CONNECTING links
By encouraging greater private-sector investment in the transport sector, MTOP seeks to improve the country’s overall connectivity and boost economic development.
“The policy of open skies, implemented by President Lenín Moreno, sends a clear message to the world that we are providing legal security for investments, specifically for commercial aviation.”
What economic impact can be expected by improving international and domestic connectivity in Ecuador?
The effect of increasing air connectivity can be seen directly in the domestic and international tourism sector and in the foreign trade indexes. These are activities that generate important production chains and are central to reducing the country’s economic dependence on traditional products like oil.
What factors have contributed to making Ecuador a more attractive market for international airlines?
The policy of open skies, implemented by President Lenín Moreno, sends a clear message to the world that we are providing legal security for investments, specifically for commercial aviation, and demonstrating that we are a country with many things to offer. Through this initiative, we are turning ourselves into strategic partners for airlines that want to obtain a sustainable operation in the country. MTOP is the director of the air policy in the country working to offer all airline operators the possibility of participating in the market. As for new operations for 2020, we plan to include two new international airlines. We have also been able to add seven new airlines to operate international flights, including Spirit, Gol, Laser, AirFrance, Plus Ultra, Intejet, and AirCanada, as well as others already operating in the country and have increased their flights, such as Latam and Jetblue.
What role can the private sector play in improving road infrastructure in the country?
Once all the necessary investments are carried out to prepare the road infrastructure, the state will require a private manager to efficiently execute the operation and maintenance of the infrastructure accordingly to its cost-risk through a public-private partnership and a concession. Under this scheme, the private sector plays an important role, which is why MTOP has worked on a portfolio of possible projects that are attractive for private companies and will allow the state to guarantee the use of the country’s roads. MTOP is seeking to ensure connectivity through the implementation of models of administration in the roads and giving priority to investments in road infrastructure. We were able to enlarge the state road network from 9,800km to 10,160km. Our work now is to give priority to building and providing different road infrastructure based on needs as they change throughout time. Though there is excellent connectivity, we are still investing in expansion projects for those areas that still require further infrastructure. As an example, one of the most important links in the country is the Quito-Guayaquil road, which has two lanes and full traffic congestion at certain times. Another area we are working on is the expansion of the Guayaquil-Machala road. These are being developed under a concession model that seeks public-private participation in projects requiring large investments. The participation of the private sector is important because it allows us to take advantage of the private sector's experience and finance capacity to provide services traditionally provided by the public sector. Additionally, we are investing in reducing the number of accidents via financing from the Development Bank of Latin America (CAF) and a USD215-million investment for maintenance. This project envisions a year of mandatory works and maintenance at a fixed cost for a total of five years to execute the projects in seven different areas that collectively total 1,200km.
What level of public investment in infrastructure can be achieved in the next years?
MTOP seeks the participation of the private sector to reduce pressure on the budget and allow private investment, while also guaranteeing a safe service for users and contributing to the social and economic development of the country. Through the implementation of this management model, we can introduce technology and innovation to improve the quality of the public services through an operative efficiency.