The Bukele administration plans to develop five infrastructure projects in El Salvador under the Public-Private Partnership model, which would require an investment of approximately $545 million.
The works of illumination of highways, the construction of a terminal of load and an administrative center, are some of the projects that the administration Bukele plans to tender and award in El Salvador, under the format of Public Private Partner.
When public resources are very limited, as it happens in Central American countries, association schemes between the State and the private sector become essential for developing the infrastructure that the region so badly needs.
A report from the Secretariat of Economic Integration (Sieca) states that "...In Central America, growing fiscal constraints faced by the countriespublic sectors make it increasingly difficult to achieve efforts for long-term infrastructure projects.In this context, Public-Private Partnerships (PPP) become relevant as an alternative measure of financing where private participation sector is facilitated in partnership with the government, with the aim of improving quality of services, reducing operating costs and capital, generating additional income, improving public management and minimizing budget spending.
A value of more than $5 billion has been given to the investment projects that the Ortega administration intends to carry out through public, private and investment partnership deals.
Among the projects proposed by the Nicaraguan government and open to funding proposals are:
An announcement has been made in Guatemala that work is being done on a draft specification for the six companies already pre-qualified to participate in the tender, which is now scheduled for the first quarter of this year.
The National Agency for Development Economic Infrastructure (ANADIE) has resumed the process of hiring a company for the construction, maintenance and operation of the State Administrative Center (CAE), after having announced its postponement in December 2015. In order to clear up any doubts and clarify aspects of the project, the company met with representatives of the six companies that have been prequalified. The project has an estimated cost of $180 million.
The current political turmoil is threatening the implementation of important infrastructure projects such as the construction of the State Administrative Center, valued at $200 million.
The resignation of several ministers in Perez Molina's cabinet, including Sergio de la Torre, Economy Minister and Commissioner for competitiveness, Juan Carlos Paiz, both members of the board of the National Agency for the Development Partnerships Economic infrastructure (ANADIE) complicates the near future of planned projects to be developed in the form of public - private partnerships.
A publication by the CAF reviews the development of five projects implemented using the public-private partnership model for infrastructure investment in Latin America.
From the Presentation document by the Development Bank of Latin America (CAF):
In recent decades, many Latin American countries have launched public-private partnership projects for the construction, maintenance and operation of public infrastructure. Initially, these models were based on the award of public works for road construction; However, over the years, they have been refined and its use has spread to other infrastructure and public services such as railways, ports, airports, mass transit systems, hospitals, prisons and public buildings, among others.
Based on well-formulated laws and proper management, these agreements generate efficiency in the financing and implementation of projects.
Public -private partnerships have become a very attractive option for funding large infrastructure projects that are carried out in Panama, they generate more efficiency of funding and less bureaucratic delay in implementation.
The process of selecting a trusteebank has started in order to bring about the construction and maintenance of highways CA-4, CA-10 and CA-11, which require an investment of $245 million.
The Commission for Public-Private Partnerships (Coalianza), intends to form a public-private partnership to achieve the financing, construction, renovation, expansion, operation and maintenance of the road network in the departments of Cortes, Santa Barbara, Copan and Ocotepeque.
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).
Airports, power plants, water and sewerage and port terminals are part of the public works under concession in Honduras.
Since the establishment, two years ago, of the Investment Facility under the scheme of the Commission for the Promotion of Public-Private Partnerships (COALIANZA) there have been four infrastructureprojectsconcessioned totaling $869 million.
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