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QUITO, Jan 11 (Reuters) – Ecuador’s national assembly late on Wednesday approved a bill proposed by President Daniel Noboa that is meant to increase electricity generation and attract foreign investment to the sector.
Ecuador’s economy has struggled since the coronavirus pandemic and the country was rocked this week by a wave of violence that prompted Noboa to call for war on gangs.
Ecuador has to ration its energy due to a drought caused by the El Niño weather phenomenon, which has affected the production of hydroelectric plants.
The electricity law, which grants tax incentives to companies that generate their own electricity and forgives interest on overdue energy payments, was approved by 131 of the 136 parliamentarians present.
Lawmakers also voted unanimously this week to symbolically support Noboa’s security efforts, which he implemented by executive order.
“The ‘No More Blackouts’ Law, which is an investment and helps generate jobs, was approved with a historic package,” Noboa said in a video posted on social networks. “The participation of citizens and political parties is essential to get out of the darkness and create better days for everyone. “
The Electricity Law also creates an electric power fund to finance innovations in the sector that reduce consumption, with a budget from the national budget and foreign aid, and will produce from renewable sources.
Utilities, which dominate Ecuador’s electric power sector, can now hand over their applications to private providers under certain circumstances. (Reporting by Alexandra Valencia, Writing by Julia Symmes Cobb, Editing by Angus MacSwan)