of which was obtained by The Associated Press.
In it, the president claimed the country's electric service has worsened since a hydroelectric center constructed by Odebrecht in the central province of Tungurahua went offline on June 6. The center was expected to supply 12 percent of Ecuador's electricity.
Correa blames the plant's shutdown on construction mistakes committed by Odebrecht. The company has denied the charges, arguing that volcanic ash from the nearby Tungurahua volcano has caused unanticipated erosion of the tunnels and machinery at the plant's entrance.
The Tungurahua volcano has been active for 10 years, dumping ash on nearby villages as recently as February and July.
A person who answered the telephone at Odebrecht's offices Tuesday afternoon said the company planned to comment on Correa's decree on Wednesday.
Ecuador's government has demanded US$43 million in lost profits from Odebrecht following the shutdown of the plant, which cost US$338 million to build.
Two weeks ago, the government advised Odebrecht that if it did not repair the plant it "should get ready to leave" and lose all of its contracts in the country. Odebrecht manages four large construction projects worth US$500 million in Ecuador.
Correa said Tuesday he was declaring a state of emergency in the electricity sector as a preventive measure. No blackouts or energy rationing have occurred, but the declaration allows the government to take over private properties for public use.
The decree did not indicate how long the government plans to take over Odebrecht's properties. This is the first time Correa has taken such action.
Under the previous administration, officials took over private properties for days or weeks at the most.









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