X Meeting of Binational Committee of the Ecuador-Spain Debt Swap Program

(Quito, March 19, 2009) In the framework of the Bilateral Agreement for Conversion of External Debt of Ecuador with the Kingdom of Spain, the X Meeting of the Ecuador-Spain Debt Conversion Binational Committee will be held in the Ecuadorian Foreign Ministry on Thursday March 19, 2009

The meeting will be attended by representatives of both countries: on the Spanish side, the Ministry of Economy and Finance and the Trade Office of its embassy in Ecuador, and on the Ecuadorian side the Ministries of Foreign Affairs and Finance, assisted by the Technical Committee and the Andean Development Corporation, CAF, as Technical Secretariat.

The funds in the Swap Program totaling US$50 million come from cancellation by Spain of Ecuador’s external debt. As a result, instead of being used for debt payment, the funds are invested in economic and social development projects in Ecuador.

Seven new development projects will be presented at the meeting for a total of US$30 million. These projects will improve the living conditions of vulnerable populations along Ecuador’s northern border, specifically in the provinces of Imbabura, Carchi, Esmeraldas, Sucumbíos and Orellana, through the Plan Ecuador Technical Secretariat. The provinces of Guayas, Manabí, Chimborazo, Azuay, Loja and Morona Santiago will also benefit through the National Migrants Secretariat which will submit three projects as part of the National Welcome Home Ecuadorians Program, and lastly the Ministry of the Coast will operate in Manabí, Guayas, Los Ríos, Santa Helena and El Oro provinces.

7 Projects for the Second Stage:

• ”Program of Integrated Solutions for Water and Sanitation.” (35 technical solutions in northern border cantons), executed by the Ministry of Urban Development and Housing.
• “Millennium Education Units.” (Construction of Millennium Schools (UEMs), and improvement of 36 UEM satellite schools on the northern border, executed by the Ministry of Education.
• “Strengthening of social protection in health for the integrated development of the population of the northern border provinces,” executed by the Ministry of Health.
• “National Homes Network for migrants and their families in Ecuador”. (Migrant homes in eight provinces with highest migration rate), executed by the National Migrants Secretariat (SENAMI).
• “Escuelas Cercanas”. Technological equipping of 20 schools in El Cañar province and 130 in the marginal barrios in south Quito, co-executed by the National Migrants Secretariat and the Ministry of Education.
• “Support for business initiatives, REDIEM”. Network of offices to support business initiatives, executed by the National Migrants Secretariat.
• “Design and construction of safe multifunctional schools.” Construction and equipping of 60 shelter modules in 30 schools and risk management training for teachers and community, executed by the National Services Department (DINSE) of the Ministry of Education.

With approval of these seven projects, the Debt Swap Program starts its second stage. In the First Stage (2006-2008), 22 education projects were approved for a total of US$20 million with the following results:

Around the country 2,132 schools benefited from improvements in infrastructure, equipment and teacher training. Computer laboratories in 276 schools were equipped and fitted with computers, and infrastructure in 701 establishments was built or improved. Other infrastructure completed included nine homes for teachers in single-teacher schools, seven community canteens and bathrooms in 74 schools. Additionally, 330 schools were provided with furniture and teaching equipment, and 503 schools have been equipped with books and a range of teaching materials.