Road Infrastructure: Bureaucracy vs. Needs

More than two years after an initiative was presented in Guatemala to create an autonomous entity made up of the government and private investors, which would be in charge of planning and executing road works, the proposal has not yet received the endorsement of the Legislative and the road network is still in poor condition.

Thursday, October 8, 2020

During the National Meeting of Entrepreneurs (Enade) 2017 the proposal to create the Superintendence of Road Infrastructure (Sivial) arose, an institution that would be an autonomous entity with the function of planning, tendering and contracting infrastructure works.

From the beginning, it was proposed that the Sivial would be composed of intendancies that would be in charge of the supervision and compensation for the developers of the projects. The plan is for the Ministry of Communications, Infrastructure and Housing (Civ) to maintain the lead in infrastructure matters, but with functions more attached to the design of public policies.

So far, Initiative 5431, the General Law of Road Infrastructure, has only passed the first debate in Congress and according to the congressmen there is a chance that in the coming weeks it will be known in a second debate.

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Allan Rodriguez, president of the Congress told that "... more discussion of the content is needed, a table was set up for that purpose in which the Minister of Communications and other sectors also participate. Amendments are needed, but it is not impossible that it can advance in the second debate."

Arguing that the institutions should not be given excessive power, there are deputies who reject the proposal to create the Sivial.

Enrique Montano, explained that "... several changes must be made to the initiative, since it is not convenient to create a regulatory entity such as Sivial. This regulatory figure has worked in the electricity sector, but the arrival of CICIG has taught the country that it is no longer necessary to create super powers or super powerful men within the State. The proposed figure will cause the president of the Association of Engineers or the Association of Architects to become the most sought-after positions in all of Guatemala because they are the ones who would assign which projects are good or bad in road infrastructure."

Starting next week, the Congress plans to open a third day of full sessions so that all economic initiatives can be known. See full initiative.

More on this topic

Controversy Grows Over Highway Concession

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After the Guatemalan Congress voted against the bill granting the concession to rehabilitate and operate the Escuintla-Puerto Quetzal highway, the winning company asks to return the process to third reading, but some deputies refuse.

Although the concession was granted in July 2018 through a public tender process to the Consorcio Autopistas de Guatemala, a business group that overcame the proposals of Mota-Engil Latin America and Anas International Enterprise, Congress voted against the bill that ceded in favor of the company the use of the road section.

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.

New Institution for Road Works Proposed

April 2018

In Guatemala a bill has been presented to create an autonomous entity, made up of government and private investors, which would be responsible for planning and contracting out infrastructure works.

The legislative project that emerged at the National Entrepreneurs Meeting (Enade) 2017, includes the creation of a Superintendency of Road Infrastructure (Sivial), which would be an autonomous entity with the function of planning, tendering and contracting out infrastructure works.

Costa Rica Approves $440 Million for Highway

February 2015

The Legislature has approved the creation of a Bank Trust for $440 million to finance construction of the route from San Jose to San Ramon.

From a statement issued by the Legislative Assembly of Costa Rica:

With 45 members in favor, unanimous approval was given this afternoon (February 5th) in a second debate to processing file 18887 on the Act for Development of Public Works on Highway, San Jose, San Ramon and its ring roads using a trust.