Ecuador has announced a series of infrastructure projects for 2026, focusing on electricity, water access in rural areas, environmental conservation, and water planning. The initiatives are supported by over USD 75.5 million in non-reimbursable funds from the Development Bank of Latin America and the Caribbean (CAF), managed by the national government as part of its public investment policy.
Inés María Manzano, Minister of Environment and Energy, said this funding demonstrates international confidence in Ecuador’s technical and management capabilities. “The support from CAF accompanies a sovereign decision by Ecuador to invest in the country’s strategic sectors. The operability of CELEC will be strengthened. The FOGAPRYD II project is also underway, as well as studies for the Milagro River and economic resources for debt-for-nature swaps,” she stated.
Last week, Minister Manzano signed an agreement for USD 500,000 to support the “Comprehensive Support to CELEC for Expansion of the Electric System” program. This aims to strengthen both technical and institutional capacity within Ecuador’s electric sector and improve planning to ensure energy security.
FOGAPRYD II is another major initiative with USD 75 million allocated toward expanding equitable access to potable water and sanitation in rural and peri-urban communities. The project includes 83 water projects and more than 20 irrigation and drainage initiatives, which are expected to benefit over 130,376 people.
Additionally, CAF will provide USD 150,000 for gathering information focused on designing a new conservation-based financial mechanism aimed at protecting Ecuador’s biodiversity and fragile ecosystems.
CAF will also assist Empresa Pública de Agua with updated feasibility studies for a flood control project in Milagro canton in Guayas province. These efforts form part of government plans that use non-debt-generating resources essential for meeting targets outlined in Ecuador’s National Development Plan.
