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The Development Bank of Latin America (CAF) signed a $42 million loan agreement with Cuenca for urban infrastructure development -- one of the largest multilateral financing packages for an Ecuadorian city outside Quito and Guayaquil. The investment comes as Cuenca faces mounting infrastructure strain from flooding and aging utility systems.
Ecuador declared a 60-day national emergency on March 12 after relentless rains caused flooding, landslides, and infrastructure damage across the country. At least 11 people have died, 22 rivers have overflowed, and 19 bridges have collapsed since January.
Cuenca has become the third Ecuadorian city to adopt a formal climate action plan, covering electric bus deployment and water source protection. Bloomberg Philanthropies has awarded the city $150,000 for youth-led environmental projects as Cuenca enters 2026 under a dramatically different hydrological reality.
Ecuador is experiencing its wettest February in a decade, with Cuenca recording 150mm of rain — nearly double the historical average. Nationwide, 4,700 people have been impacted, 770 displaced, and the Mazar reservoir is discharging at over-capacity.
Quito was pounded by hail and electrical storms Wednesday afternoon, then blanketed by dense fog Thursday morning. Ecuador’s weather agency forecasts intensifying rainfall through March, raising mudslide risk in the capital’s surrounding valleys.
Manabí province’s two largest cities generated $20.5 million in tourism revenue during the four-day Carnival holiday, with Manta recording 90% hotel occupancy and the Mariana Fest alone drawing 60,000 people to El Murciélago beach.
Repeated wave surges have flooded condo lobbies, destroyed sea walls, and damaged vehicles in Salinas and Punta Blanca. Experts warn that sea levels have risen 39 centimeters since the 1970s — and the worst is yet to come.
INAMHI forecasts heavy rainfall with electrical storms across most of Ecuador through February 19, with three provinces on red alert and nine on orange. The highlands face afternoon thunderstorms, the coast faces flooding risks, and four highways remain closed from earlier weather damage.
International cacao prices have collapsed from a record $13,000 per ton in late 2024 to $3,581 in February 2026. Ecuadorian farmers now receive roughly $130 per quintal — down from $400 a year ago — squeezing margins in communities across the coast.
Loja province has been placed on orange alert and emergency warehouses now hold over 6,000 humanitarian aid kits — three times the historical average. Three cantons are under active watch as the rainy season intensifies across Ecuador's southern highlands.
Overnight storms collapsed a hillside in Quito's La Bota neighborhood, damaged multiple homes, and interrupted water service. No fatalities were reported, but the incident underscores rainy-season risks in the capital's hillside neighborhoods.
Rural roads around Vilcabamba are choked with mud, drainage systems are blocked, and students in Chaguarpamba can't get to school. But there's a silver lining: the government just announced $48 million for Loja road rehabilitation, including the critical Loja-Malacatos-Vilcabamba corridor.
