Discusses the legal requirements for selling to the host government, including whether the government has agreed to abide by the WTO Government Procurement Agreement or is a party to a government procurement chapter in a U.S. FTA. Specifies areas where there are opportunities.

Ecuador is not a signatory to the WTO Agreement on Government Procurement. Ecuador’s 2008 Organic Law of the National System of Public Procurement regulates most areas of public contracting, except for contracts for exploration and exploitation of hydrocarbon resources, mining, and purchases of strategic goods necessary for national defense. However, non-strategic defense contracting/purchases are subject to the 2008 Public Contracting Law. The law also establishes a system of “Catalog Purchases” and an Inverse Bid System through which any contractor can lower its offer to provide a specific product to a public institution.
 
The National Public Procurement Service (SERCOP) (http://portal.compraspublicas.gob.ec/sercop/) is the entity charged with supervision of public contracting processes, though every process is independently managed by the contracting institution with its own budget and referral terms.
Bidding for government contracts can be cumbersome, and competitors from other countries do not operate under the restrictions of the U.S. Foreign Corrupt Practices Act. There is no formal discrimination against U.S. suppliers, but the Public Contracting Law establishes the criteria for minimum participation by local suppliers.
 
To sell to the government, suppliers must be registered in the Unique Registry for Suppliers (RUP). This electronic procedure is mandatory and is the only means to participate in the public contracting process. Offers must be in Spanish, using the format specified by the inviting agency, and delivered to the contracting agency as called for in the “pliegos” (specification sheets).
 
For a company (even an Ecuadorian branch of a foreign company) to qualify as a State supplier or competent bidder, it must submit a list of shareholders, stakeholders, and affiliates. If any of the shareholders, stakeholders, or affiliates is a corporate entity domiciled in a “tax haven,” the bidder or supplier is disqualified from the bidding process. Branches must present a list of their headquarters’ shareholders.
 
All information on public procurement in Ecuador is posted at the Sercop website: (http://portal.compraspublicas.gob.ec/sercop/).
 
Guarantees for the contracts are five percent of the total amount. Contracts are signed by the contracting public institution after the revision and award, and do not require further approval by any other authority. Specific clauses involving arbitration in any contract must be duly authorized by the Attorney General.
 
In 2015, the government passed a Public Private Partnership law.  This law provides certain tax incentives for foreign and domestic firms that invest in public-private partnership projects.  It also created an interagency committee that will approve proposed private investment projects in certain strategic sectors.
 
The U.S. Embassy encourages U.S. companies interested in government contracts, or in business activities requiring government licensing or approvals, to consult with us early in the process.

U.S. Commercial Service Liaison Offices at the Multilateral Development Banks (Inter-American Development Bank, World Bank)

The Commercial Service maintains Commercial Liaison Offices in each of the main Multilateral Development Banks, including the Inter-American Development Bank and the World Bank. These institutions lend billions of dollars in developing countries on projects aimed at accelerating economic growth and social development by reducing poverty and inequality, improving health and education, and advancing infrastructure development. The Commercial Liaison Offices help American businesses learn how to get involved in bank-funded projects, and advocate on behalf of American bidders. Learn more by contacting the Commercial Liaison Offices to the Inter-American Development Bank (http://export.gov/idb) and the World Bank (http://export.gov/worldbank).
 
Web Resources
Commercial Liaison Office to the Inter-American Development Bank: http://export.gov/idb
Commercial Liaison Office to the World Bank: http://export.gov/worldbank

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.