‘Ecuadollars’ resurface in tv debate; Esmeraldas oil spill gets ‘worse and worse,’ expert says; Movistar and Claro contract negotiations near completion

Citizens Revolution National Assemblywoman Paola Cabezas says Ecuador should revisit a plan to establish a digital currency to “complement” the U.S. dollar. “This was proposed by President Rafael Correa to be used internally while the dollar would continue to be used for international transactions,” she said on the Ecuavisa Politically Correct news broadcast. “We need Ecuadorian-style dollarization that serves Ecuadorians, not foreign interests.”

National Assemblywoman Paola Cabezas

Construye Assemblyman Jorge Peñafiel, who appeared on the same program, accused Cabezas of proposing a new “Ecuadollars,” which would not be backed by U.S. dollars. “Let’s be clear, dear Paola, you are talking about ecuadollars that have no support other than the Central Bank, which has no support other than the U.S. dollars it holds in reserve,” he said. “You are talking about devaluing the dollar, of changing the value of the dollar, through digital means. This was brought up in the past and rejected overwhelmingly by the Ecuadorian people.”

Cabezas responded that her proposal, “which will be considered following the election,” would strengthen the dollar, not weaken it, but provide more liquidity for national transactions. She pointed out that Ecuador already produces a parallel coin currency, in denominations up to 50 cents.

Peñafiel suggested that the introduction of an unsecured digital currency would be “the road to ruin like we see in Venezuela.” He added: “We cannot forget that there is only one dollar, and it is the one issued by the United States of America.”

Oil spill gets ‘worse and worse’
“This is the worst oil spill in years, and maybe the worst ever,” says biologist Freddy Orlando. “And, as more reports come in, the extent of damage seems to get worse and worse.” Orlando, who teaches at San Francisco University in Quito, is one of several scientists on site of the Esmeraldas River spill.

The Esmeraldas River oil spill is causing extensive damage that gets worse by the day, experts say.

What makes the damage so far-reaching, Orlando says, is that the rupture occurred on the country’s largest pipeline, the Trans-Ecuadorian, and the oil flow was not stopped for five or six hours. “The pipeline transports more than 350,000 barrels of crude oil a day, which means it is under intense pressure. When it breaks, as in the case of Thursday’s landslide, that pressure releases thousands of gallons of crude into the rivers and the environment.

Although the rupture is affecting a large area in northern Esmeraldas Province, including the city of Loja, the most severe damage is in Quinindé, a town of about 15,000. Quinindé Mayor Ronald Montero says 4,500 families are suffering from the pollution. “It’s terrible here, especially near the river. People are having trouble breathing because of the fumes.”

The spill has not only contaminated the Esmeraldas River but several smaller tributaries. According to the Environmental Ministry, at least 32 kilometers of rivers and streams has been affected, as have the beaches and marine areas at the mouth of the river.

The spill has shut down drinking water supplies in Quinindé, Esmeraldas and at least a dozen smaller communities. In addition, farmers who irrigate their crops with river water have been told to close their irrigation canals.

Fishermen on the river and in the ocean, near the mouth of the Esmeraldas River, are reporting large numbers of dead fish. In addition, Orlando said the spill is killing and injuring wildlife near the river.

Movistar and Claro negotiations near completion
Negotiations to renew cell phone service contracts with Movistar and Claro are in their final phase and should be complete by the May deadline set by the Telecommunications Ministry. “There are a few sticking points,” says Telecommunications Minister César Martín. “These are being resolved through an international arbitration process.”

Among key interests for the government, Martín says, are extending and improving cell service in rural areas. “We want more transmission towers in these areas to improve coverage to under-served populations.”

Martin describes the contracts with Otecel (Movistar) and Conecel (Claro) as “very detailed and complicated,” involving radio spectrum concessions and reviews of financial statements. “We have to balance the interests of the state and the people of Ecuador with the corporate interests of the two providers,” he said.