A new wind farm and the expansion of the International Airport of El Salvador, are the first two projects to be conducted under this system.
"Today (yesterday) I called a meeting with the president of CEPA (Autonomous Executive Port Commission) and CEL (Executive Hydroelectric Commission of the Lempa River) to immediately structure the first two projects: the expansion of the international airport and the wind project which the CEL is working with," said Alexander Segovia, Technical Secretary of the Presidency.
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).
Salvadoran Congress has passed a law that will allow public institutions to form partnerships with private companies for infrastructure and public services projects.
From a press release issued by the Legislative Assembly of El Salvador:
In order to establish the regulatory framework for the development of projects for the provision of infrastructure and public services of general interest effectively and efficiently, the Legislative Assembly in Plenary approved with 84 votes in favor, the "Special Law on Public Private Partnerships"(PPP).
Salvadoran Congress has stipulated that the minimum investment amount for a private public partnership should be 10 million dollars.
From a press release of the Legislative Assembly of El Salvador:
The Special Committee on Finance and Budget, began review on Monday of the Bill on Public-Private Partnerships (PPP), which is to establish the regulatory framework for the development of projects for the provision of infrastructure and public services of general interest, in an effective and efficient format.
Adjustments to the text are being planned in anticipation of the implementation of Public-Private Associations (APP in Spanish).
This will be the second amendment to the Competition Act since it was created.
The main reason for this reform is to adapt standards to the government’s economic recovery plans and the imminent operation of the Public-Private Associations (APP).
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.
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.
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.
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.
Alexander Segovia, Technical Secretary of the Presidency, said that the government intends to send the bill to Congress before the end of this month," reported the article in Laprensagrafica.com.
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