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www.ebizguides.com
STRATEGIC SECTORS
It is easy to do business in Ecuador
• Defer the payment of the Income Tax and its down
payment, for 5 years.
• In case of asking for a credit to finance the purchase
of shares, interest payments will be exempt from
paying the Income Tax.
Investment & Legal Framework
Ecuador has several strategic sectors that are
facilitated by its location, flexible policy and economic
performance – these areas should be considered by
potential investors.
A total of USD4.546 million has been invested in
strategic sectors between 2007 and 2009: USD
3.077 million in Oil and Gas; USD 554, 6 million in
Water Resources, USD 474 million in Electricity and
USD 441 million in Telecommunications.
The main objectives of the Government are to build
infrastructure to meet the demands of 14 million
Ecuadorians, to exploit strategic areas in the country,
to generate resources that will benefit the entire
population and to acquire resources that will allow
the development of these areas.
Four Ethical Principles for Foreign Investment
There are four ethical principles set out by the
Government, which must be met:
- Respect for employees’ rights
- Fair prices regarding the offer of goods and services
- Compliance with tax obligations
- Respect towards Ecuador’s environment
Ecuador opens its doors to receive foreign
investment of mutual benefit that will contribute to
development and growth.
Organization of the Strategic Sectors
The Coordinating Ministry for Strategic Sectors
proposes, coordinates, executes, articulates,
controls and evaluates policies, projects, inter-
sectorial strategies and action plans that the
Ministries of Non Renewable Natural Resources
(old Ministry for Oil and Mining), Electricity and
Renewable Energies, Telecommunications and the
National Secretariat for Water Resources undertake
and administrate to fulfill the National Development
Plan and improve the Ecuadorian’s everyday quality
of life. Additionally it carries out specific programs
that enhance the new sustainable development
model of the country.
What are the strategic sectors?
The Ecuadorian Constitution considers the following
sectors to be strategic:
• Energy
• Telecommunications
• Nonrenewable energy
• Oil and gas refining
• Biodiversity and genetic heritage
• Water
What are the strategic objectives?
1. TO BE SOVEREIGN, with self-sufficiency in the
generation of electricity, oil and gas (by-products)
refinement, access to ICT systems and secure
management of water resources.
2. TO BE PRODUCTIVE, with quality in electricity
and telecommunications services; oil and gas,
mineral exploitation; and efficient use of water
resources.
3. TO BE INCLUSIVE in the provision of public
services accessible to the entire population, and to
have access to exploit resources and benefit from
their income.
Transparency in public contracting
Public contracting processes will be carried out
through the National Institute of Public Procurement
(INCOP) that articulates, harmonizes and
controls the execution of works made with public
resources through speedy, transparent, efficient
and technologically updated procedures that ease
control works both with the contracting entities as
well as with the suppliers and citizens in general.
For further information visit: www.compraspublicas.
gov.ec
Guidelines for presenting a bid
What is relevant when assessing an offer?