Ecuador Logistics Sector Proposes Tax-for-Works Infrastructure Bill to Counter El Niño Risks

Overview

The Asociación Logística del Ecuador (Asolog) presented a draft bill titled Obras por Impuestos (OXI) on November 10, 2026, during the Logistics Investment Forum (LIF 2026) in Quito. The proposal aims to leverage private sector investment to fund and execute critical public infrastructure projects to mitigate risks associated with the El Niño phenomenon.

According to data from Ecuador's risk management authority (Riesgos), 3,100 kilometers of the State Road Network (Red Vial Estatal) are classified as high risk or highly susceptible to El Niño. This includes nearly 1,870 kilometers exposed to flooding in the Coast region and more than 1,240 kilometers prone to landslides in the Sierra region.

Confirmed details

Carlos Luis Burgos, president of Asolog, stated that more than 95% of Ecuador's cargo relies on land transport. Disruptions along key transport corridors threaten trade and supply chains, prompting the trade group's legislative initiative.

Under the proposed tax-for-works mechanism presented in Quito, private companies would directly finance and construct prioritized public infrastructure works, compensating their investments via tax certificates.

What to watch

• Legislative review of the Obras por Impuestos draft bill presented to national lawmakers in Quito.
• Official evaluations or responses regarding road infrastructure interventions along susceptible corridors in the Coast and Sierra regions.
• Further reporting from logistical and risk management authorities on freight transport continuity during upcoming El Niño impacts.

Sources: primicias.ec.

Image: AI-generated editorial illustration; not a documentary depiction of the events reported.