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.
The final draft that was presented on January 19th (2012) to the full Legislature, had in its development the support of an inter-institutional group made up of: the Technical Secretariat of the Presidency, the Ministry of Legal and Legislative Affairs, the Ministry of Finance, the Agency for Promotion of Exports and Investments of El Salvador (PROESA), CEPA and the former BMI, now known as the Development Bank, in addition to technical cooperation from the Inter-American Development Bank (IDB) and comments from APP specialists from the World Bank, the Treasury Department of the United States and the International Monetary Fund (IMF).
The final document is a product of discussions within the Economic and Social Council (CES). The various suggestions and concerns of different social sectors represented at the forum were duly considered and have enriched the draft.
The APP is a type of infrastructure development and service delivery using the involvement of private investment, which is intended to benefit the Salvadoran population through provision of appropriate infrastructure and services in different areas considered strategic for the country.
contract modifications, and develop and coordinate with the competent authorities of plans, policies and standards for the development and functioning of the PPP contracts in its various forms, among other functions.
Source: Presidencia de la República El Salvador
More on this topic
January 2011
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.
February 2012
Representatives of employers in El Salvador say the bill submitted to the Legislature does not provide legal certainty to investors.
The draft Law on Public Private Partnerships (PPP) is unsatisfactory to businesses and analysts, and they fear that if passed in its present form, there would be enormous discretion used when carrying out its regulatory functions which would not ensure legal certainty for investors .
May 2011
The bill submitted by the Government proposes a term not exceeding 40 years, including extensions, for public-private contracts.
The government is seeking to encourage private participation in infrastructure with the new law on Public-Private Partnerships (PPP).
The proposal includes three types of contracts for the PPP:
February 2012
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).
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