Ecuador - Resilient Infrastructure Project as Phase 1 of the Multi-Phase Programmatic Approach

Overview & Synopsis

Ecuador Resilient Infrastructure Project for Ecuador, the development objectives are to improve the institutional performance of Banco de Desarrollo del Ecuador B.P. (BDE BP) and expand subnational access to long-term financing of resilient infrastructure investments. Component 1: Infrastructure Financing supports an initial portfolio of resilient investments through BDE BP’s on-lending to eligible subnational governments, public enterprises, and, for housing, qualified private developers across priority sectors such as energy, transport and mobility, urban development, and disaster risk management, applying strengthened appraisal, eligibility, supervision, and environmental and social standards. Sub-components: Sub-component 1.1 finances resilient infrastructure for subnational governments and public enterprises, covering civil works, equipment, systems, and technical services for renewable energy, energy efficiency, electricity transmission and distribution, rural and provincial roads, public and non-motorized transport, port and river transport, and urban and disaster risk management including drainage, flood protection, slope stabilization, public spaces, neighborhood upgrading, nature-based solutions, early warning systems, and resilient tourism and cultural infrastructure; Sub-component 1.2 implements an affordable housing pilot by providing long-term financing to eligible real estate developers to expand formal social interest and priority interest housing aligned with national policy, while testing BDE BP’s operational role and generating evidence for future scaling. Component 2: Sub-project Preparation finances pre-investment activities, including feasibility studies, engineering designs, environmental and social instruments, investment planning, and other technical analyses to strengthen the pipeline and implementation readiness of resilient subprojects in priority sectors. Component 3: Institutional Capacity Strengthening of BDE BP and Subnational Governments enhances the institutional, financial, and operational foundations for resilient infrastructure finance. Sub-components: financial strengthening and financial risk management to improve risk-based pricing, portfolio and exposure monitoring, arrears management, capital planning, liquidity and funding strategies, and the design of new financial products and risk-mitigation mechanisms while operationalizing the Green Bond Framework; operational modernization and project management to upgrade project appraisal, approval, supervision, procurement, financial management, digital portfolio systems, corporate governance, staff training, and the integration of climate and disaster resilience screening and technical guidance; institutional strengthening at the subnational level to deliver diagnostics, institutional improvement plans, and tailored technical assistance for project preparation, fiduciary and environmental and social compliance, implementation capacity, infrastructure asset management, and operation and maintenance, with lessons to inform performance-oriented approaches in future phases. Component 4: Project Supervision and Monitoring supports project management, coordination, procurement, financial management, monitoring and evaluation, stakeholder engagement, grievance redress, and compliance with World Bank requirements, including portfolio monitoring, data consolidation, and periodic reporting.