On April 11, 2025, Executive Decree No. 595 (the “Decree”) was issued, amending the Regulations to the Law on Public Procurement (“RGLOSNCP”). The Decree was published in Official Gazette Supplement No. 19 on April 14, 2025.
According to Article 3 of the Law on Public Procurement (“LOSNCP”), when public contracts are financed by multilateral credit organizations of which Ecuador is a member, international cooperation organizations, or through government-to-government financing, these contracts will primarily be governed by the terms of the respective contracts and financing agreements. The LOSNCP will apply secondarily.
Article 2 of the RGLOSNCP provides that the financing of these contracts may be either total or partial. The Decree amends this article to clarify that “partial financing” occurs when the foreign financing entity covers at least 51% of the total contract value, and the funds are directly allocated to the contract.
Additionally, the Decree requires the National Public Procurement Service to submit, by May 8, 2025, to the General Comptroller’s Office, all procedures carried out with the participation of an intermediary under Article 3 of the LOSNCP, for oversight purposes.
Hugo García Larriva, Socio en CorralRosales
hgarcia@corralrosales.com
+593 2 2567676
