A Nation on Edge: Ecuador's Holiday Declaration Amidst Looming Crises

In a move that has left many Ecuadorians with a sense of grim irony, President Daniel Noboa’s administration has declared Friday, January 2nd, 2026, a mandatory, non-recoverable national holiday. The stated goal, according to the official decree, is to “boost tourism and energize the local economy.” However, for a populace grappling with the fresh memory of a debilitating energy crisis and a rising tide of insecurity, the announcement feels less like a gift and more like a diversion from the very real problems casting a shadow over the nation.

The Specter of Blackouts Returns

The timing of this "gift" is particularly striking as the country's electrical grid is once again showing signs of strain. The lack of rainfall in southern Ecuador is causing a significant drop in river flows, directly impacting the reservoirs that feed our most critical hydroelectric plants. As of mid-December, three of Cuenca's four main rivers are approaching low-flow status, with the Tarqui River already classified as low.

This has a direct and immediate effect on the Mazar and Paute reservoirs. According to data from Celec Sur, the Mazar reservoir is at 2,149 meters above sea level, four meters below its maximum and steadily declining. While this is still 39 meters above the critical point that triggered the 2024 blackouts, the downward trend is an unnerving echo of the months preceding that crisis. The Paute reservoir is holding at 1,985 meters, just six meters below its maximum, but this provides a precarious buffer, not a long-term solution.

This vulnerability is exacerbated by the catastrophic failure of recent government projects meant to bolster the grid. The State Comptroller General's Office has revealed multimillion-dollar contracts awarded to companies that failed to deliver. Austral Technical Management (ATM) received an $89 million contract for the Esmeraldas III thermoelectric plant, only to abandon the project, leaving behind damaged and incompatible equipment. Similarly, Progen Industries LLC was awarded $149.1 million for power plants in Salitral and Quevedo; a year later, after paying 70% of the contract, the plants remain offline. With over $100 million effectively squandered between these two projects and no new energy generation to show for it, the government’s insistence that the situation is “stable” rings hollow.

A Fraying Social Fabric

While the government offers holidays, citizens are contending with a security situation that feels increasingly unstable. In Girón, a recent robbery of a cell phone store ended not with arrests, but with vigilante justice. An angry mob captured the two suspects, set their vehicle ablaze, and administered a severe beating before the police could intervene. These events, while shocking, are becoming a grimly frequent symptom of a population that feels unprotected and is losing faith in the justice system.

The danger is not confined to urban centers. The main highway connecting Azuay and Guayas, the Cuenca–Molleturo–El Empalme road, has seen a surge in violent crime. Following an incident on December 12th where a tourist bus was shot at and its passengers robbed, the Armed Forces have been deployed to reinforce control. This comes just weeks after the inauguration of a new "Security Portal" in the same area, highlighting the persistent and brazen nature of the criminal elements. In response to the broader security decline, President Noboa has also announced temporary joint operations with the United States to "identify and dismantle" transnational drug trafficking routes.

The Unexplained and the Untreated

Adding to the general sense of unease are events that blur the line between the natural and the bizarre. In the rural community of Cristo Rey, Gualaceo, an unidentified animal has killed six sheep, devouring one and leaving the others with deep, claw-inflicted wounds. The attacks have stoked fear in the region, with similar incidents reported in nearby parishes. The Ministry of Environment has launched an investigation, but for now, residents are left to wonder what manner of predator is stalking their livestock.

Meanwhile, the human cost of systemic failures continues to mount. In a Cuenca hospital, 22-year-old Félix Suqui is fighting not to be paralyzed after a 15-meter fall at his workplace a month ago. He requires urgent surgery, but the hospital lacks the necessary supplies, and the company where the accident occurred has fallen silent. In Milagro, the family of an 11-year-old girl is demanding answers after she fainted at school and was declared dead on arrival at the hospital. The autopsy revealed a fractured cervical spine, a finding that starkly contradicts the initial information provided by the school.

A Hollow Gesture?

In this context, the new salary increase of $12, bringing the monthly basic wage to $482, feels like a drop in the ocean, especially when accounting for the additional 40-45% in social security and other benefits that represent the true cost of employment in Ecuador.

The government's decision to grant an extra holiday, justified as an economic stimulus, appears to be a profound misreading of the national mood. It’s a short-term palliative in the face of long-term, structural crises. While a day off might be a welcome distraction, what Ecuadorians truly need is a reliable power grid, safe streets, a functioning healthcare system, and a government that confronts these challenges with the seriousness they deserve. Until then, the new holiday serves only as a stark reminder of the widening gap between the government's priorities and the people's needs.

Javier V.

10-year immigrant in Cuenca, Ecuador

Member of multiple local business circles and communities, including many English-speaking expat groups

Sources

* On the declaration of the January 2nd holiday:

* Source: Primicias

* Link: https://www.primicias.ec/sociedad/feriado-obligatorio-ano-nuevo-ecuador-daniel-noboa-decreto-2enero2026-112014/

* On the status of the electrical grid, river flows, and failed contracts:

* Source: RadioPichincha

* Link: https://www.radiopichincha.com/lluvias-contratos-fallidos-progen-atm-mazar-descenso

* Source: El Mercurio

* Link: https://elmercurio.com.ec/actualidad/2025/12/16/bajan-caudales-hidroelectricas-paute

* On the general forecast of drought and risk of blackouts:

* Source: Sucua TV

* On the unidentified animal attacks in Gualaceo:

* Source: El Mercurio

* Link: https://elmercurio.com.ec/region/2025/12/15/animal-mato-ovejas-gualaceo

* On the vigilante justice incident in Girón:

* Source: SucuaTV & Codigo Cuenca

* Link: https://www.facebook.com/codigocuenca

* On military reinforcement on the Cuenca – Molleturo – Naranjal highway:

* Source: El Mercurio

* Link: https://elmercurio.com.ec/cuenca/2025/12/15/militares-cuenca-molleturo-asalto

* On joint security operations with the United States:

* Source: Radionoticias Cuenca

* Link: https://www.facebook.com/radiocuenca1180am

* On the death of a young girl in a Milagro school:

* Source: Teleamazonas

* Link: https://www.teleamazonas.com/actualidad/noticias/sociedad/nina-fallecio-escuela-milagro-sufrio-fractura-columna-cervical-107900/

* On the case of Félix Suqui and the lack of hospital supplies:

* Source: UnsionTv Comunidad

* Link: https://www.facebook.com/UnsionTV

* On the increase of the Basic Unified Salary:

* Source: Macas news

* Link: https://www.facebook.com/macasnews

Unlock More Essential Expat Insights

Don't navigate the exciting, yet often complex, world of expat life in Cuenca alone. Our newsletter is your direct line to even more powerful insights on the specific pain points we've discussed, offering practical solutions and strategies gleaned from years of on-the-ground experience.

Beyond advice, we'll also share trusted recommendations for service providers – from reliable facilitators and legal experts to property managers and community groups – who consistently go the extra mile to support expats like you. Think of it as your curated list of allies dedicated to your successful transition and long-term happiness in Ecuador.

Ready for More?

Subscribe to our newsletter today and empower your Cuenca experience with the knowledge and connections you need to thrive.

Facebook logo image with link to Cuenca Expat HUB Facebook page
Instagram logo with link to the Cuenca Expat HUB Instagram channel
X logo with link to the Cuenca Expat HUB X channel