Flexiblity, clarity and the inclusion of detailed processes are the characteristics that should define the new public-private partnership law whose draft version is currently being re-discussed in the country.

So say experts from countries that have passed similar laws, which have proved very useful in attracting more foreign investment and setting the regulations under which those companies become established in the country.

In the opinion of experts, the law should include clear fiscal rules, and should be more flexible on issues like labor rights and environmental permits, in order to attract efficient investment to the country over a long time periods.

In an article in laprensagrafica.com, Eduardo Bitran, an expert on PPP and competitiveness in Chile, and member of the board who prepared the bill, "denied that it will be inflexible for investors. According to him, what they are seeking is to prevent abuses, such as those observed in other Latin American countries with which some governments sought to get political dividends. ‘For some it seems inflexible that the government can, in agreement with the dealer, renegotiate terms of additional work. Effectively, this law is more rigid because it allows a reasonable timescale of 15 to 20 years to make changes’, he said."

Source: laprensagrafica.com

More on this topic

PPP Law Discussion Suspended

August 2019

After the workers and union sectors rejected the bill creating the Public-Private Partnership Regime in Panama, the Assembly decided to suspend its discussion in the second debate.

Responding to the request to extend the period of consultations by a sector of the country, the plenary of the National Assembly suspended discussion of the second debate of Bill 12, which creates the Private Public Association Regime (APP) as a tool for the development of private sector investment, social and job creation, reported the government on August 27, 2019.

Draft Law on Public Private Partnerships Presented

January 2012

The Salvadoran Presidential Secretariat has presented a draft Law on Public-Private Partnerships to the Legislative Assembly.

A press release from the President of El Salvador states that:

“The Technical Secretariat of the Presidency presented this week a draft Law on Public-Private Partnerships (PPPs) as a tool to enhance public and private investment, generating growth and economic development in El Salvador.

El Salvador: 40-year Contracts for Public-Private Partnership

May 2011

The bill submitted by the Government proposes a term not exceeding 40 years, including extensions, for public-private contracts.

The government is seeking to encourage private participation in infrastructure with the new law on Public-Private Partnerships (PPP).

The proposal includes three types of contracts for the PPP:

El Salvador: Law for Public-Private Partnerships

January 2011

Government will send to Congress a draft of a Law regulating Public Private Partnerships.

The law would regulate state participation in these associations, to establish parameters for private enterprises and the regulations regarding tendering and contracting procedures.