Ecuadorian Congress Approves Law to Distribute Oil Revenue to Subnational Governments

Legislators vote at a parliamentary meeting in Esmeraldas, March 27, 2025. X/ @Fcedenor23

March 27, 2025 Hour: 2:26 pm

The province of Esmeraldas was recently hit by an oil spill with long-term consequences.

On Wednesday, Ecuador’s National Assembly held a plenary session in Esmeraldas, where 106 legislators approved the “Law on the Sharing of State Revenues in Favor of Decentralized Autonomous Governments for the Industrialization of Petroleum.”

If this law is not vetoed by right-wing President Daniel Noboa, it will allocate one dollar from the sale of each oil barrel to development projects in the provinces of Esmeraldas, Santa Elena, and Sucumbios.

Presented in 2024, this law seeks to distribute oil revenues among parish, municipal, and provincial governments. The funds are expected to be used for drinking water, sanitary and storm sewer systems, solid waste management, road infrastructure, and environmental management.

“We hope that this Revenues Law comes into effect and is not vetoed by the Executive. For social justice, the Assembly has responded to Esmeraldas!” stated Viviana Veloz, the president of the Assembly.

📍#Ecuador

An oil spill in Esmeraldas province has contaminated key water sources, leaving hundreds of thousands of people without safe water.

The @UN quickly deployed a team that is supporting local authorities and partners respond to the crisis.

More from the #UNDAC team⬇️ pic.twitter.com/lAUH0Gbbsn
— UN Humanitarian (@UNOCHA) March 27, 2025

Currently, 6 out of 10 people in Esmeraldas suffer from multidimensional poverty. In this coastal province, 25 percent of the population lives in extreme poverty, and the rate of unsatisfied basic needs stands at 53.1 percent, a figure significantly higher than the 28.4 percent national average.

Oil revenues will be distributed as follows: 10 percent for parish governments, 50 percent for municipalities, and 40 percent for provincial governments, said legislator Victoria Desintonio.

“This victory cannot remain just on paper. We demand that President Daniel Noboa not veto this law, as he has done with many others. This time, Mr. President, it is about historical justice for communities you have yet to visit, but which have sustained the country for decades. Do not veto hope! Do not block progress for those who need it most!” legislators from the Citizen Revolution bloc said.