Ecuador's new Public-Private Partnership (PPP) regime, initiated by President Daniel Noboa, aims to attract substantial foreign investment into the country's infrastructure sector. The scheme, developed with the International Finance Corporation (IFC), currently encompasses projects exceeding US$10 billion, covering sectors like sanitation, energy, telecoms, and transport. Local lawyers, including our Partner Javier Robalino, view the new regime as more flexible and robust than previous legislation. The government projects that each US$1 billion invested will generate 30,000 to 40,000 direct and indirect jobs. To make these projects more attractive, the PPP scheme includes regulatory guarantees, such as long-term contracts and property rights protections, managed through special-purpose vehicles to secure investor returns.

However, the success of this ambitious plan hinges on the outcome of the upcoming presidential runoff election. While the current regime is seen as promising, uncertainty remains regarding the new administration's commitment and implementation. Lawyers emphasize that political will is crucial to advancing and structuring viable PPP projects. Despite potential delays due to government transitions, there's optimism, drawing on successful examples from Chile and Peru, where PPP frameworks have persisted and even improved through political changes. Legal professionals anticipate increased demand for specialized services in project finance, regulatory law, and ESG, advising firms to expand their PPP expertise and foster strategic alliances to capitalize on the sector's growth.

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