March 13 is the new date for the receipt of bids in the tender for the financing contract, design, construction and operation of the works of the Cargo Terminal at El Salvador's Oscar Romero Airport, under the format of Public-Private Partnership.
The original call for bids set February 12 as the deadline for receipt of proposals, however, because several companies have expressed interest in participating, it was decided to postpone until March 13 the delivery of tenders.
Registration has been opened in El Salvador for investment projects that require complementary public infrastructure works to be financed with funds from the Program Apuesta por Inversiones´ Fomilenio II.
There will be about $75 million available for the API Investment Program, part of the $277 million donated by the US government through the Millennium Challenge Corporation (MCC), supplemented with $88 million contributed by the Salvadoran government, making a total of $365 million for investing in a period of 5 years.
The government has announced that work will begin in September with the development of infrastructure projects in the coastal zone.
According to the government, the decision was made to start in September in conjunction with representatives of the Millennium Challenge Corporation in Washington, USA. Roberto Lorenzana, technical secretary of the presidency, said: "...
The government plans to make a second call so that investors can submit eligible projects to the investment program 'Apuesta por InversionES', a nonreimbursable fund created as part of Fomilenio II.
With the recent approval of Fomilenio II, the government of El Salvador is considering extending the call for investment projects eligible for funding from the program 'Apuesta por Inversiones ' (API), for which there are 13 projects that passed the eligibility phase in the first call, "... and which represents $14 million in private investment and $48 million in public investment. Of these, six are related to the tourism area, three in agribusiness, two energy, one aquatic and one for aircraft. "
The report "Economic Results At Close of 2013 and Prospects for 2014 " indicates that macroeconomic stability is threatened by rising public debt in relation to GDP.
In order to reverse the trend of economic stagnation reflected by the indicators analyzed, the Chamber proposes adopting measures such as the award of Puerto La Union, improving the investment climate, reforming the Law of Public-Private Partnerships (key to securing approval of the disbursement of funds from the second round of FOMILENIO), the adoption of the Law on Legal Stability of Investments and approval of a competitiveness agenda focused on reducing the costs incurred for operating in the country, among other things.
A proposal has been made to reduce the number of times a public-private partnership project would pass through the filter of the Legislative Assembly.
Among the reforms to the Law on Public-Private Partnerships that the Council for Growth has suggested to Congress is a reduction, from three to one, of the number of times a Public- Private Partnership (PPP) project should go through the filter of parliamentary approval.
The coastal areas contain half of the most fertile land in the country with substantial resources for fisheries and tourism.
With the implementation of Fomilenio II in the coastal area of El Salvador, there is great opportunity for the development of agriculture, leveraging funds expected to be provided by the U.S. government with a counterpart by the Salvadoran government, in addition to the private investment that could go along with production projects.
President Funes signed the Law Against Money and Asset Laundering without noticing the lack of special controls for Politically Exposed Persons.
The special controls for Politically Exposed Persons (PEP), was one of the reforms that was left out because the deputies did not approve it and the President, Mauricio Funes did not suggest it despite this being a recommendation by the Caribbean Financial Action Task Force Group (CFATF by its initials in Spanish).
The disbursement of $277 million for development of the coastal zone will be delayed at least until after the next elections in El Salvador.
The decision to postpone Fomilenio II until 2014 was publicised by the Millennium Challenge Corporation (MCC).
According to the Salvadoran president, Mauricio Funes and the technical secretary of the presidency, Alexander Segovia, the project could be signed after presidential elections next year.
The U.S. Ambassador to El Salvador stressed the need to adopt reforms to laws against money laundering and Public Private Partnerships.
According to the U.S. Ambassador Mari Carmen Aponte, laws against money laundering and Public Private Partnerships need to be passed in order to issue "clear signs" along with efforts to combat corruption in the country.
If approval is not given to the amendments to the Law on Public-Private Partnerships and the Money and Asset Laundering Act, the second disbursement will not be realised.
This was explained by Salvadoran President Mauricio Funes. "Donors are free to stipulate any conditions deemed appropriate. Everything that is the responsibility of the Executive has already been done," he said.
A short-term plan is being prepared to improve the investment climate and lift objections from U.S. Congress to fund the delivery of the Millennium Challenge Corporation
The information was confirmed by the U.S. ambassador to El Salvador, Mari Carmen Aponte. Both governments are working on concrete actions in the short term to allow for these improvements.
The Millennium Challenge Corporation has approved a second disbursement of funds for $277 million, aimed at developing the country's coastal area.
Now the decision rests with the U.S. Congress who will have to give an answer in 15 days. "... The MCC confirmed that its board has approved a pact for $277 million over five years. The Salvadoran government will contribute $88.2 million in the same period.
FUSADES is asking the Salvadoran Congress to make reforms to the Special Act on Public-Private Partnerships in order to ensure its effectiveness.
The Salvadoran Foundation for Economic and Social Development (FUSADES) is refering to the reforms that have been put forward by the ARENA party which among other things suggest that the Agency for Promotion of Exports and Investments of El Salvador (PROESA) be in charge of monitoring the administration of the law. The recently passed legislation "includes a new administrative institution: the Directorate of Public-Private Partnerships", reported Laprensagrafica.com.
In deciding whether to approve Fomilenio II the Millennium Challenge Corporation verifies respect for institutions, good governance, transparency and ethics.
These are, according to Mari Carmen Aponte, the U.S. ambassador in El Salvador, some of the requirements which the country must take into account so that a second Millennium Fund is approved. "The eyes of the U.S.