New laws have been created such as the Public Private
Partnership (PPP) Temporary Employment Act (recently extended for 1
more year); Secured Transactions Law; Law on the Promotion and
Protection of Investment; Law of Simplification Processes of
Infrastructure; Call Centers, New Energy Law and a new Mining
In this context, Honduras has realized that a country without
infrastructure is a remote country in international trade and
therefore has prioritized projects in the areas of roads, ports,
airports and energy from renewable sources.
The PPP Law entered into force in Honduras in September 2010 and
its Regulation in February 2011. It replaces the concession law and
introduces a more expeditious process for the management,
development and execution of public works and services through PPP
contracts signed between the State and a private entity.
This law ensures strong legal framework to local and foreign
investors wishing to invest in infrastructure and / or services in
The law creates an autonomous and independent entity (Coalianza
) that is responsible for managing and implementing PPP projects
supported by the Superintendency of PPPs .
The way a public-private partnership in
Honduras can be executed varies between different
legal forms: participation agreements, joint - ventures, trusts,
etc. The recruitment process can be called through a tender or
national or international contest or any other competitive
The PPP law provides investors with an arbitration procedure to
resolve any dispute arising from the law or resulting from the
award of the PPP contract. The Arbitration law in Honduras is
based in the UNCITRAL model granting an arbitration procedure based
in international statutes for the resolution of conflicts.
A great advantage of this law is that an initiative to form a
PPP project may come from both the public and private sectors. This
means that PPP projects for public works and for services can be
presented to Coalianza either as a private initiative or as as
government initiative. The projects that are presented to Colianza
must comply with feasibility studies detailing the cost benefit of
the association and project feasibility.
Coalianza determines whether the project is viable as a APP
project and thereafter coordinates the bidding process by tender or
contest. Whether the initiative comes from the private or the
public sector, the contract will be awarded to the bidder which
proposal complies better with the requirements of the bid and which
involves a lower cost to the State.
The law allows the bidders to participate individually and or as
Both for individual bidders and consortia, the bidder which is
awarded with the PPP contract shall constitute a local company to
operate the project.
Prior to operation, the agreement must be ratified by Congress
and published in the Gazette to take effect.
The current PPP law was inspired by other countries like Peru
that has been successful in developing PPP structures, especially
in the infrastructure area.
Honduras currently faces the challenge of providing a better
platform for mobilization and access to the country by improving
its road, air and port infrastructure. Also, it has become
imperative expanding its range of energy production at more
economic and efficient costs.
It is worth to mention that PPP projects in road infrastructure
(construction and maintenance of roads) and ports have already been
awarded like the recent Puerto Cortes Terminal of General Cargo and
Bulks. Additionally, there are other projects in the final stage of
the bidding process like the Government Civic Center and some
others are under study.
It is expected more investment in infrastructure under PPP
schemes which seem to be appropriate for the economic development
of the country.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Dicho mecanismo consiste en que el Estado, por medio de una entidad delegante, encomienda a un gestor privado la provisión de bienes, obras y servicios a cambio de una contraprestación por su inversión y trabajo, según las condiciones previstas en el denominado ‘contrato de gestión delegada.
On last 13th September, 2016, the board of the Investment Partnership Program - PPI held its first meeting, in which the Brazilian government announced 34 infrastructure projects (concessions and privatizations).
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