Diplomacyindia.com

Rebuilding after deadly Ecuador quake to cost at least $3.3 billion

Rebuilding after deadly Ecuador quake to cost at least $3.3 billion
June 02
13:24 2016

Quito, June 2  The cost of reconstruction after the earthquake last April that killed 663 people in Ecuador will total at least $3.344 billion, the government here said, adding that the funds will be raised from international entities, the private sector and the public.

The head of the National Planning and Development Secretariat, Sandra Naranjo, discussed the matter on Wednesday, noting that the estimated reconstruction costs include reconstituting the assets that were lost as well as the value of the goods that were not produced and the services that were not provided as a consequence of the quake.

Also included in the tentative figure are additional expenses that were incurred during the emergency and the recovery phase, such as mobile classrooms and hospitals, among others, EFE news agency reported.

“Adding these three areas … the estimated cost to the country is $3.344 billion. Sixty-seven percent of that cost ($2.253 billion) will be assumed by the public sector and 33 percent ($1.091 billion) will be a private sector expense,” she said.

Naranjo said that the social sector will bear the greater percentage of the reconstruction costs — 41 percent — followed by the production sector (31 percent), the infrastructure sector (26 percent) and other sectors (2 percent), among others.

She said that $1 billion of the $2.253 billion will be financed through the so-called Solidarity Law approved on May 12 by the National Assembly to generate taxes and contributions, as well as by tax incentives in the quake-affected zones to facilitate their reconstruction.

The project includes, among other things, raising the Value Added Tax from 12 percent to 14 percent for one year, a hike that went into effect on Wednesday.

The law also includes the contribution of one day’s pay by workers earning more than $1,000 per month, two days for those earning more than $2,000 and progressively higher contributions for those earning $5,000 or more.

In addition, the law includes a tax of 0.9 percent on the assets of people owning more than $1 million worth of property and a one-time tax of 3 percent on the profits companies made in 2015.

The law also stipulates that the finance ministry must provide an accounting of the tax collections to the assembly every three months, Naranjo said, adding that some $660 million will be made available in credit lines by the World Bank and the Inter-American Development Bank, among other entities, along with $400 million by the International Monetary Fund.

Related Articles

0 Comments

No Comments Yet!

There are no comments at the moment, do you want to add one?

Write a comment

Write a Comment

<

On the Eve of 30th Years of Independence of Republic of Uzbekistan, H.E. Dilshod Akhatov, Ambassador of Uzbekistan to India in conversation with Ameya Sathaye, Editor-in-Chief.

Denmark Ambassador to India Freddy Svane in conversation with Amb Pradeep Kapur & Ameya Sathaye, Editor-in-Chief

Italy india will work closely together for G20 : Italy Envoy to India

Do you know why FINLAND is ranked number ONE in Happiness index, watch this interview with Finland Ambassador to India

Exclusive Interview : H.E. Jasem Ibrahem Al Najem Ambassador of Kuwait to India speaks on India Kuwait bilateral relations

ड्रैगन ने हाथी को क्यों डसा, भारत- चीन रिश्तों की कहानी- रंजीत कुमार के साथ अमेय साठे की विषेष चर्चा ड्रैगन ने हाथी को क्यों डसा, भारत- चीन रिश्तों की कहानी- रंजीत कुमार के साथ अमेय साठे की विषेष चर्चा 0 comment Read Full Article

H.E. Reuben Gauci, Ambassador of Malta to India speaks on India-Malta Bilateral Relations

Portugal supports India in covid crisis : Portugal Ambassador Carlos Pereira Marques speaks with Ameya Sathaye, Editor-in-Chief

Vietnam Ambassador to India, Pham Sanh Chau speaks on Vietnam support to India in tackling covid crisis

Netherlands supports India in covid crisis : Netherlands Ambassador Marten van den Berg speaks with Ameya Sathaye

Envoy Speaks : Gopal Baglay, Indian High Commissioner to Sri Lanka speaks on Bilateral relations, business opportunities, Tourism & people to people to people contacts

Kuwait reciprocates, we stand with India in this hour of crisis : Kuwait Ambassador to India

Canadian High Commissioner, Nadir Patel speaking on support to India in covid crisis

Italian Ambassador to India, Vincenzo de Luca speaking on Italy support to India in covid crisis

H.E. Mr. Reuben Gauci, Malta High Commissioner to India speaks with Ameya Sathaye, Editor-in-Chief of Malta support to India in covid crisis

Danish Ambassador to India Freddy Svane speaking on Denmark aid to India

Video Interview with Vinod Daniel, CEO, India Vision Institute, Board Member, International Council of Museums & Chairman, Ausheritage

DENMARK AMBASSADOR FREDDY SAVNE VISIT TO CORONOVIRUS VACCINE FACILITY AT HYDERABAD, A TRIP ORGANISED BY MINISTRY OF EXTERNAL AFFAIRS, GOVT OF INDIA FOR FOREIGN ENVOYS BASED IN INDIA.

MALTA HIGH COMMISSIONER TO INDIA, H.E. REUBEN GAUCI SHARING HIS IMPRESSION ABOUT HIS VISIT TO HYDERABAD : TRIP ORGANISED BY MINISTRY OF EXTERNAL AFFAIRS, GOVERNMENT OF INDIA FOR ENVOYS BASED IN INDIA TO UPDATE ON CORONAVIRUS VACCINE

H.E. Mr. Dinesh Bhatia, Ambassador of India to Argentina in conversation with Ameya Sathaye, Editor-in-Chief

Pictures of Formal Launch of Website Diplomacyindia.com

Exclusive Interview with Prime Minister of Guyana, H.E. Mr. Moses Veerasammy Nagamootoo during his recent visit to India.Highlights of the interview were Indian Cultural Connect, Vibrant Bilateral Ties and Cultural Connect and India’s Economic Prowess.

Video Message from Shri Prakash Javadekar, MoS (IC) for Forest, Environment & Climate Change on eve of Formal Launch of Website Diplomacyindia.com

Message from Gen. V K Singh, (Retd.) Hon’ble MoS, External Affairs to Diplomacyindia.com

WP2Social Auto Publish Powered By : XYZScripts.com