The numbers reflect a major investment of public funds
and the execution of important projects in recent years, but it is
time for private investment to take the baton.
In Ecuador, in the last years Public Investment has been the
axis engine of the economy. However, the current economic situation
has forced the authorities to shift in relation to the policy of
investment required to maintain the same level of execution of
works. Now, it is the private sector that should seize the opening
that the government is offering to clear lights and become what it
was always meant to be: the real engine of the national
What has happened in Ecuador in the matter of investment and
Public Procurement in recent years? Beginning in 2008 with the
issuance of the Organic Law of the National Public Procurement
System -LOSNCP- and the creation of the National Institute of
Public Procurement (INCOP) today SERCOP, marking a before and after
in the public purchases of Ecuador. The applicable system was
modernized through technological tools; Procurement legislation was
unified in a single regulatory body; the National Register of
Providers -RUP- was created eliminating thousands of records
independently managed by agencies and contracting authorities; and,
perhaps the most significant changes were the standardization of
goods and services and the use of the public procurement portal as
a tool for recruitment.
From these changes, public investment in Government Procurement
has had a major impact on the Ecuadorian economy; in 2013 it was
approximated to $ 11,000 million, representing 11.5% of GDP and
33.5% of National Budget. However, by 2014 the Public Procurement
was 8.1% of GDP and 23.9% of National Budget, showing a
contraction. It is noted that the crisis began to hit, probably as
a result of the oil price, which was exacerbated by the virtual
absence of tax savings.
All information on public procurement in Ecuador is posted and
at the hand of all interested people through the website
www.compraspublicas.com, which means opportunities for those who
properly use these numbers, inside and outside the country. One of
the most valuable tools of information for the employer and
provider of the State is the Annual Procurement Plan (PAC) that
every contracting entity is obliged to publish at the beginning of
each year on its institutional website and public shopping
The conjunction changed: It's time for private
It cannot be denied that the local and global economic data show
times of crisis; however, that is when the real enterprising
/entrepreneurs, local and foreign highlight to seize the
opportunities. Thus, there are tools to do so:
By Executive Decree the government issued the Regulations of the
Board of Public-Private Partnership in which the rules are set for
a "private developer" to generate projects in strategic
sectors and public services. With the issuance of this Regulation,
private companies can invest in the areas of strategic sectors,
providing electricity utilities, roads, port, airport and railway
facilities, in such new projects and those existing. The Annual
Investment Program 2015 consisting in the General State Budget
provides a total of $ 8.116 million allocated to profitable and
social projects in these sectors.
Are there other tools to ensure the active participation of the
private sector in the economy and Procurement of Ecuador? Yes,
there are. The possibility that proposals for funding provided by
the suppliers themselves or by investors to cover all projects are
presented; - The delegation to the participation in strategic
sectors and public services to joint ventures and in an exceptional
way to private initiative; - The associative capacity, according to
which public enterprises can be any type of partnership, strategic
alliances, mixed economy societies with public and private sectors
at national or international level.
Are not these real opportunities for the private sector to take
the leadership in relation to investment in Government Procurement
and in general pass to the driver's seat in the vehicle of the
national economy? It only requires the interest from entrepreneurs,
including foreigners, who obviously, in order to watch over their
business and investments should seek legal advice necessary to
participate in these projects.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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