Ecuador pens PPP structuring agreement with IFC

Ecuador's public-private investment agency APP and the World Bank's private financing arm IFC signed an agreement to structure three road corridors that are part of the country's PPP portfolio.

The corridors are Manta-Quevedo, Montecristi-Jipijapa-La Cadena and Pifo-Y de Baeza, which involve estimated total investments of US$370 million.

“We will help in the financial and risk structuring of the PPPs and support feasibility studies,” IFC country head Sergio Suárez told BNamericas.

Suárez added that Ecuador has great potential and an opportunity to attract private investment and develop infrastructure under the PPP modality.

Given that there are more advanced studies on the Manta-Quevedo and Pifo-Y de Baeza corridors, tenders are expected to be held next year.

Advancing the three corridors is a solid step to attract private investment, with the IFC quality seal, with better social and environmental practices and ensuring that the projects are financially feasible and generate positive social impacts, Suárez said.

The government also launched a PPP registry on July 2, which contains detailed information on the first seven projects qualified by the interinstitutional public-private partnerships commission.

In addition to the three corridors, the registry includes the Bahía-Pedernales-Cojimíes, Ambato-Baños-Puyo and Loja-Catamayo road projects, as well as the Esmeraldas multipurpose port terminal.

New projects will be added periodically.

The registry is integrated into Source, a platform developed with financing from multilateral banks and whose adaptation and application process was supported through the Euroclima Program by German development agency GIZ.

Cédric van Riel, project development director of Sustainable Infrastructure Development Foundation, the company that developed Source, said during the platform's launch that it represents an effective technological solution to manage private sector financing for public infrastructure.

Experts hope that the structuring of the first three projects by the IFC will give renewed impetus to the country's infrastructure sector and attract international financiers for upcoming large projects that enter the registry.

One of the possible entrants is the US$700mn southern bridge for Guayaquil, expected to facilitate access to the city, specifically its port facilities, and provide a link to Durán.