Ecuador expects US$7bn in PPP investments in 2018-21

Ecuador's President Lenín Moreno says that upcoming investments through public-private partnerships (PPP) are expected to reach US$7bn between 2018 and 2021, and that the initiatives will benefit the infrastructure, energy, hydrocarbons, telecommunications, mining and transport sectors.

During the presentation of a fiscal and economic stabilization program, Moreno said that PPP projects in these areas are expected to bring in US$268mn in additional revenues for the state during 2018, while the additional revenues expected for the whole 2018-2021 period will reach nearly US$1.6bn, state news outlet El Ciudadano reported.

"We create the conditions that are necessary for production... it is the time for the private sector to invest, to take advantage of these conditions," Moreno was quoted as saying.

The plan also includes expanding access to productive and investment loans in the financial market, as well as implementing measures to incentivize the entrance of foreign financial entities.

The government's economic plan also entails cutting US$1bn in public spending by reducing the size of government, eliminating ministries, secretariats, vice ministries and sub-secretariats, as well as by eliminating seven of the 22 public companies managed by the government.

Other aspects include a revision of tax laws, although Moreno emphasized that taxes will not be raised.

"We will collect an additional US$810mn between 2018 and 2021, through control measures that are being implemented by SRI [the internal tax service] and the customs service. The objective is to fight tax fraud," said Moreno.