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Latin America Investment News on Viva Tropical

Ecuador Spends Big: $47 Billion in Public Investments

Article Summary:

Ecuador’s government is planning public-sector investments worth about $47 billion from 2013 through 2017, the country’s Planning Secretary Pabel Munoz has announced.

Photo Credit: COHA

Original Article Text From Wall Street Journal:

Ecuador–Ecuador’s government is planning public-sector investments worth about $47 billion from 2013 through 2017, the country’s Planning Secretary Pabel Munoz said Monday.

Mr. Munoz said at a press conference the resources for the forecasted investment will come from taxes, oil revenues and external financing, but didn’t give further details.

Thirty-five percent of the planned investment will go to strategic sectors, including oil, electricity, transport and communications, among others.

President Rafael Correa’s administration has said the investments will put emphasis on quality and equality.

Among others, the government plans to build a $2 billion petrochemical plant linked to the Refineria del Pacifico. The government expects to attract interest of local investors for the plant.

The $12 billion Refineria del Pacifico is a joint project between Venezuela and Ecuador.

China National Petroleum Corp. (CNPC.YY), China’s largest oil and gas-company, expects to firm up a draft pact by end-2013 to join the project.

According to the official plans, CNPC, PdVSA and Petroecuador will provide 30% of the funds needed to build the refinery and the rest will be financed by a group of Chinese banks headed by the Industrial & Commercial Bank of China Ltd. (1398.HK).

So far this year, according to Mr. Munoz, the government has invested about 52% of the $7.2 billion planned for 2013.

According to official data, public investments totaled $25.6 billion from 2007 to 2012, including some $7 billion in the health sector.

Mr. Correa, who took office in early 2007, was reelected on Feb. 17 for a four-year term.

Link to Original Article:

From Wall Street journal

  • Robert in Canada

    New oil refinery, new petro-chemical plant, more oil tankers, and new power lines and roads slashing their way thru pristine wilderness.

    These are all wise long term investments by the gov’t of Ecuador that will benefit everyone in Ecuador for many decades.

    But why aren’t North American environmentalists up in arms, blocking roads, protesting, filing law-suits, shackling themselves to trees, and marching on gov’t offices in Quito?

    The answer is they approve of such projects as long as it’s a far left wing anti-American government doing them.

Latin America Investment News on Viva Tropical