Law on Public-Private Partnerships Officially Enacted

• 26 November 2021
• Local News
• 2347 Views

The Law on Public-Private Partnerships (PPP) has been officially enacted to promote and reduce institutional red rape for all public-private investment projects.

According to the new law, a public-private partnership refers to an agreement between government bodies and private sectors to rehabilitate, expand, construct, operate and/or maintain public infrastructure, or to provide public services at any specific period.

Meanwhile, investment projects that can be considered as PPP projects are developments that involve providing a service or constructing infrastructure to serve sectors such as transportation, post, telecommunications, energy, electricity, mining, agriculture, health industries, education, sports, tourism, clean water, sanitation, and housing, among other projects.

Moreover, the PPP agreement shall be made in the forms of Build, Operation and Transfer (BOT), Build Own Operate Transfer (BOOT), Design Build Finance Operate Maintain (DBFOM), Design Build Lease (DBL), Management/Operation Agreement, Maintenance Agreement, among others.

The selection of private partners can be done through a bidding method or a direct contracting method for both state-initiated and privately initiated projects.

This new law was enacted to replace the Law on Concessions in 2007. Under the new PPP law, the procedure of public-private investment projects will be eased and implemented in systematic and transparent manner.

The law will also establish new government bodies to manage, control, monitor, resolve disputes related to PPP projects. Experts believe that this is a complement to the newly enacted Investment Law. (Read more)

 

 

• Laws and Regulation
• Investment and Funding