The Inter-American Development Bank (IDB) approved a $22.95 million loan to help Ecuador modernize its public procurement system and make it more transparent and efficient, the IDB said. The money will strengthen the National Public Procurement Service (SERCOP) and overhaul how the country buys goods and services, with the goal of getting better value for public money and cutting waste.
The project tackles procurement from several angles. It will improve how SERCOP is organized and governed, boost the agency’s ability to manage purchases based on efficiency and transparency, sharpen oversight and coordination among control agencies, and roll out digital tools including a new integrated technology platform with stronger cybersecurity. The idea is to make the whole system faster, clearer, and harder to game.
More than 13,500 state suppliers stand to benefit, including micro, small, and medium-sized businesses, social economy organizations, and entrepreneurs who often struggle with red tape. They’ll get a procurement system that’s easier to navigate and more predictable. Over 8,600 government agencies that buy goods and services will also get support managing their purchases more smoothly. Control agencies will be able to share and use data better, making it easier to spot problems early.
The loan ties into a recent IDB operation backing Ecuador’s Office of the Comptroller General, a key oversight body. Together, the two projects form part of a broader push to clean up and tighten public spending across the country. The $22.95 million comes with a 25-year repayment period, a 5.5-year grace period, and an interest rate based on SOFR plus a margin.
Ecuador’s procurement system has long been criticized for delays, opacity, and inefficiency. By targeting the technical backbone and governance structures at the same time, the program aims to shift the system from one that frustrates users to one that actually works for businesses, government agencies, and taxpayers.
