PUBLIC PRIVATE PARTNERSHIP ACT IN EL SALVADOR

In order to generate and promote private investment and to encourage the direct foreign investment in infrastructure projects and public services of collective interest, in a more efficient way, the Public Private Partnership Act was recently approved. This new regulatory framework aims to reduce red tape (trámites burocráticos) and create an environment of stability and legal security for those who are interested in contributing together with the Government, with economic resources and knowledge to the Salvadoran public sector.

Among other things, the Law establishes that all contracts greater than, or equal to, an amount of ten million dollars must be approved by the Congress of El Salvador. In addition, that same amount is established as the minimum investment required to be regulated by the Act. Smaller investments that do not represent debt or grant concessions, will not be approved by the Congress and will continue to be governed by the Public Administration Purchasing and Contracting Law (LACAP).

Essential public services like education, public safety, social security, penitentiary system, and water system, were excluded from the Law.

For further information please contact:

Freddy Zometa

Partner

Corporate Division

fzometa@romeropineda.com

Esta entrada fue publicada en Legal Updates. Guarda el enlace permanente.

Responder

Introduce tus datos o haz clic en un icono para iniciar sesión:

Logo de WordPress.com

Estás comentando usando tu cuenta de WordPress.com. Cerrar sesión / Cambiar )

Imagen de Twitter

Estás comentando usando tu cuenta de Twitter. Cerrar sesión / Cambiar )

Foto de Facebook

Estás comentando usando tu cuenta de Facebook. Cerrar sesión / Cambiar )

Google+ photo

Estás comentando usando tu cuenta de Google+. Cerrar sesión / Cambiar )

Conectando a %s