ECUADOR: Noboa begins new term with bold energy and security plans
Ecuador’s President Daniel Noboa kicked off his new four-year term on 24 May with ambitious plans to step up the battle on organised crime, push energy investments, and streamline the state without imposing drastic austerity measures.
Most legislators from the left-wing opposition Revolución Ciudadana (RC) didn’t attend the inauguration ceremony as they don’t recognise President Noboa’s victory, even though claims of fraud during the 13 April second round were rejected by the country’s electoral authorities and by international observers.
Nevertheless, a rather fluid situation in the constellation of congressional alliances bodes for a challenging but overall more constructive scenario than Noboa had during his first 18 months in office. On the one hand his newly formed alliance with the indigenous party Pachakutik came under early pressure when the umbrella indigenous movement Confederación de Nacionalidades Indígenas del Ecuador (Conaie) blasted his proposed security bill as a serious threat to human rights and civil liberties [WR-25-20]. On the other hand, a dissident faction within RC has formed in congress, opening up new opportunities for constructive dialogue. The group of 18 legislators called the Bancada de la Gente has signalled it is open to working with Noboa on the same security bill that the indigenous movement has concerns over.
“We don’t oppose it but we have some observations,” Raúl Chávez, a member of the bloc, said in reference to the security bill on 27 May. “We may not agree on everything; we don’t need to be best friends to move forward as a country,” he said on the broader question of Noboa’s legislative support in congress.
The security bill is the centrepiece of Noboa’s renewed effort to win the war against organised crime. Among other things it would allow the police and armed forces to use force more directly, broaden the president’s power to pardon security personnel even while cases are still under investigation, and reform the tax regime to go after the financing of criminal groups and combat money laundering. Separately, Noboa has also announced legislation which would give companies tax incentives in exchange for donations to provide the security forces with cutting-edge technology and equipment.
In a further attempt to undercut gangs, Noboa is increasingly aiming to go after their financial strength. “Our police, our armed forces can face them in the streets, but if they have unlimited sources of income that struggle will continue,” Noboa told local journalism platform Visionarias on 24 May. “We have to take away their money, their source of income,” he said. The government’s plans include efforts to crack down on illegal gold mining by opening a central mining registry in the coming months, as well as tightening border controls.
Energy
Noboa said in his inauguration speech that the worst of Ecuador’s recurrent power outages are over, saying that there is more water in reservoirs and additional capacity has been brought online through new projects and proper maintenance of hydroelectric plants. He said that his government will submit a nuclear energy bill to diversify the electricity matrix, which is heavily reliant on hydropower.
The government wants to add 1,000MW in wind and solar capacity to the national grid in the next two to three years. Concrete progress is being made on this front. Final studies are completed and interested investors have been identified for a project to install floating solar panels on the Mazar reservoir in Cañar province that would have a capacity of 160MW. Equally, feasibility studies for the Cardenillo hydroelectric project on the Paute river, which has a projected capacity of 600MW, are in their final stages.
Noboa told Visionarias that the government intends to reach its target of producing an additional 100,000 barrels of oil per day within the next two years. The focus would be to boost investments from state oil company Petroecuador in the Sacha oilfield but also to attract private capital to fields in the same oil-rich Orellana province. Previous efforts by the Noboa administration to boost private sector involvement in Sacha have run into stiff opposition from the indigenous movement. Noboa also held out the prospect of potential foreign investment in the Amistad gas field in the Gulf of Guayaquil, particularly from the sovereign wealth fund of the United Arab Emirates, which Noboa visited in late April.
Cabinet changes
President Noboa made only two cabinet changes as he swore in his ministerial team following the inauguration ceremony. Juan Bernardo Sánchez was appointed as health minister, replacing Edgar Lama, and María Luisa Cruz was named as environment minister, replacing María Cristina Recalde. Lama and Recalde had both been in their roles since February.