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

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

Thursday, May 12, 2011

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:

- The state agency delivers public goods to private participants so that they can use them to "build, expand, repair or service"

- The private sector will use its own goods in order provide public services.

- The government proposes partners for the running of "general interest activities". Which are, according to the project, those which seek to promote strategic sectors of the economy, though they are not explicitly specified” reports a publication in Laprensagrafica.com

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Críticsms From Businesses in El Salvador on the Partnerships Act

May 2013

Private sector operators see in the Law of Public-Private Partnerships serious deficiencies which would prevent the bill from obtaining the desired results.

"The law, as it has been approved, will not achieve the expected results, we believe that it is not a good law, it has serious deficiencies that will make it very difficult to obtain the expected results," said Javier Castro, director of Department of Legal Studies (DEL) of the Salvadoran Foundation for Economic and Social Development (FUSADES).

Criticism of Public-Private Partnership Projects

February 2012

Representatives of employers in El Salvador say the bill submitted to the Legislature does not provide legal certainty to investors.

The draft Law on Public Private Partnerships (PPP) is unsatisfactory to businesses and analysts, and they fear that if passed in its present form, there would be enormous discretion used when carrying out its regulatory functions which would not ensure legal certainty for investors .

El Salvador: Public-Private Partnership Law Under Spotlight

August 2011

Experts from various countries have been discussing the how to make the law successful in terms of attracting foreign investment.

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.

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.