The Special Commission on Infrastructure of the Costa Rican Assembly endorsed the bill that seeks to regulate the schemes for the development of public-private partnership projects.
The initiative, which has yet to go beyond the debate in the Legislative Plenary, establishes the processes and modalities for promoting private investment for the development of public infrastructure, public services and services related to these, applied research projects and/or technological innovation.
After passing the three debates in the National Assembly, President Cortizo sanctioned the law creating the Public-Private Association regime in Panama.
According to the Law that came into the hands of the Executive, companies that are delinquent in the payment of fines for breach of contracts, will have limitations to participate in these public concession model.
In Panama, in the third debate, the bill creating the Public-Private Association regime was approved, which in its latest version set limitations on companies accused of acts of corruption.
According to the text approved and awaiting the approval of the Executive, companies that are delinquent in the payment of fines for breach of contracts, will also have limitations to participate in these public concession model.
The removal of the disqualification from hiring natural and legal persons who have been sentenced for corruption is one of the most important changes made to the bill that creates the Public-Private Partnership Regime.
The National Assembly of Panama approved in first debate the bill establishing the Public-Private Partnership Regime.
On August 19, the Economy and Finance Commission approved in the first debate the project that seeks to regulate the contracts, generally long term, between the public and private sectors for the design, construction, repair, expansion, financing, operation, maintenance, administration and/or supply of projects and services such as roads, energy, telecommunications, public transportation, ports and water treatment, among others.
With the proposed regulatory framework for Public-Private Partnerships in Panama, construction businessmen hope to ensure that the projects conclude with the required parameters and that the processes are transparent.
Infrastructure such as roads, ports and airports and utilities can now receive private investment.
The law was prepared by the Executive in conjunction with the private sector, represented by the Superior Council of Private Enterprise (COSEP).
Elnuevodiario.com.ni reports that "...The deputy in the Sandinista party Jose Figueroa, a member of the Commission of Economy and Budget, said that this law will allow private investors to be able to receive compensation for their investments, which can be kind of tax incentive."
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.