Ecuador's projects financed by PPP rank badly in the evaluations

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Ecuador requires private investments of the US$ 135 billion between 2029 to 2040 for the execution of small and large scale infrastructure projects in sectors of roads, mining, electricity and oil, according to estimation from Global Infrastructure Outlook. Ecuador government has plans to finance this investment through Public-Private Partnerships or PPPs, but according to several agencies, the country is poorly ranked in indicators for the formation of PPP procurement.

According to a survey done by Infrascope Ecuador ranks 18 out of 20 Latin American and Caribbean countries, the survey includes the quality of regulation, institutions, the business and investment climate and access to financing, among other items.

In the World Bank PPP ranking, Ecuador is ranked 16 out of 18 countries, this index includes preparation for PPPs, PPP Search and PPP contract administration.

Ecuador's goal is to award concessions of 21 road corridors, which represents 38% of the state road network. Ecuador plans to save approximately US$ 1,900 million in investment in road infrastructure and about US$ 500 million in maintenance through a management PPP model.

The Government is also expecting private sector participation in the energy sector through projects of Integral Santiago Hydroelectric Project Aluminum Plant and Integral Management of Mazar Molino and Sopladora cascade hydroelectric power plants.

The oil sector and mining sector projects are also planned to be procured through PPP model.

Among the public projects that could be licensed under the PPP model are:

  • The construction, equipment and operation or maintenance of a new public work related to service of general interest.
  • The rehabilitation or improvement of existing public works.
  • The equipment when the required investment is substantial.
  • The operation and maintenance of an existing public work when substantial improvements are justified.
  • The construction and commercialization of real estate projects, housing projects that have a social interest and urban development works.
  • Productive, research and development activities.

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