World Bank expands Ecuador infrastructure finance program

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Ecuador infrastructure finance expansion

Highlights

The World Bank launched a Multiphase Programmatic Approach with Banco de Desarrollo del Ecuador B.P. to deliver infrastructure finance across Ecuador over three phases in ten years.
First-phase funding includes U.S.$200 million from the World Bank and U.S.$50 million parallel co-financing from AECID, with up to U.S.$750 million in private capital expected to be mobilized during the program.
More than three million Ecuadorians are expected to benefit from improvements in connectivity, energy, urban infrastructure and housing, supporting job creation and local economic growth.

Program structure and first-phase funding

As announced by the World Bank, the new financing program is being delivered through a Multiphase Programmatic Approach and implemented by Banco de Desarrollo del Ecuador B.P. over three phases spanning a decade. The structure is intended to expand resilient infrastructure finance for local governments and public service providers across Ecuador.

The first phase includes U.S.$200 million in World Bank financing, alongside U.S.$50 million in parallel co-financing from the Spanish Agency for International Development Cooperation, AECID. Over the life of the program, the initiative is expected to mobilize as much as U.S.$750 million in private capital for infrastructure investment.

Carlos Rivera, general manager of BDE B.P., says the financing marks a milestone for the institution and will expand its capacity to support municipalities, provincial governments and service providers. He adds that the program also supports the bank's institutional transformation and its ability to mobilize funding from new sources.

Expected benefits for Ecuador's local economy

More than three million people are expected to benefit from improved connectivity, energy access, urban infrastructure and housing during the life of the program. The initiative is aimed at helping improve essential services, create jobs, raise productivity and support sustainable economic growth.

During the first phase, funding supports investments in energy, transport and sustainable mobility, urban development, disaster risk management and affordable housing. It also finances project preparation and strengthens the technical and institutional capacities of BDE B.P. and subnational governments to improve planning and execution of higher-quality investments.

Ariel Yépez, the World Bank's division director for Bolivia, Chile, Colombia, Ecuador, Peru and Venezuela, says the program supports Ecuador in developing infrastructure projects that help close infrastructure gaps, create jobs and promote sustainable growth at the local level.

Our earlier report on Ukraine’s push to mobilize private capital for wartime resilience and reconstruction described talks with major financial firms and development institutions on funding critical infrastructure and longer-term rebuilding plans. It also highlighted the mounting budget strain from infrastructure attacks and the parallel support aimed at keeping essential energy, heating, and water services running through the winter.

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