Ibarra allocates 912,738 dollars to compensate urban buses until December

The Municipal Council of the Autonomous Decentralized Municipal Government of San Miguel de Ibarra created the Temporary and Conditional Municipal Program for Non-Refundable Temporary Economic Compensation for the continuity of the urban public transportation service, with a ceiling of 912,738.75 dollars for the period of August-December 2026. The regulation was sanctioned by Mayor Álvaro Ramiro Castillo Aguirre on September 23, 2026, and published in the Official Registry, Special Edition No. 1704 of Tuesday, October 20, 2026, within the municipal ordinances (official reference: ecuador-2026-10-20-esp-1704-1eefb0bc).

The origin: the elimination of the diesel subsidy

The Statement of Motives of the ordinance attributes the financial imbalance of the operators to the elimination of the national economic compensation mechanism for automotive diesel, established through Executive Decrees Nos. 125, 161, 352, and 378. According to the text, the price of diesel rose from approximately 1.80 dollars per gallon to 3.25 dollars, a difference of 1.45 dollars per gallon that directly impacts the cost structure of urban and combined transportation in the canton.

The document warns that, without corrective measures, this increase could be passed on to users through fare hikes or result in a reduction of frequencies, routes, and service quality, particularly affecting students, older adults, people with disabilities, and lower-income sectors. The compensation is expressly defined as a public and transitory consideration intended to cover the differential between the technical cost fare and the differentiated fare paid by passengers, and not as a subsidy, donation, indemnity, or guarantee of profitability.

The Municipal Council approved the text in two debates, in extraordinary sessions on Tuesday, September 15, and Friday, September 18, 2026, and the mayor sanctioned it on September 23, in accordance with Article 322 of the Organic Code of Territorial Organization, Autonomy and Decentralization (COOTAD). The certification of discussion and the reason for referral were signed by the general secretary Marco Castro Michilena.

How much each unit receives and who collects

Article 38 sets a maximum referential budget of 912,738.75 dollars, calculated based on a maximum fleet of 327 units and a referential monthly compensation of 558.25 dollars per unit. The amount is based on Technical Report DGA-UCCMS-2026-0017, dated August 24, 2026, which estimated a monthly consumption of 550 gallons and the recognition of 70% of the fuel price difference.

• August: 182,547.75 dollars (327 units).
• September: 182,547.75 dollars.
• October: 182,547.75 dollars.
• November: 182,547.75 dollars.
• December: 182,547.75 dollars.

The resources come from the First Reformatory Ordinance to the General Budget Ordinance of the GAD for the 2026 Economic Year, according to Memorandum No. IMI-DGF-2026-01488-M, dated August 25, 2026. Payment is transferred to the account of each eligible unit-owning partner within the first ten days of the following month, and the first disbursement corresponds to September 2026; exceptionally, the August payment may be made within that same month.

Annex I of the ordinance details the list of eligible owning partners, distributed among four operators: 28 de Septiembre, San Miguel, Campesinor, and La Esperanza. Each unit must provide proof of a current vehicle technical inspection, fuel receipts equal to or exceeding the monthly ceiling, displayed fare without surcharges, an updated RUC (Taxpayer Registry), and a payment request.

Controls, sanctions, and implementation deadlines

Inspection and verification are the responsibility of the GAD through MOVIDELNOR E.P., which will issue an Operational Compliance Report every month within the first five days, with random verification of 20% of the units per operator. The Cantonal Committee for the Improvement of Public Transport is also created, chaired by the highest authority of the GAD and composed of the Transit Commission, the Climate Change and Sustainable Mobility unit, the management of MOVIDELNOR E.P., a student representative, one from the artisanal guilds, one for each of the four operators, and one from the urban parish councils.

The sanctioning regime provides for a written warning and a reduction of up to 10% of the monthly compensation for minor infractions; a one-month suspension of the disbursement and temporary exclusion for up to three months for serious offenses; and definitive exclusion, restitution of values, and sanctions against the enabling title for very serious infractions, such as false information or double financing.

The transitional deadlines are limited:

• 30 days to form the Cantonal Committee and approve its operating mechanism.
• 60 days for MOVIDELNOR E.P. to present the Operational Improvement Plan with the reorganization of routes, frequencies, and stops.
• 4 months for the pilot phase of the Integrated Collection System.
• 8 months for the studies and the management model of the common fund and the integrated charging system.

The regulation also empowers the mayor to suspend or terminate the program early if the national diesel compensation mechanism is restored or if the National Government provides another benefit that covers the same costs.

The compensation comes at a time when Ibarra’s urban transport is facing the rising cost of diesel without tariff margins: the program sustains the operation of up to 327 units and prevents, at least until December, an increase in fares. Its continuity in 2027 is subject to evidence of operational compliance and the Municipality’s decision regarding the budget for the next fiscal year.

Source: Official Registry, Special Edition No. 1704, October 20, 2026, Municipal Ordinances, p. 22 (official reference: ecuador-2026-10-20-esp-1704-1eefb0bc).