Ecuador to Strengthen Public Spending Oversight with IDB Support

WASHINGTON – The Inter-American Development Bank (IDB) approved a Specific Investment Loan (ESP) of $28.1 million to improve the effectiveness of public spending oversight in Ecuador through institutional, operational, and technological strengthening of the Office of the Comptroller General of the State (CGE).

The operation will finance the Program to Strengthen the Office of the Comptroller General of the State to Improve Oversight Capabilities in Ecuador. The plan includes modernizing institutional management, improving internal and external audit processes, updating regulations and methodologies, and digitally transforming the CGE.

The program envisions investments in technological infrastructure, human talent training, and the development of interoperable systems and digital tools to enhance the management and oversight of public resources.

It will support Ecuador in reinforcing the preventive nature of public oversight, promoting more efficient and transparent spending management, especially benefiting the most vulnerable populations. In this regard, emphasis is placed on coordination with the National Public Procurement Subsystem (SNCP), which will improve collaboration between the CGE, SERCOP, and other entities in the oversight ecosystem, ensuring traceability and interoperability of public procurement information.

The initiative will strengthen the CGE and more than 3,200 public sector entities under its oversight, improving the effectiveness of internal control, auditing, and adjudication processes.

These actions will contribute to consolidating a more efficient, coordinated, and transparent oversight system, enabling better public spending management.

The loan has a 25-year repayment term, a 5.5-year grace period, and an interest rate based on SOFR.