Mar 13 • 15:00 UTC 🇪🇨 Ecuador El Universo (ES)

Extension of concession contracts 'attacks the delegation agreement of roads and the transparency of public management,' says MIT lawyer about decision of the Prefecture

The Guayas Prefecture's decision to extend road concession contracts for an additional 30 years has raised concerns about transparency and adherence to delegation agreements, according to a lawyer from the Ministry of Infrastructure and Transportation.

The Ministry of Infrastructure and Transportation (MIT) is currently evaluating its response to the Guayas Prefecture's recent decision to extend the concession contracts of roadways managed by Conorte S.A. and Concegua S.A. for another 30 years. This decision was made in March 2025, extending the original contracts that were set to expire in July of the same year. The justification for this extension was based on a financial mechanism known as Restablecimiento del Equilibrio Económico-Financiero 7 (REEF), which provides economic compensation to the concession companies to reconcile discrepancies between user fees and actual roadway costs.

As part of the REEF 7 arrangement, Conorte has reportedly received $323 million from the Prefecture, while Concegua has received $193 million, cumulatively amounting to $516 million. This financial decision has been met with scrutiny, particularly from legal experts like Carlos Cruz, the coordinating lawyer for the MIT. Cruz argues that the contract extensions are detrimental to both the integrity of the delegation agreement governing the road management and the overall transparency of public governance.

Cruz's concerns echo a broader context of accountability in public contracting, emphasizing the need for transparent negotiations and adherence to fair management practices in public infrastructure projects. The situation highlights ongoing tensions between governmental management practices and the expectations of financial transparency and accountability to the public, raising questions about the future of public-private partnerships in Ecuador’s infrastructure sector.

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