• Constitutional Principles
Promote a new trade and investment regime between States on the basis of justice, solidarity, complementarily (…) Deny the possibility that dispute resolution with foreign companies becomes a conflict between Governments.
• Production, Commerce and Investments Act
Establishes a legal regime which all foreign and domestic commerce agents must abide.

same rights and obligations as national investors.
Transfers.
Investors have the right to transfer overseas the complete or partial amounts gained through their commercial activities, if and when all fiscal obligations are met.
Rule of Law.
Possibility of subscribing investment contracts which can lead to international arbitration.
Taxation Stability.
Long term applicable taxes when a new investment is presented.
Rule of Law.
Possibility of subscribing investment contracts which can lead to international arbitration.
No Seizures.
Investments shall no be seized, expropriated or nationalized, directly or indirectly, with the exception of those cases which respond to public interest and only when the required legal procedures have been taken into account (…) non discrimination as well as fair and equal treatment must be observed.
Financing.
Liberty to access the national financial system and stock market in order to obtain the necessary resources for the short, medium and long term development of investment projects.

1.
Foreign investors and investments will benefit from protection under the rule of law.
2.
They shall receive the same legal treatment as
Ecuadorian investors within the national territory.
3. Investors rights are recognized.
4. Investment Contracts can be signed.

INVESTORS
RIGHTS
• To produce and commercialize all licit goods and services.
• To access to all administrative procedures in order to control speculative behaviors.
• To import and export goods
• To transfer overseas all dividends obtained periodically.

Arbitral Clauses may be enacted in order to resolve controversies between the State and the private investor.
MECHANISM:
ADMIN.
VENUE
• AMICABLE
SOLUTION
• 60 DAYS
MEDIATION
•
• 3
MONTHS
ARBITRATION
•
RULE OF
LAW
• FINAL
SOLUTION IS
INSTATED AND
ENFORCED
• TAXATION
MATTERS ARE
NOT ADMISIBLE

APPLICATION OF INCENTIVES
(GENERAL, BY SECTOR & SPECIFIC)
GENERAL
• Gradual corporate income tax reduction
(from 25 to 22%)
• New enterprises receive a 5 year tax cut.
• No tax applicable for foreign money transfers.
• Expenditure tax cuts on all investments for productivity, innovation and eco - efficiency.
• ZEDES:
• Additional 5% tax reduction
• Exemption of VAT for imported goods
• Exemption of ISD payment of credits and for purchase of raw materials, production goods and services.
• Fiscal credit for VAT paid on purchase of raw materials, production goods and services

Sectors d. Production of fresh, freezed or industrialized goods. e. Forest industry, Agro-forest chain & its products f. Metal mechanics; d. Petrochemicals; e. Pharmaceutical; f. Tourism; g. Renewable Energies; h. Logistical Services; i. Biotechnologies and software; j. Defined areas for import substitution.

SPECIFIC
In addition to “general” and “sector” incentives: all investments undergone in under developed areas shall receive a 100% tax deduction on all new workers for a 5 year time frame.

Geographical areas within the national territory which take into consideration infrastructure conditions, the environment and electricity, water and telecommunications access.
Shall be designated for:
1.- Technological transfer and innovation;
2- Diversify the industrial production frame.
3.- Logistical services.

• Source for public, private and mixed capital investments.
• Amount of the investment in accordance to the projects undertaken.
• Projects aligned with the national strategy for productive transformation.
• Impact of technological transfer on local and regional production. Increments on add value exports in prioritized areas.

THE MAJOR TRANSFORMATIONS IN
INVESTMENT REQUIRED FOR ECUADOR
The main objective of the Government of
Economist Rafael Correa is to build infrastructure works to attend the demands of 14 million Ecuadorians, to exploit strategic areas in the country to generate resources that will benefit the entire population, as well as the acquisition of resources that will allow developing these and other works.
To achieve this objective we have
The National Plan for Good Living which seeks the development of
Ecuador, through effective planning processes, with particular emphasis on execution and integral management of strategic sectors.

 Ecuador offers a stable regulatory framework.
 The Ecuadorian
Government has as priority in public and private, national and foreign sectors.
The new legal framework includes:
National Assembly, Constitution, Public Companies
Law, Public Procurement Law, Production Code,
Planning and Public Finance Code, Mining Law,
New Hydrocarbon Law


Objectives: ACHIEVE self sufficiency in electric generation, by-Products refining, access to information technology, and management of water resources.
TO BE PRODUCTIVE, with quality in electric services and telecommunications; extraction of hydrocarbons and minerals, and water resource development.
TO BE INCLUSIVE, in the provision of public services accessible to all people.

Goals: Develop infrastructure, Employment generation, Technology transfer,
Consolidating investments in strategic sectors, improving systemic competitiveness


TONGLING Acquired two projects in 652 miners
Cooper MM USD to the
Canadian company ECSA.
Estimated Investment $2,
000 million USD to 2014.
PETRO ORIENTAL, operates blocks 14 and
17,has invested since
2006 until 2009 - 200MM
USD.
This company produces 12.812 barrel per day .

ANDES PETROLEUM, operates Tarapoa field , has invested since 2006 until 2009 – 392 MM USD.
This company produces
36.025 barrel per day .
SINOPEC (Lease
Petroleum Rigs); and others.

Coca Codo Sinclair
Hydroelectri c.
China Eximbank Financing of USD 1.682 million.
Sinohydro built and equipped by 2000 millio n USD.
Construction and equipment of the
Sopladora
Hydroelectric for 700 million USD.
Construction and equipment of the
Sopladora
Hydroelectric for 700 million USD.

Chinese construction companies Gezhouba and Sinohydro will build two of the largest infrastructure projects in the history of
Ecuador: Sopladora and Coca Codo
Sinclair . The budgets for the construction of hydroelectric plants are USD 700 million and USD1.700 million for
Sopladora and Coca Codo Sinclair, respectively.
The implementation of these projects will generate savings of $ 3 million per day approximately, supplying the thermal energy.
They will cover 37% of the power and 35% of the energy demand in Ecuador




Opportunity for Chinese Companies to develop and execute projects without the requirement to participate in a long bid process, when the offerings include financing on favorable terms.
Growth and profitability for Chinese
Companies.
Chinese Banks need to allocate their economical resources in order to increase their profits and diversify your portfolio.
 (CDB, EXIMBANK, BANK OF CHINA, ICBC) support the financing for the Ecuadorian strategic projects.
 SINOSURE support.












Pacific Refinery
Airport and Port of Manta
Cement Factory
Cocoa Processing Plant
Mine silicon, polysilicon
Solar panels factory, microchips, ceramics.
Glass plant
Milk Processing Plant
Manufactures of metal bridges
Auto assembly plant
Factory of TV's and decoders







Opportunity for Chinese companies to build infrastructure projects overseas.
Priority projects that allow us to decrease the generation cost.
Significant economic saving to the State by reducing the fuel imports diesel ) and export the fuel refinery .
Change on the energetic matrix through the use of clean technology reducing CO2 emissions.
Minimum risk of electric black out.
Energetic sovereignty.






Risk Reduction caused by drought and floods.
To protect the life of the population.
More hectares available for irrigation to be used in the agriculture sector
(alimentary Sovereignty and exportation)
Savings to the State and population through disaster prevention.
Opportunity for Chinese companies to build infrastructure projects overseas.












High potential for prospecting
(Unexplored country)
Current concessions represent only
4.31% of the country surface.
96.83% are in exploration phase and
3.17% in exploitation
High Probabilities of success
KINROSS : Most important world wide gold discovery in the last 10 years
Adequate business conditions
Negotiation contracts underway
(KINROSS, ECSA, IMC and IAMGOLD)
Legal framework
New incentives
Guarantees of investment through contracts
Adequate infrastructure and geographic location








Only high conversion refinery of crude oil in South America’s Pacific
Coast.
Strategic location for receiving raw material and world wide distribution.
Ecuadorian Oil by-products captive market.
Highly unsatisfied demand of Oil derivatives in the region.
Placement of total excess of electrical generation in National market.
Highly profitable investment sector.
New Oilfields development (South-
East)

CHIMBORAZO NL
ISIMANSHI
AMAZONAS
AMAZONAS 0.75
ISIMANSHI 0.5
CHIMBORAZO NEW
LINE
Millions of tons per year
1
Aditional Needs for 2011
1 million tons for:
1.1.600 Km of concrete roads
2.800.000 houses
3.1 electrical power dam
26
!

Share Holders
Private Partner
Social Security
State entity (EPCE)
Employees
Communities
Shares
51%
22%
17%
5%
5%

Total Overhaul
Flight Coverage:
Location:
Domestic and International
Manta, Manabí Province
The project consists of developing a modern passenger terminal building with an approximate surface area of 4.466m
2 ; with a technical block of 254m 2 construction; a SCI hangar of 3.780m
2 ; and
6.425m
2 for vehicle parking, runway extension to reach 3700 mts., cargo terminal and training centre.
3700m x 46m FUTURE RUNWAY
DIMENSIONS:
REFERENTIAL
AMOUNT:
US$40.000.000,00
EXECUTION TIME: 18 months

The following is required to execute this Mega
Project:
 Significant Passenger and Export-Import cargo to and from Asia.
 Investors under the strategic alliance figure, capable of complying with domestic and international airline requirements.
 Creation of Pilot Training School for Latin
America.
CHARACTERISTICS OF THE STRATEGIC PARTNER
 Ample experience in executing development projects for the aviation sector.
 Extensively trained in operation and marketing of airports.
 Know-how in transfer-airport management (HUB).