With a view to fostering private investment, Ecuador has passed
a Law on Incentives for Public-Private Partnerships and Foreign
Investment containing a series of tax benefits for undertaking
public projects, including exemptions from income tax, foreign
currency remittance tax, foreign trade taxes, and other benefits.
It also guarantees legal stability of the specific, sectoral rules
declared essential in the pertinent agreements or permits for
operating in strategic sectors or provision of public services.
Additionally, it has issued General Regulations for Application
of the Law on Incentives for Public-Private Partnerships and
Foreign Investments, which introduces essential elements regarding
public-private partnerships (PPPs), rules on their structuring,
specific features for private initiatives, systems or mechanisms
for compensation in the event of early termination, deferred
payments, financing guarantees, etc.
