Ecuador seeks to reactivate large investment projects in strategic sectors

The government of Ecuador’s President Guillermo Lasso, who took office on May 24 for the next four years, plans to reactivate an ambitious concessions plan to attract foreign investment in various sectors, especially those considered strategic for the country.

During the Ecuador: Investment Opportunities event, organized by Canning House, energy and non-renewable natural resources minister Juan Carlos Bermeo told investors that it is time for private investment in the South American country.

“We have a president who has the best reputation in Latin America. We’re in a very interesting political environment and context, which, although sensitive, is full of opportunities,” said Bermeo.

The portfolio of projects in the oil sector involves investments of almost US$10bn, including concessions for the Monteverde maritime terminal, which is used for the reception and commercialization of liquefied petroleum gas; the Esmeraldas refinery, with the capacity to refine 110,000b/d; two oil rounds for small blocks located between large blocks; and one round to explore the southeast.

The projects are not new and some of them, such as the Esmeraldas refinery, saw important progress during the previous government of Lenín Moreno, and others such as the southeast round, will face fierce opposition from indigenous communities.

In the power sector, Bermeo spoke of awarding concessions for the Sopladora, Cardenillo and Santiago hydroelectric projects.

MINING

Regarding the mining sector, Bermeo said the government is looking for investors to construct a gold refinery, a slurry pipeline to transport minerals from the Amazon to ports, a mining rail line and industrial parks, although he recognized that these are longer-term projects.

"I’m convinced that the future of the country is in mining and we’re going to take all the steps aimed at foreign investment that will allow the future of Ecuador to be much more attractive and guarantee development and wellbeing for the population."

Ecuador expects mining exports to increase 74% this year compared to 2020 to US$1.6bn.

Bermeo offered to speed up procedures, reducing red tape, so exploration companies can start work as soon as possible.

Investors who attended the event said that to improve conditions in the oil sector, the Lasso government has already taken the first steps by issuing, in recent days, a decree that sets the guidelines of policy for the next 100 days, and asked for similar measures for the mining and natural gas sectors.

Photo: Ministry of Energy