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This, however, draws attention to transparency, planning, control and responsibility that must accompany this new alternative for the implementation of infrastructure projects of various kinds.

Regionally this new method is an excellent alternative. However, the departments and municipalities should have an eye for some private entities profiting the new schema which can ultimately be disastrous for local finance.

The scope of Public Private Partnerships Act passed by Congress includes public and private initiatives for the design, construction, operation and maintenance of infrastructure. The law includes not only the transport sector but rather to the involvement of private capital to other projects such as prisons, schools, hospitals, among others.

From the subjective point of view seeks to encourage the presence of institutional investors such as private equity funds. Contributions will be made public to the extent that the State check the availability of infrastructure and service levels agreed with the contractor. The term project will be 30 years, including any extensions or additions.

In order to avoid improvisation that has accompanied some public contracting processes is emphasized in the proper structuring of projects related to studies, risk analysis and socioeconomic assessment. Also included are modifications to the budget treatment regarding future fiscal periods of the projects at national and regional levels.

The initiative marks the route of the project and the requirements thereof. In case of the PPP initiative in involving the private sector as public sector resources to finance the project may be either public or private. In any case in this case the selection of investors will be conducted through public bidding.

In the event that the project is privately initiated two alternatives: (a) The project will have public funds of up to 20% of the estimated budget for the initial investment. The selection of the investor will be made through competitive bidding and get an extra-credit for having originated the project and (b) Where the financing of the entire project is by the private sector to operate the abbreviated selection, and in case the originator of the project is not selected, the same shall have the right to improve the supply of the winner.

Public-private partnerships with civil  and commercial laws will become the general rule against administrative law in many forms of infrastructure construction and ADR will further consolidate without the obstacles to sometimes imposed the absolute theory of administrative act or public orders.

 

Last Updated on Wednesday, 11 January 2012 10:36
 

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