4. PUBLIC – PRIVATE PARTNERSHIPS (PPP)
HONDURAS INVESTOR´S GUIDE 2020-2021
4.1 PUBLIC-PRIVATE PARTNERSHIP PROJECTS UNDER PRIVATE INITIATIVE The Law for Promotion of Public-Private Partnerships created by Legislative Decree number 143-2010 and its implementing regulations allows the Private Sector to submit investment projects in infrastructure and services through private initiative scheme, opening the way for new business opportunities in the country and thus facilitating access for greater and better infrastructure and public services. A Private Initiative is defined as: Model of Public-Private Participation where individuals can propose projects to be qualified by the Public Administration. In this case the Superior Council for the Public-Private Partnership with the Specialized Technical Unit for PPP Projects (UTEP-APP, for its acronym in Spanish) were created in accordance with Decree PCM 064-2019 as of public interest, to be executed and financed fully or partially by the private sector, and under the supervision of the Public Administration directly or through a Financial Entity as Fiduciary. 4.1.1 MODALITIES FOR PUBLIC-PRIVATE PARTICIPATION According to article 4 of the PPP Law, public-private participation may opt for the following modalities: a. Construction, operation, transfer, maintenance of public works, and/or public services. b. Extension of existing public works and/or public services. c. Presentation of all or part of a public service, whether the performance of the public work. d. Execution of Public Works. e. Administration as trustee of goods, services, accounting systems, computer systems, programs or development projects, credit contract, among others. f. Any other modality that allows the realization of a Private-Partnership within the framework of this law.
*Natural persons or legal entities, local or foreign, who intend to be part of a Public-Private Partnership (PPP for large-scale projects), must demonstrate to be of recognized prestige, experience, financial and technical capacity for its development). 4.1.2 FORMS OF ORGANIZATION OF ENTERPRISES TO PARTICIPATE IN A PUBLIC-PRIVATE PARTNERSHIP a. Co-investment or Joint Venture b. Consortium c. Legal entities, with or without profit d. Participation Contracts e. Management Contracts f. Trusts g. Any other form or modality suitable for the execution of works or provision of services 4.1.3 SELECTION PROCEDURES According to Article 19 of the PPP Law; the Ministry of Finance, through the Fiscal Contingency Unit (UCF, for its acronym in Spanish), based on the evaluation of the technical studies, must select and determine which projects can be implemented under public-private participation schemes. These projects, as previously contemplated within the Public Investment System, must be authorized by the Department of Finance.
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